Global Equity Investing: Do Countries Still Matter?

Abstract

World equity investment vehicles - sector and regional funds, single-country funds and emerging market sector funds, just to name a few - can be dizzying, but are worth exploration. The following key topics about global investing provide a solid foundation for investors to both understand and make informed decisions about the role of country-focused investment strategies. 1. Globalization: Are investors reluctant to go global? 2. Country versus Sector Effects: -What does historical and recent research reveal? -Why have sector effects and country correlations increased? -How are baskets of stocks correlated to both their home country markets and global sectors? 3. Implications for Investors: What are the implications for investors seeking to build a portfolio of global equities?

Keywords: Global, Equity, Country, ETF, Top-down, Investing, Country Effect

JEL Classification: G00