Key terms for global investing

By: Sound Choices • May 9, 2018 • Personal Finance

Global investing is a catch-all phrase for investing in securities from around the world – but there is more to it than just that. Here are some of the different categories associated with global investing:

 

Global

Invest anywhere in the world including your home country.

International

Invest anywhere in the world except your home country. In Canada, that means both Canada and the United States.

EAFE

The 21 Developed Markets in Europe, Australasia and the Far East:

Australia Austria
Belgium Denmark
Finland  France
Germany Hong Kong
Ireland Israel
Italy Japan
Netherlands New Zealand
Norway Portugal
Singapore Spain
Sweden Switzerland

United Kingdom

Developed Markets (DM)

The countries whose markets are characterized by ease and efficiency of capital movement**:

Americas Europe & Middle East Pacific
Canada Austria Australia
United States Belgium Hong Kong
Denmark Japan
Finland New Zealand
France Singapore
Germany
Ireland
Israel
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom

Emerging Markets (EM)

Markets considered less "developed", these countries or regions are expected to eventually become developed markets:

Americas Europe & Middle East Asia
Brazil Czech Republic China
Chile Egypt India
Colombia Greece Indonesia
Mexico Hungary Korea
Peru Poland Malaysia
Qatar Pakistan
Russia Phillippines
South Africa Taiwan
Turkey Thailand
United Arab Emirates
Saudia Arabia

To learn more about global investing, read "Why go global" and talk to your financial advisor.

* Source: https://www.msci.com/eafe. DM countries of Australasia = Australia, New Zealand. DM countries of the Far East = Hong Kong, Japan and Singapore.

**The transfer of capital between countries either by the import or export of securities, dividend payments or interest payments. For instance, when Japanese investors purchase American securities, the payment will be in dollars. Hence, a demand for the dollar is created, necessitating an increase in the dollar's exchange rate. Read more: http://www.investorwords.com/15286/capital_movements.html#ixzz5CZIlxe69

Developed Markets
Source: https://www.msci.com/market-classification,

Emerging Markets
Source: https://www.msci.com/market-classification, http://www.nasdaq.com/article/emerging-markets-versus-frontier-markets-cm161882


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