📋 Tips for choosing international ETFs

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Let’s dive into 3 briefs talking about ways to build wealth around the world.

  • Tips For Choosing International (Ex-US) ETFs 📋

  • Ways To Invest in NVIDIA's Tech Triumph 🗠

  • Profit from Cybersecurity Surge? 💰

Today’s newsletter is a 4 minute read.

Tips For Choosing International (Ex-US) ETFs 📋

Looking to diversify your passive portfolio with some international stock or bond exposure?

Here are some tips for venturing outside of the U.S.

Tip #1: Make Sure You’re ACTUALLY Getting The International Exposure You’re Seeking

One big mistake I see, is people adding international ETF’s that INCLUDE U.S. stocks or bonds. You have to be sure that the ETF is EX-US (excluding the U.S.). Many ETFs like VT (Vanguard Total World Stock) for example, include international stocks, but the allocation is mostly to U.S. stocks.

So, if you would have purchased this ETF to add to your existing U.S. stock index ETF, you may not be getting the exposure you had hoped for, and more holdings overlap.

Allocation of VT:

Tip #2: Understand Exposure To Developed Vs. Emerging International Markets

Allocating to developed vs. emerging is a big decision in your portfolio and it depends on your risk tolerance.

Developed markets are lower risk, because they’re established (and likely western-like) economies. Think the UK, Australia or Canada.

Investing here will be considered “safer”.

Emerging markets are still growing economies.

There is more risk with investing in emerging markets like India, Mexico, or Indonesia, but, more reward as well.

So it’s important to not overweight too heavily to emerging markets if you’re a conservative risk taker. On the flip side, if you’re looking for more growth opportunities, emerging markets might be a good place to put capital.

Tip #3: Compare Performance & Holdings Between Top International ETFs

It’s good to compare the top ETFs performance against one another. This will help you dig a little deeper into WHY there is some outperformance in one or the other.

Two ETFs may have very similar top holdings like Nestle, Taiwan Semiconductor, Toyota Motor Corp, and Louis Vuitton- BUT, allocation matters!

Even just a few higher quality companies with slightly higher allocations in one ETF vs. the other can lead to outperformance.

So, compare, compare, compare!

Although international markets overall haven’t performed as well as the U.S., that doesn’t mean this will last forever.

Many people are still supporting diversifying via international stocks and bonds.

Hopefully you can be better prepared to start researching this important asset class!

Ways To Invest in NVIDIA's Tech Triumph 🗠

NVIDIA is making headlines with its groundbreaking contributions to both the gaming and automotive industries.

By collaborating with CD PROJEKT RED, NVIDIA has introduced path tracing to the acclaimed title Cyberpunk 2077, significantly enhancing the gaming experience.

This innovation, along with the expansion of over 1,600 game titles on GeForce NOW, showcases NVIDIA's dominant stance in the gaming world.

But the excitement doesn't end there. NVIDIA's automotive segment is cruising at record speeds, with revenues hitting $296 million.

The surge in its design win pipeline, particularly with electric vehicle giant BYD adopting NVIDIA DRIVE Orin™, signals NVIDIA's accelerating influence in the automotive sector.

For investors looking to capitalize on NVIDIA's dual-sector dominance, here are a few strategies:

  1. Direct Stock Investment: NVIDIA's stock (NVDA) is a straightforward way to gain exposure to its growth in gaming and automotive tech.

  2. Tech and Auto ETFs: Consider ETFs that hold NVIDIA within their portfolios, particularly those focused on tech innovation and electric vehicles.

  3. Gaming and EV Mutual Funds: Some mutual funds specifically focus on the gaming industry or electric vehicles, offering a diversified investment option.

NVIDIA's pioneering efforts in gaming and automotive technologies not only fortify its market position but also open up lucrative avenues for investors eager to be part of this tech revolution.

Profit from Cybersecurity Surge? 💰

In light of the rampant data breaches affecting giants like Cash App and numerous healthcare services, the cybersecurity realm is in the limelight, revealing glaring gaps in our digital armor.

These breaches not only compromise personal data but also shake the very foundation of trust in digital platforms.

As we navigate this digital era, the urgency for stringent cybersecurity measures is more pronounced than ever.

This cybersecurity conundrum presents a silver lining for investors and businesses keen on turning challenges into opportunities.

Here are a few strategies to profit from the burgeoning need for cybersecurity:

  1. Invest in Cybersecurity Stocks: Public companies specializing in cybersecurity solutions are prime candidates for investment. Their products and services are in high demand, potentially driving up stock prices.

  2. Explore Cybersecurity ETFs: For those preferring a diversified approach, cybersecurity ETFs encompass a broad range of companies in the sector, mitigating the risk tied to individual stocks.

  3. Venture Capital in Startups: Innovative cybersecurity startups are on the rise, many offering groundbreaking solutions. Angel investing or venture capital in these companies can yield substantial returns.

  4. Crowdfunding Platforms: Some platforms allow investing in cybersecurity startups at an earlier stage, providing a unique opportunity to be part of potentially disruptive solutions.

  5. Cybersecurity Bonds and Funds: Certain funds are dedicated to supporting cybersecurity initiatives, offering a more secure investment avenue with steady returns.

The surge in data breaches, while alarming, underscores the dynamic potential of the cybersecurity industry, making it a pivotal field for forward-thinking investors.

Food For Thought 🧠

"Bulls make money, bears make money, pigs get slaughtered.”
- Old Wall Street saying, suggesting that both long (bulls) and short (bears) positions can be profitable, but greed (pigs) can lead to losses.

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DISCLAIMER: We are not investment advisors, and this content is for educational purposes only. We don’t offer financial, legal, or tax advice. Nothing we say is a recommendation to buy or sell any assets. Trading and investing are extremely risky, so please be careful and do your own research.