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Finance: What is a Country Basket (Index Fund)? 30 Views


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Description:

What is a Country Basket (Index Fund)? Investing internationally can be a challenge, as foreign exchange, different accounting rules, time zones and a panoply of other hurdles can often accompany such an endeavor. ETFs and mutual funds that are professionally managed to make international investing easier are designed to address those issues. A country basket is an ETF that might be for a specific region, such as The 4 Asian `Tigers’: (Hong Kong, Taiwan, South Korea and Singapore), or other criteria, such as G7 countries not including the US.

Language:
English Language

Transcript

00:00

Finance, a la shmoop. What is a country basket index fund?

00:07

All right we're picking daisies, marigolds, lilies so uh how do we [Pictures of flowers]

00:12

rephrase in Italian? Like, we want to fill a portfolio basket with just stocks [Pouring a glass of red wine]

00:17

representing the overall financial health of Italy. Is Italy healthy? While

00:23

they smoke a lot they drink a lot of wine they eat a bunch of pasta but there

00:27

always seems to be a woman from some small village who's celebrating her [Old woman at a birthday party]

00:30

117th birthday over there. Well a country basket is just an index fund of

00:36

stocks representing a country. Like we're doing Korea... South we're gonna have

00:42

in that basket dunno some Samsung, a load of Daewoo, a hunk of Hyundai and some [Company stocks being added to the basket]

00:48

nice barbecue on the side. That'd be our Korean country basket and it's a good

00:52

basket to fill if you're just bullish on a country but not really sure which

00:56

flower on which to place your bets. It's like instead of trying to decide between [The stocks in the basket turn into flowers]

01:00

roulette or poker or slots... Well you just buy stock in Las Vegas

01:05

Sands you know you bet on the entire casino, and bueno Fortuna you know good [Someone checking their cards in a casino]

01:10

luck there pal, doesn't the house always win? Yeah so why do people keep going there?...

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