A Final Word Investing worldwide provides investors with additional diversification, a hedge against a decline in the Canadian dollar, and the opportunity to take advantage of different market timings. Investors should, however, be aware of the exchange-rate risks and the volatility in returns associated with many of these funds. Moreover, management expenses are higher for international funds, due to the added cost of having overseas advisers and operating in foreign markets. Key Points to Remember Going global adds diversification. Investing internationally decreases risk.
International funds provide a hedge against a drop in the Canadian dollar.
Be aware of exchange-rate risks.