International Growth Equity

International growth mutual funds and ETFs invest the majority of their assets... International growth mutual funds and ETFs invest the majority of their assets in non-U.S. developed markets. These typically include nations in Europe (Germany, France, Spain, the U.K., and Italy, as well as the Scandinavian countries). Growth companies are those firms that are projected to grow at a faster rate than the stock market average, based on measures such as book value, revenue, and earnings per share. Depending on their mandate, they may invest in equities of varying market capitalizations (small, medium, and large), sectors, as well as specific investment strategies. The most popular funds tend to concentrate on large caps, though. Growth companies tend to trade at higher valuations (price-earnings ratios, for example), than so-called value stocks. This is because they are typically valued more for their potential years from now, rather than their current revenue or earnings. On one hand, growth companies can be good investments if they manage to meet or exceed forecasted revenue and earnings growth. On the other hand, a growth company that fails to meet estimated future revenue or earnings targets may significantly decline in value. International growth mutual funds and ETFs can have different sector exposures, depending on where fund managers decide to concentrate their holdings. Industrials, consumer discretionary, financials, and information technology are popular sectors, however. Growth companies are purchased by investors primarily for their capital gains potential. While some do offer dividend payouts, these yields tend to be low. Growth companies that do have positive cash flow usually prefer to re-invest these funds in their operations. Accordingly, international growth mutual funds and ETFs are usually appropriate for more aggressive investors willing to take on more risk in search of higher returns. Last Updated: 06/02/2023 View more View less

International growth mutual funds and ETFs invest the majority of their assets in non-U.S. developed markets. These typically include nations in Europe (Germany, France, Spain, the U.K., and Italy, as well as the... International growth mutual funds and ETFs invest the majority of their assets in non-U.S. developed markets. These typically include nations in Europe (Germany, France, Spain, the U.K., and Italy, as well as the Scandinavian countries). Growth companies are those firms that are projected to grow at a faster rate than the stock market average, based on measures such as book value, revenue, and earnings per share. Depending on their mandate, they may invest in equities of varying market capitalizations (small, medium, and large), sectors, as well as specific investment strategies. The most popular funds tend to concentrate on large caps, though. Growth companies tend to trade at higher valuations (price-earnings ratios, for example), than so-called value stocks. This is because they are typically valued more for their potential years from now, rather than their current revenue or earnings. On one hand, growth companies can be good investments if they manage to meet or exceed forecasted revenue and earnings growth. On the other hand, a growth company that fails to meet estimated future revenue or earnings targets may significantly decline in value. International growth mutual funds and ETFs can have different sector exposures, depending on where fund managers decide to concentrate their holdings. Industrials, consumer discretionary, financials, and information technology are popular sectors, however. Growth companies are purchased by investors primarily for their capital gains potential. While some do offer dividend payouts, these yields tend to be low. Growth companies that do have positive cash flow usually prefer to re-invest these funds in their operations. Accordingly, international growth mutual funds and ETFs are usually appropriate for more aggressive investors willing to take on more risk in search of higher returns. Last Updated: 06/02/2023 View more View less