I'm an investment newbie, and I'm trying to understand the terminology.

On the website for a certain investment firm, the main types of assets are:

  • Large Cap Equity
  • Small Cap Equity
  • International Equity
  • Fixed Income
  • Cash Investments

It's easy to Google for all of these except "International Equity" Can someone provide a basic explanation of what this is?


Assuming you're in the United States, then International Equity is an equity from a different country.

These stocks or stock funds (which reside in a foreign country) are broken out seperately becuase they are typically influenced by a different set of factors than equities in the United States: foreign currency swings, regional events and politics of various countries.


International means from all over the world. In the U.S. A Foreign Equity fund would be non-US stocks. There's an odd third choice I'm aware of, a fund of US companies that derive their sales from overseas, primarily.


International equity are considered shares of companies, which are headquartered outside the United States, for instance Research in Motion (Canada), BMW (Germany), UBS (Switzerland). Some investors argue that adding international equities to a portfolio can reduce its risk due to regional diversification.


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