World Fund
Categories: Econ, International
If you think a world fund is a global fund that includes securities from countries all over the world...well...you’d be right...as long as you include the US.
World funds, which typically have a good amount of American securities in them, are great for their diversification. If there was a major economic downturn in one country, a world fund would only be partially affected, helping investors minimize their risk.
To note: world funds are different than “international funds,” which are funds that are exclusively funds not in your home country. For instance, an American investing in a European-securities-only fund would be an international fund.