Risks inherent to investing in companies in countries outside the US include;
- less stringent reporting requirements
- currency fluctuations
- government regulation and policy changes
In my opinion, the reward does not outweigh the risk and besides that, the fees within mutual funds or etf's that deal in emerging markets and overseas markets are quite high and if you have been following this blog for any amount of time, then you already know what I think of fees. Arrghh.
Stick to a domestic index fund, keep your fees super low and emotions in check and you are doing about all you can. With that simple strategy, you will beat 90% of the people including investment professionals.