Because of greater, broader global growth, this may be a time to use ETFs more tactically to express convictions in certain regions of the world since some countries will perform better than others, Jones said. This can be done with active ETFs, or using passive ETFs that focus on a certain style or sector.
Currency considerations are something to keep in mind when investing internationally. Jones said there can be good reasons to hedge, such as when a country’s financial minister or central bank says they’re actively trying to depress their currency.
“We try to take an approach that if we have a compelling reason to do it, we’ll be aggressive in hedging,” Jones said. “But if there’s no compelling reason to do it, why take the additional risk.”