Foreign index funds such as WEBS may be more useful as diversification tools than closed-end funds or ADRS because

Question

Quizplus · Accepted Answer

Foreign index funds such as WEBS are well-diversified and continuously priced, making them more useful as diversification tools than closed-end funds or ADRs. Their expense ratios may be similar to open-end country funds, but this is not the most important factor in assessing their usefulness for diversification purposes. They are not actively managed, and whether they sell at a discount to net asset value varies depending on market conditions.

Foreign Index Funds Such as WEBS May Be More Useful