WORLD EQUITY BENCHMARK SHARES (WEBS)
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Have you ever wanted to invest in Japan, Mexico, or France but not known which companies were sound investments?
WEBS (an acronym for world equity benchmark shares) help to solve this dilemma by allowing you to invest in a broad range of companies represented in an index of a particular country.
Just as "spiders" allow you to invest in a security that tracks the U.S. equities market through the S&P 500 Index, WEBS allow you to invest in a security that tracks equity markets in 17 different countries.
WEBS track and attempt to mimic the price
performance and yields of Morgan Stanley Capital International
indexes. WEBS for individual countries can be traded on the
American Stock Exchange. The following chart provides you with a
list of countries for which WEBS exist along with their
corresponding ticker symbols.
Investing in WEBS allows you easy access to foreign markets and gives you the ability to diversify your portfolio beyond the United States stock market. You can buy WEBS with U.S. dollars and trade them as easily as any other stock. Although diversifying internationally may reduce some risk in your portfolio, you must take into consideration currency and political risks, which vary from country to country.
Now let's sum it all up.