International equity U.S. mutual funds and diversification benefits
- Resource Type
- Authors
- Jonathan Fletcher
- Source
- International Review of Economics & Finance. 76:246-257
- Subject
- Economics and Econometrics
050208 finance
media_common.quotation_subject
05 social sciences
Diversification (finance)
Equity (finance)
Monetary economics
Treasury
State (polity)
HT388
0502 economics and business
Business
050207 economics
Finance
media_common
- Language
- ISSN
- 1059-0560
This study examines whether U.S. international equity mutual funds provide out-of-sample diversification benefits in the presence of no short selling constraints. Ignoring the economic state, international mutual funds do not provide out-of-sample diversification benefits. However international mutual funds do provide out-of-sample diversification benefits in certain economic states. The benefits are concentrated when the lag one-month U.S. Treasury Bill return is lower than normal.