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Explained in plain English

How do global funds work?

Global funds let UK investors buy shares in companies like SpaceX, even though it's listed on the US Nasdaq. They pool money from many investors to buy a diverse range of international stocks and bonds. This diversifies your investments across different countries and industries, potentially reducing risk and boosting returns compared to just investing in the UK.

Stories that explain this

SpaceX shares entered Nasdaq 100 following rule changes.

Questions this opens up

What is diversification? How do funds pick shares? Are there different types of funds?

Related explainers

What are index funds? UK funds buying US shares? Why do brokers rate 'buy'? Can I do it myself? How do I start? Will my pension buy SpaceX? What is passive investing? How do rule changes help?

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