Buying shares of a fund, such as the Vanguard FTSE Europe ETF (VGK +0.04%), gives you a position in more than 1,300 companies on the continent, while the iShares MSCI Emerging Markets ETF (EEM -0.09%) confers exposure to more than 1,200 large and mid-size companies from countries such as China, India, Brazil, South Korea, and South Africa.
Alternatively, the iShares Semiconductor ETF (SOXX -2.47%) mostly comprises U.S. companies, but Taiwan Semiconductor Manufacturing (TSM -1.95%) stock is one of its biggest components. The fund also includes foreign chipmakers ASML Holding and NXP Semiconductors (NXPI -2.33%), among others.
Buy American depositary receipts
Some foreign companies list their stocks on U.S. exchanges in addition to their home markets. In that case, you can simply purchase shares on the Nasdaq or the New York Stock Exchange (NYSE) through domestic brokerages, just as you would for a U.S.-based company.
These shares will usually be in the form of American depositary receipts (ADRs) and represent equity stakes equivalent to a predesignated number of shares of the company's core stock on its home exchange.
You may also be able to buy ADR stakes in companies that don't trade on U.S. exchanges through over-the-counter (OTC) markets accessible through your broker. But be aware that ADRs may not offer privileges, such as voting rights conferred by owning a company's home-market shares. You may need to be willing to forgo the prospect of voting as a shareholder to acquire stakes in promising international companies.