What happens to international stocks or ETFs/Mutual Funds if the stock holder’s country goes to war with the asset’s country? I’m not asking if wars cause values to go up or down per se. It’s more about the status of ownership in general. Does it make a difference what broker the assets are held within? Is it generally a unique situation every time?
Examples, all assuming the investor is a US citizen, in the US, with a US brokerage, and the US goes to war with the UK. I just picked those 2 countries since it’s easy to find example assets, not because it’s likely they’d go to war.
1. What would happen to shares of BP traded on NYSE, which is a multinational based in the UK?
2. What about shares of an international ETF like VXUS, traded on NASDAQ? (According to some reports, 8.51% of VXUS holdings are in the UK.)
3. Would bonds be any different? (E.g. VTABX, with 8.33% holdings in the UK.)