Why Invest Internationally?
While most U.S. investors tend to focus their portfolios around domestic securities, more than 75% of global economic output and over half of the world's equity market capitalization comes from countries outside of the U.S.* Investing internationally can provide access to companies, technologies, and even entire industries that do not exist in domestic markets.
A strategic allocation to international securities may enhance a portfolio's risk-adjusted returns, provide portfolio diversification, and offer opportunities to seek higher performance. And when those securities are not hedged, international investing can offer pure exposure to local equity and currency returns.
*Source: Data on world GDP and market cap from World Bank 12/31/11
Past performance does not guarantee future results.