International Investing: Why you are underexposed and what you can do about it

International exposure is crucial for investors because it helps diversify their portfolios, reducing risk and potentially increasing returns by tapping into global markets and opportunities.

Investors can increase their international exposure by investing in international equities, exchange-traded funds (ETFs) focused on global markets, or mutual funds that include international assets.

InvestSMART constructs their international equities portfolios using exchange-traded funds (ETFs), which provide diversified exposure to global markets in a cost-effective manner.

ETFs offer a simple and cost-effective way to gain diversified exposure to international markets, allowing investors to access a broad range of global equities with lower fees compared to traditional mutual funds.

To determine if you are underexposed to international investments, review your current portfolio allocation and compare it to your investment goals and risk tolerance, considering the benefits of global diversification.

When choosing international investments, consider factors such as market trends, economic conditions in different regions, currency risks, and the potential for growth in various sectors.

Yes, international investing can help reduce risk by diversifying your portfolio across different markets and economies, which can mitigate the impact of local market volatility.

Currency fluctuations can impact the returns of international investments, as changes in exchange rates can affect the value of foreign assets when converted back to your home currency.