Learning about international investing is vital as global markets show striking contrasts. The S&P 500 has yielded about 500% returns since 2007, while Chinese stocks have dropped during this same timeframe. These stark differences show why investors should look beyond their home markets.
Investors from 109 different countries and regions have already found this promising chance. Many new investors worry about getting started, but the barriers might be lower than expected. Starting with just a few hundred dollars monthly works well, though most lump sum accounts need around $50,000. On top of that, it helps to know that big tech companies make up 22% of the US market – an unusually high concentration by historical measures.
Expat Wealth At Work will help you understand why global markets attract more attention now. You’ll learn the essential concepts needed before investing internationally and get practical steps to start your global investment path with confidence.
Why International Investing Is Gaining Attention
The global investment landscape is changing rapidly, and international investing looks more attractive than ever. The Morningstar Global Markets ex-US Index has more than doubled the return of the US Market Index since the start of 2025 in dollar terms. This remarkable performance suggests a possible end to the US market’s long-running dominance.
International investing provides significant diversification advantages beyond short-term gains. US and foreign markets often move independently, which helps smooth out portfolio volatility. This strategy reduces dependence on US economic performance and lets investors benefit from growth in other regions.
Emerging markets show exciting potential right now. India and China have grown faster than the US historically. Markets in Mexico and Brazil have jumped about 30% in 2025 alone. The Morningstar Korea Index has performed even better with a 43% increase.
International markets offer better value propositions. Stocks outside the US typically trade at lower prices than their American counterparts. This suggests potential for higher future returns. Adding different currencies creates a natural shield against exchange rate fluctuations. This protection proved valuable, as the US dollar saw its worst first half since 1973 this year.
Smart investors know that global diversification helps them access innovative sectors worldwide and builds stronger portfolios for the future.
Core Concepts Every Investor Should Know
Learning about international investing lets you tap into more than half of the world’s market opportunities beyond your home country. We focused on diversification as the key to success in international markets. This strategy spreads risk across foreign markets and can boost your returns.
The foundations of global investing start with market classifications:
- Developed markets: Advanced economies that come with lower risk
- Emerging markets: Markets with high growth potential and moderate risk (like India, Brazil, South Korea)
- Frontier markets: Markets that offer the highest risk-reward ratio with developing infrastructures
Your investment returns can grow if foreign currencies become stronger than your home currency. Assets spread across different currencies create a natural shield against exchange rate changes.
International investors face several challenges. These include political instability, different regulatory systems, and limited access to market information. The costs of international investments often run higher than domestic ones.
Here’s how you can get started:
- Pick ETFs that track international indexes like MSCI EAFE or MSCI Emerging Markets
- Buy government bonds from stable foreign economies
- Invest directly in well-known foreign companies like Nestlé or Samsung
The key to success in international investing lies in finding the right balance between geographical exposure and your risk comfort level and investment timeline.
How to Start with International Investing
Want to apply your international investing knowledge? Your first step is to pick an investment approach that matches your comfort level. ETFs and mutual funds give beginners the easiest way to start, with instant diversification across multiple foreign securities.
Your strategy should guide your choice of a broker with global access. Many platforms let you trade in 7 local currencies across 12 foreign markets. Please review the fee structure thoroughly, as trading fees for international investments often surpass domestic rates.
A small initial investment makes sense. Expert investors suggest putting 5-10% of your portfolio into conservative strategies. More aggressive approaches can go up to 25%. This careful approach helps you adapt to international market patterns.
ADRs provide direct exposure to foreign stocks on US exchanges without complex currency conversions. You might also choose international index funds that track specific foreign markets or regions while spreading your risk.
The broader economic and political climate of target countries matters as much as individual companies.
If you would like to learn more about investing internationally, feel free to book a video call.
Your international investments need regular portfolio reviews to ensure they line up with your long-term financial goals.
Final Thoughts
A well-rounded investment strategy must include international investing. The impressive performance of international indices compared to US standards since 2025 shows why expanding beyond domestic markets makes financial sense.
Market returns worldwide tell a compelling story about geographical diversification. The S&P 500 has delivered substantial returns recently. However, other markets have shown better performance during different periods. This pattern shows the cyclical nature of global investments.
You need a solid foundation to expand your portfolio globally. Market classifications, currency dynamics, and implementation methods help you alleviate risks. These elements can enhance returns by exposing your investments to economies that grow at different rates.
Your journey into international markets should start small. Expert investors suggest putting just 5-10% of your portfolio into foreign investments. As your confidence grows, you can increase this percentage. ETFs and mutual funds are a great way to get started without knowing everything about foreign companies.
If you would like to learn more about investing internationally, feel free to book a video call.
International investing helps build a more resilient portfolio. This strategy isn’t optional – it’s necessary to direct market volatility, reduce concentration risk, and improve long-term returns. Investment opportunities exist way beyond your home borders. Your portfolio should reflect this global reality.
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