International Portfolio: Definition, Benefits, and Risks
What Is an International Portfolio?
An international portfolio is a selection of stocks and other assets that focuses on foreign markets rather than domestic ones. If well designed, an international portfolio gives the investor exposure to emerging and developed markets and provides diversification.
Key Takeaways
- An international portfolio may appeal to the investor who wants some exposure to the stocks of economies growing faster than the U.S.
- The risks of such a strategy can be reduced by mixing emerging-market stocks with shares in some of the solid performers of industrialized nations.
- The investor might also look at some of the U.S. companies experiencing their fastest growth abroad.
