The US stock market is the biggest in the world, but investors who ignore other global markets may miss out on a wealth of opportunity.
Stocks of the roughly 17,500 companies trading outside the US represent almost 40% of the world’s $82 trillion equity market.
When determining where to invest, a country’s size may not be a primary consideration. Japan, for instance, is relatively small but accounts for 6% of the world’s equity market value.
Global diversification captures returns from companies around the world and can potentially offset a weak market with stronger returns elsewhere.
Investing globally can deliver more reliable outcomes over time.