International investing can help you diversify your portfolio, but many investors ignore them. This video can help you avoid the problems of home bias in your investment.
Have more questions to find the right mix of international and domestic investment? Our financial advice can help.
Investing is a journey, but it doesn’t have to be a journey that you do alone. We’ve spent 5 years studying millions of vanguard families to bring investors together and share what they’ve learned. One of the most important lessons is that diversity is one of the keys to a successful investment. There are many ways to diversify your portfolio. One way is to choose to invest both domestically and internationally.
But our research shows that many people ignore international investment and choose to focus on companies based in their own country instead. We call it “home bias.”
Experts say it’s a good idea to aim for a certain percentage of international investment to help control the overall risk level of your portfolio. What is that magic number? Vanguard adviser Lauren Weiber says it’s between 30 and 50% of your total stock portfolio.
So what can you do to add more stamps to your portfolio passport? To get started, consider the advice. We have found that investors who receive professional financial advice are more likely to have %% of their total assets (compared to 1 %% of their unskilled colleagues). This is something to think about when planning your next move.
But if you feel more comfortable managing your own investments, keep in mind that international holdings are an important part of a diversified portfolio. Make sure these are part of your financial plan.
All investments are at risk, including the potential loss of money you invest. Investments in stocks or bonds issued by non-US companies are subject to country / regional risks and currency risks.
Diversity does not guarantee gain or protect from loss.