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The Short Answer

Your Nonstop Flight to Developed and Emerging Markets

We look at different types of international markets and how you can invest in them.

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When many young investors begin investing, they’re often told to consider U.S. stock funds. And for good reason. These funds tend to be low cost, have great diversification, and offer high returns in the long term. However, a well-diversified portfolio would include more than a U.S. stock fund.

Consider diversifying with international stocks, says Morningstar’s director of personal finance Christine Benz. The consensus view is foreign stocks are more attractively valued than domestic stocks now, and on average, they offer higher dividend yields compared with U.S. stocks. There are also great companies located abroad you otherwise wouldn’t have exposure to.

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Sachin Nagarajan does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.