Home Bias Blues: Investors Really Should Get Out More
The reasons for sticking to local stocks are fewer by the day.
A version of this article appeared in the May 2017 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor here.
If diversification is the only free lunch in investing, investors are leaving a lot on the lunch table. Diversification is measured across a number of dimensions: individual stocks, industries, sectors, and so on. Most investors' portfolios are fairly well spread along these lines. However, when it comes to investing overseas, many decide to ditch diversification at the border.
Ben Johnson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.