Some people have a desire to travel the world, while others would prefer to see the sights closer to home. There’s no right answer. It largely depends on your personality.
When it comes to investing, some people would like to see their investments positioned overseas. Others see plenty of opportunities closer to home.
However, with investing, there’s more of a correct approach than a “right answer.” And it’s largely going to depend on your goals, time horizon, and risk tolerance.
“Never invest just to invest! Only invest to achieve something—a goal or to meet a need,” writes Mick Owens in Diamond of Life: The Five P’s of Success and Significance. “Remember to hold everything with loose hands because you are only a vessel—a steward for God’s Kingdom.”
Did You Know: 41% of the total revenue generated by Standard & Poor’s 500 companies comes from overseas markets. While all the companies are listed on major U.S. stock exchanges, many are multinationals with global operations.1
Decisions, Decisions
One of the most important concepts to understand is the difference between international and global investments.
Generally, an international investment only invests in companies outside of the U.S. By contrast, a global investment can invest in U.S. companies as well as international firms. So, while they both sound like they can invest in different countries, a global investment may own a number of very familiar names close to home.2
Two types of International Markets
Developed markets are in countries that have more established infrastructures and industries. They also have economies that are considered secure and promote a sound standard of living. France, Germany, and the U.K. would be considered developed markets in Europe. Closer to home, Canada would fall into this category. Japan and Australia also are considered developed markets.
Emerging markets are countries that have less-stable economies, which can lead to less developed capital markets. Examples of emerging markets include China, India, Egypt and Mexico. It’s important to remember that as emerging economies transition to developed markets, they may experience periods of rapid growth.
Many Ways to Invest3
If an international investment is a fit for your portfolio, we often guide people toward a mutual fund or an exchange-traded fund (ETF). There are pros and cons with mutual funds and ETFs, but both types of investments can be a bit easier to manage for most investors. Some overseas companies trade on U.S. stock exchanges through American Depository Receipts, which also might warrant a second look in some instances.
International and global mutual funds are sold only by prospectus. Individuals are encouraged to consider the charges, risks, expenses, and investment objectives carefully before investing. A prospectus containing this and other information about the investment company can be obtained from your financial professional. Read it carefully before you invest or send money.
Word of Caution
One of the most important factors to know about international investments is that foreign markets carry additional risks, such as differences in financial reporting standards, currency exchange rates, political risks (which are unique to specific countries), and foreign taxes and regulations. This is true for both stock and bond investments. As a result, markets may have greater share price volatility from time to time.
- ApolloAcademy.com, 2026
- JPMorgan.com, 2026
- InvestorVanguard.com, 2026
