FYI: Equities not domiciled in the United States accounted for 51% of the
global equity market as of December 31, 2013,1 reflecting a significant
opportunity for portfolio diversification.
Despite the size of non-U.S. markets, U.S. mutual fund investors held, on
average, only 27% of their total equity allocation in non-U.S.-domiciled
funds as of year-end 2013, according to Morningstar.
This paper concludes that although no one answer fits all investors,
empirical and practical considerations suggest a reasonable starting
allocation to non-U.S. stocks of 20%, with an upper limit based on
global market capitalization, subject to the investor’s perspective on
the short- and long-term trade-offs.
Regards,
Ted
http://www.vanguard.com/pdf/ISGGEB.pdf
