FYI: According to a recent Morningstar report, “shareholders of major U.S. stock market index funds have about 40% foreign exposure, as measured by corporate revenues.”
Does this mean that U.S. investors already have plenty of overseas exposure, eliminating the need to diversify into international stocks?
Let’s go to the scorecard.
The S&P 500 destroyed international stocks since 1970, with $1 growing to $127 in the U.S. and just $56 overseas. Growth of $1, however, is probably the least relevant metric in the entire performance universe. Here’s one reason why- a global portfolio (in black) outperformed “U.S. only” from 1970-2011. The entire spread between $126 and $95 has occurred over the last 8 years.
Regards,
Ted
https://theirrelevantinvestor.com/2019/02/25/regret-adjusted-returns/
