Global Diversification Through Foreign Stocks and ADRs: A 10-Point Checklist
Investors heavily concentrated in U.S. equities are overlooking more than 40% of global market opportunities, exposing themselves to concentration risk. Emerging markets in Asia and beyond are projected to drive economic growth for decades, making international exposure critical for portfolio resilience.
Currency fluctuations, political instability, opaque accounting standards, and complex tax regimes have historically deterred global diversification. American Depositary Receipts (ADRs) offer a streamlined entry point, though understanding the distinction between ADRs and direct foreign ordinaries remains essential.