Why You Need More International Stocks

For many long term investors, one of the biggest hindrances to their portfolios could be their propensity to root for the home team. Dubbed home-country bias, the majority of us overweight our domestic stock markets. The idea is that we tend to believe that our nation’s equities markets are both safer and will provide higher returns. That simply isn’t true. No single stock market has ruled the roost in terms of returns each and every year. Home-country bias is costing investors some serious long term gains.

Most investors never stray away from their borders when it comes to portfolio construction. That's a shame, because adding exposure to international investments adds several benefits. With the aforementioned ETFs (and their components) investors should find it both easy and advantageous to go global with their investments.

Source: Investopedia

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