International Diversification
- Topics:
- Commercial Lending,
- Global Strategy
- Tags:
- Diversification,
- Finance,
- Financial Accounting,
- Investment,
- Portfolio,
- State Street,
- Volatility
- Source:
- State Street
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Overview: This article describes the various advantages associated with the international diversified portfolio. The idea behind international diversification is that by adding non-U.S. assets to a U.S. portfolio, investors reduce portfolio-level volatility and, thereby, generate better risk-adjusted returns. In any given period, portfolio returns in international markets may be higher or lower than returns generated in an investor's domestic market. However, over long holding periods (including the poor performance of the recent decade) international diversification has delivered on the promise of reducing portfolio volatility and enhancing risk-adjusted returns.
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Format: PDF | Date: Jul 2002 | Pages: 1
