Finding the best global funds to diversify your portfolio

8 min Read Published: 24 Nov 2017

A key part of 80-20 Investor is the interaction between members and myself as well as each other. A lot of useful user-generated content can be found within Chatterbox. In this month's Chatterbox one member asked the following question:

Hi Damien
I’ve noticed that global funds have a high proportion of US stocks and their performance charts are very similar to American funds. Why is this ?
Is there a way to get a more even global spread that will be less influenced by the big economies (e.g. US) and have more balanced exposure to all of the world's economies ?

My initial response was:

Part of the reason why global funds tend to be US focused is because of global stock market capitalisation. So US stocks make up a larger proportion of the ‘global stock market’ and therefore funds represent them in those proportions.

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