Going global
Discover how investing internationally could help you diversify your portfolio.
Aussies are seasoned travellers, well-versed in surviving long-haul flights and hunting down the best neck pillows. So, it’s unsurprising that our curiosity for what’s past Australia’s iconic coastline extends beyond taking flights. In fact, the ASX reported a spike in first-time investors choosing to invest in international shares in 20231.
Ready to join the Aussies who are taking their portfolios global? Here’s what you need to know:
Look to distant shores
Investing internationally comes with a range of benefits for investors. Not only do you have access to some of the world’s biggest brands - think big tech and pharma - you can also diversify your portfolio and potentially stabilise your returns. With the Aussie share market only contributing to around 2 per cent of the global share market, looking to international markets to diversify your portfolio means you’re not putting all your eggs in one basket. Diversifying into different markets may also reduce your exposure when there are downturns affecting the local market, providing you with some protection from any one market’s fluctuations.
International companies may also be better represented in new and emerging technologies, like AI and green energy, allowing investors to explore different sectors and industries. As with any type of investing, it’s important that you do your research before you buy.
Go with the flow
One of the biggest risks of investing in foreign markets is currency fluctuations. If you buy shares in the US, for example, you’re buying in US dollars so if there’s a shift in the exchange rate, that will impact the value of those shares. Likewise, international political, socio-economic, and regulatory changes may also affect your returns. You may find yourself riding a few more waves of variation.
Like with any type of investing, you also need to consider the tax implications of buying international shares, so it’s a good idea to talk to your accountant before you hit ‘buy’.
Ready, set, invest
Commsec International lets you invest in 13 different countries, including the US, UK, France, Switzerland, Japan and Singapore. Just open an International Shares Account* and transfer money into your International Wallet and you’re ready to trade.
Your account gives you access to free research tools, real-time data and a 24-hour help desk on US market days.
It pays to brush up on the basics before you dive into international investing. Explore CommSec’s beginners guide to investing or learn how to research stocks. Ready to take your investing global? CommSec’s guide to investing in international markets has everything you need to get started.
1ASX Investor Study 2023 .Past performance is not a reliable indicator of future performance. Investing in overseas markets exposes you to risks including those related to movements in foreign currency exchange rates and market prices. *You can view the International Shares Terms and Conditions, and Financial Services Guide (FSG), and should consider them before making any decision about these products and services.
