Course 510: What's the Right Foreign Allocation?
The Global Portfolio: A Starting Point
In this course
1 Introduction
2 The Global Portfolio: A Starting Point
3 Ask the Experts

Given the fact that country of domicile doesn't say a lot about where a company actually does business, it's tempting to shelve the foreign versus U.S. allocation question altogether and simply opt for a global markets index fund.

That's a logical approach, particularly for those who are already index enthusiasts. If you buy into the concept of letting the market decide the size of the holdings in your fund, letting the market decide country weightings is a logical extension of that thought process.

And even if you're not ready to cede complete control of your country allocations by investing in a global stock market index fund, the geographic allocations of the global market provide a good starting point for thinking about your own allocations. Consult the allocations of an index such as the FTSE All-World Index, for instance.

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