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.

Next: Ask the Experts >>

Print Lesson |Feedback | Digg! digg it
Learn how to invest like a pro with Morningstar’s Investment Workbooks (John Wiley & Sons, 2004, 2005), available at online bookstores.
Copyright 2015 Morningstar, Inc. All rights reserved. Please read our Privacy Policy.
If you have questions or comments please contact Morningstar.