Question

Discuss the benefits and risks of investing globally versus focusing only in the domestic U.S. market.

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Considering the topic of this project and the matter of International Portfolio Diversification, there are several things that need to be examined. Given the available data, enclosed excel sheet, general overview and the ETF returns table, I will try to give my opinion based on that and try to “connect the dots” using the research – based knowledge.

First of all, we can see that management fees represented in the domestic U.S. market are lower than the same fees in other markets. For example, doing business in emerging markets countries can significantly affect the return you achieve over some particular time. That can be understandable, because containing the level of fees is often related to absence of purchasing power of the individual. On the other hand, critics will say that U.S. market can sometimes be hostile, especially when it comes to ETF investing. United States has the largest share in the worldwide global market, so investing globally, outside the U.S. can be challenging and in some cases very profitable....

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