International Portfolio

DEFINITION of 'International Portfolio'

A grouping of investment assets that focuses on securities from foreign markets rather than domestic ones. An international portfolio is designed to give the investor exposure to growth in emerging and international markets and provide diversification.

BREAKING DOWN 'International Portfolio'

International portfolios allow investors to further diversify their assets by moving away from a domestic-only portfolio. This type of portfolio can carry increased risk due to potential economic instability stemming from emerging markets, but can also bring increased stability through investments in industrialized and more stable markets.


Due to the integration of global financial markets, many companies already have operations in more than one country.

RELATED TERMS
  1. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment ...
  2. Managed Futures

    An alternative investment strategy in which professional portfolio ...
  3. Portfolio

    A grouping of financial assets such as stocks, bonds and cash ...
  4. Portfolio Weight

    The percentage composition of a particular holding in a portfolio. ...
  5. Foreign Fund

    A mutual fund, closed-end fund or exchange-traded fund that invests ...
  6. International Clearing System

    A trading system used when a futures contract transaction is ...
Related Articles
  1. Mutual Funds & ETFs

    4 Ways to Get International Exposure in Your Portfolio

    International investing provides diversification, which is needed these days. When it comes to investing in foreign stocks, there are lots of options.
  2. Investing Basics

    Concentrated Vs. Diversified Portfolios: Comparing the Pros and Cons

    Examine the relative advantages and disadvantages of utilizing either a concentrated or a diversified investment portfolio strategy.
  3. Economics

    Cautionary Signs For International Investors

    "Going global" is a fashionable investing style, but investors should know the risks.
  4. Professionals

    The Workings Of Equity Portfolio Management

    Achieve analytical efficiency by applying your evaluation to a key set of stocks.
  5. Options & Futures

    Investing 101: Portfolios And Diversification

    It's good to clarify how securities are different from each other, but it's even more important to understand how their different characteristics can work together to accomplish an objective. ...
  6. Stock Analysis

    Going Global

    Most investors never stray away from their home nations when it comes to portfolio construction.
  7. Mutual Funds & ETFs

    4 Misconceptions That Sink Emerging Market Investors

    As an emerging markets investor, there are some traps to be aware of. Learn what to watch out for.
  8. Forex Education

    The 3 Biggest Risks Faced By International Investors

    Investing internationally is a great way to diversify your portfolio, but you need to know the risks.
  9. Financial Advisors

    How to Help Clients See Value of Diversification

    One of an advisor’s most important jobs is getting clients to understand the value of diversification. Here are some tips that will help.
  10. Insurance

    The Dangers Of Over-Diversifying Your Portfolio

    If you diversify too much, you might not lose much, but you won't gain much either.
RELATED FAQS
  1. How is portfolio variance reduced in Modern Portfolio Theory?

    Learn about modern portfolio theory, specifically what it asserts about asset allocation and managing portfolio risk through ... Read Answer >>
  2. What kind of stocks should I buy (Ex. Oil, Gold, Consumer, Bio, or Tech)?

    How many stocks should be in a buy and hold strategy? At what percentage gain should I start taking real prof... Read Answer >>
  3. What effect has globalization had on international investments?

    Learn how globalization impacts international investment and transforms economies around the world. Understand the implications ... Read Answer >>
  4. What will happen to my U.S.-based stock portfolio if the U.S. dollar substantially ...

    The effect of a significant depreciation in the value of the U.S. dollar on the value of an investor's U.S-based portfolio ... Read Answer >>
  5. How are negative correlations used in risk management?

    Learn about risk management and how negative correlations between assets are used to diversify and hedge risk associated ... Read Answer >>
  6. What percentage of a diversified portfolio should be invested in the telecommunications ...

    Learn how variables such as risk tolerance and investing strategy determine how much of a diversified portfolio is invested ... Read Answer >>
Hot Definitions
  1. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  2. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  3. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  4. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  5. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center