U.S. investors tend to have a home bias when it comes to investing, which may lead to missed opportunities internationally.
The U.S. comprises a significant portion of the MSCI All-World Index — 64.42% as of 8/30/24, according to MSCI. As the single largest country allocation within the index, international investors must contend with this bias when investing overseas.
Compound the weighting bias with the perception bias built on over a decade of U.S. outperformance, and it may leave many investors with an underweight to international assets. It creates the potential for missed opportunities arising from the changing tides happening in global markets.
This post appeared first on ETF Trends.