Your international regions analysis deals with how the international stock portion of your portfolio is invested. Just as your domestic holdings should be diversified, so should your international holdings. This diversification is measured by broad geographic region.
We believe that international stocks are a valuable diversification tool. Vanguard research has shown that while holding some portion of a diversified equity portfolio in international equities has helped to temper the volatility of U.S. equities, the majority of the benefit was achieved as the international allocation increased from 0% to 20% of total equity exposure, with incremental additional benefit up to 40%.
How we determine international regions
Your international stock holdings are broken down as follows:
- Canada. Non-U. S. North America
- Emerging markets. Asia (excluding Japan, Hong Kong, and Singapore), Africa, Central and Latin America, Emerging Europe. For Vanguard funds, investments in Korea and Taiwan are included in this region.
- Europe. Western Europe and United Kingdom
- Pacific. Australia, Hong Kong, Japan, and Singapore. For non-Vanguard funds, investments in Korea and Taiwan are included in this region.
Vanguard determines the "Stock Markets Outside the U.S." and "Difference From Market" percentages shown in the analysis using the FTSE Global All Cap ex US Index as a proxy for the international stock market.
For Vanguard funds and brokerage holdings, prices and shares used to compute your current account value are as of the previous business day. For investments you entered in Outside Investments, prices may be from today's close, especially if you're viewing them after the market close, which is generally 4 p.m., Eastern time.
Foreign investing involves additional risks including currency fluctuations and political uncertainty.
Data source information
Morningstar, Inc., provided some of the information in this section.
Vanguard is not responsible for the accuracy of data provided by third parties.
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