Don’t always bet on the home team.
BROADEN YOUR HORIZONS TO WORLDWIDE ...

DON’T ALWAYS BET ON THE HOME TEAM

Holding all of your savings in local assets may seem like a safe bet, but by favoring local products you may be limiting your investment return opportunities. International exposure is crucial for a truly diverse portfolio, and iShares ETFs offer an excellent tool to seize worldwide opportunities.

What is international investing?

International investing is an investing strategy that involves selecting global investment instruments as part of an investment portfolio. This ensures that the investment risk is distributed across different geographies and sectors, reducing overall risk and while maintaining an adequate level of expected return.

Why invest internationally?

In Latin America many people prefer to keep their savings in cash or invest in domestic stocks or bonds that leave them exposed to local market volatility. This phenomenon is known as "national bias” and is in stark contrast to how sophisticated investors across the globe invest. As economic growth slows in Latin America and interest rates decrease, investors are missing out on potential sources of return by not investing internationally.

Sometimes when it’s raining in Mexico, the sun is coming out in Germany

Three portfolios. Three different levels of international investment.
Three reactions to historical market shocks.

Sometimes when it’s raining in Mexico, the sun is coming out in Germany.

Mexico local exposure comprised of the following:
FOUSA05PVQ –S&P/BMV IPC PR MXN, weight: 40
Mexico JPM GBI EM – Mexico JMP GBI EM, weight: 60
International stocks comprised of:
ACWI – MSCI All Country World Index, weight: 100

Risk to date

Chart showing returns by years (EA) according to investment horizon.

 

Source: Morningstar Direct, MPI Stylus from January 4, 2010 to May 31 2019 in MXN. Data start date is based on index inception.
Cash/risk free rate: Mexican Nuevo Peso Benchmark: Mexico Local Exposure. Rebalance Frequency: Monthly.
This information is strictly for illustrative and educational purposes and is subject to change. This information does not represent the actual current, past or future holdings or portfolio of any BlackRock client. All returns are net of fees. Past performance does not guarantee future results.
Index returns are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged, and one cannot invest directly in an index.
All hypothetical graphics based on index performance only, not on fund performance.

Why iShares for international investing?

Quality

Quality

Invest in the long-term growth of companies across different sectors and geographies.
Low-cost

Low-cost

iShares offers a set of quality alternatives at a competitive price.
Access

Access

A suite of international products for your portfolio.

Build an international strategy

With iShares international ETFs, investors can create a low-cost portfolio with broad exposure across all equity markets.

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