Hmmm. So I don’t think more global exposure = more diversified. What you should be aiming for is investing in each country/region in proportion to it’s share of the market.
Consider the following situation
The USA is 30% of global markets
A global index fund invests in world equities, putting 30% of it’s money in the US market
The US market is actually also 50% invested abroad
Hence the index fund is really only putting 15% (30/2) in the US and is underweighted towards the US
Hmmm. So I don’t think more global exposure = more diversified. What you should be aiming for is investing in each country/region in proportion to it’s share of the market.
Consider the following situation
The USA is 30% of global markets
A global index fund invests in world equities, putting 30% of it’s money in the US market
The US market is actually also 50% invested abroad
Hence the index fund is really only putting 15% (30/2) in the US and is underweighted towards the US