Developed ex-US equities

August 2025

In this paper, we examine the composition of developed markets outside the United States and compare them to the US, as well as changes over time.

We analyze the case for investing in developed ex-US markets, as well as explore the complex intricacies of these markets including volatility and currency exposure. We conclude by navigating the question of implementation, including the role of active and passive managers. Though the diversification benefits appear to have decreased since earlier decades, investments in these markets can play a role in most equity portfolios.

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