Foreign Stocks in US: How to Invest Smartly in Global Markets

When you buy foreign stocks in US, shares of companies based outside the United States that trade on American exchanges or through ADRs. Also known as international equities, they let you own pieces of businesses like Toyota, Nestlé, or Tencent without opening a foreign brokerage account. This isn’t just about spreading your money around—it’s about reducing the risk that comes from betting everything on one economy. If the U.S. market dips, foreign markets might be climbing, and that balance can save your portfolio from big losses.

Adding global equities, stocks from companies in developed and emerging markets outside the U.S. to your portfolio isn’t a luxury—it’s a practical move backed by decades of data. Research from Vanguard and Morningstar shows that portfolios with 20% to 40% in international stocks tend to have smoother returns over time. But here’s the catch: currency risk, the chance that exchange rates will hurt your returns when you convert foreign profits back to dollars can turn a good stock into a bad investment overnight. That’s why many investors use hedged ETFs or stick to companies with global revenue streams that naturally balance currency swings.

You don’t need to pick individual foreign stocks to get exposure. Most U.S. investors use ETFs like VXUS or IEFA, which bundle hundreds of international companies into one low-cost fund. These funds handle the complexity—tax forms, currency conversion, foreign brokerage rules—so you don’t have to. And because they’re traded on U.S. exchanges, you can buy them with your existing brokerage account, just like Apple or Tesla.

But here’s what most people miss: owning foreign stocks isn’t about chasing the fastest-growing economy. It’s about avoiding home bias—the habit of sticking to U.S. companies because they feel safer. In 2023, U.S. stocks made up nearly 60% of the global market, but that doesn’t mean they should make up 60% of your portfolio. The truth? The world is bigger than America, and your money should reflect that.

Some of the posts below show you exactly how to spot the right international funds, how to rebalance when foreign markets move differently than U.S. ones, and how to avoid the emotional traps that make investors sell low and buy high. You’ll also see how currency hedging works in practice, why some investors avoid emerging markets altogether, and how a simple 25% allocation can change your long-term results. This isn’t theory—it’s what real investors are doing right now to build portfolios that last.