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International Funds

Funds that invest outside the investor’s home country, often used to diversify geographic exposure without including domestic holdings.

International funds are funds that invest outside the investor’s home country.

They are usually used to add geographic diversification without mixing domestic holdings into the same strategy.

How They Differ From Global Funds

The key distinction is scope:

  • international funds usually exclude the home market
  • global funds may include the home market

That difference matters when investors are trying to control home-country concentration in a broader portfolio.

Why Investors Use Them

International funds are often used to:

  • diversify beyond domestic markets
  • gain access to regions or industries with different economic cycles
  • reduce dependence on one country’s market structure
Revised on Monday, May 18, 2026