{"id":35154,"date":"2026-09-02T17:04:54","date_gmt":"2026-09-02T09:04:54","guid":{"rendered":"https:\/\/www.syfe.com\/magazine\/?p=35154"},"modified":"2026-09-02T17:04:57","modified_gmt":"2026-09-02T09:04:57","slug":"etf-investing-strategy-beyond-us-xtrackers-exus","status":"publish","type":"post","link":"https:\/\/www.syfe.com\/magazine\/etf-investing-strategy-beyond-us-xtrackers-exus\/","title":{"rendered":"Investing Beyond the US is Only Half the Story: Why Your ETF Choice Matters"},"content":{"rendered":"\n
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Global diversification can help investors access developed markets beyond the US \u2014 but choosing the right ETF to deliver that exposure can also affect coverage, costs and after-tax outcomes.<\/h3>\n\n\n\n

The US remains a major part of many long-term portfolios. But for investors looking to diversify globally, investing beyond US equities is only the first decision. The ETF used to access international markets matters too. <\/p>\n\n\n\n

Here\u2019s how Syfe\u2019s move to the Xtrackers MSCI World ex USA UCITS ETF (EXUS) illustrates why both exposure and implementation matter. <\/p>\n\n\n\n

Table of contents<\/h3>\n\n\n\n
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  1. Why investors naturally gravitate towards the US<\/a><\/li>\n\n\n\n
  2. What investing beyond the US can add<\/a><\/li>\n\n\n\n
  3. Choosing the market is only the first decision<\/a><\/li>\n\n\n\n
  4. How Xtrackers EXUS provides developed-market exposure<\/a><\/li>\n\n\n\n
  5. Why Syfe moved Core\u2019s allocation to EXUS<\/a><\/li>\n\n\n\n
  6. What this means for investors<\/a><\/li>\n<\/ol>\n\n\n\n

    Why investors naturally gravitate towards the US<\/strong><\/h2>\n\n\n\n

    For many investors, building a portfolio starts with the US.<\/p>\n\n\n\n

    It\u2019s easy to understand why. Some of the world\u2019s best-known companies \u2014 from technology giants to consumer brands and financial institutions \u2014 are listed in the US. US stocks receive extensive media coverage, while US-listed ETFs are widely available to DIY investors.<\/p>\n\n\n\n

    The US market has also delivered strong long-term performance, particularly over recent years. For investors who have watched US equities lead global markets, maintaining a significant allocation can make sense as part of a long-term investment strategy.<\/p>\n\n\n\n

    But there is a potential trade-off: a portfolio can become heavily concentrated in a single country without the investor necessarily intending it.<\/p>\n\n\n\n

    Even if you own several different US stocks or ETFs, you may still have significant exposure to the same economy, currency, market and business cycle.<\/p>\n\n\n\n

    Investing beyond the US can broaden a portfolio\u2019s opportunity set and reduce its reliance on a single market, although international investing also carries its own risks. <\/p>\n\n\n\n

    What investing beyond the US can add<\/strong><\/h2>\n\n\n\n

    Diversifying internationally is not about predicting which country will perform best next. Instead, the idea is to expand the range of companies, sectors, and economies represented in your portfolio.<\/p>\n\n\n\n

    Developed markets outside the US include Japan, the UK, France, Germany, Switzerland, Australia and Canada. These markets are home to many large and established businesses that may not appear in major US indices. They can also have different sector compositions and economic drivers. For example, some international markets have greater exposure to financials, industrials, materials or consumer companies than the US market.<\/p>\n\n\n\n

    Owning these markets can therefore give an investor exposure to a different mix of businesses and economic cycles.<\/p>\n\n\n\n

    Although many US companies earn revenue globally, they remain US-listed businesses influenced by US valuations, market conditions and index dynamics. Investing directly in developed markets outside the US gives investors access to a different set of companies, markets and economic drivers. <\/p>\n\n\n\n

    While non-US markets might not necessarily outperform US equities, including them can reduce reliance on the performance of any one market while allowing investors to participate in growth across a broader group of developed economies. Once you have decided which markets you want to own, the next question is: how should you access them?<\/em><\/p>\n\n\n\n

    Choosing the market is only the first decision<\/strong><\/h2>\n\n\n\n

    There are two separate decisions when building a portfolio:<\/p>\n\n\n\n