How international shares could spell BIG returns

Ready to level up your investing game? It could be time to think beyond Australia.

Our stock market only makes up about 2% of the global market. So if you’re keeping it local, you might be missing out on a whole world of opportunities. Here’s why going global with your investments could change your financial future.

Sticking to the Aussie Market

Investing close to home feels safe - it’s called “home bias,” and it’s pretty common. Many Aussies keep their cash local rather than invest in international markets. Research has found we mostly stay local because we don’t know enough about international markets and we’re also worried about dealing with foreign currencies. And hey, there’s nothing wrong with backing Aussie businesses. But by not looking abroad, you could be missing out on some meaningful gains.

Going global has its perks

Let’s talk about diversification (AKA not putting all your eggs in one basket). Spreading your money across different markets can help protect you when things go south in one place. If the Aussie economy hits a rough patch, overseas markets could still be booming—meaning your portfolio stays in better shape.

But that’s not all. By going global, you get access to industries that aren’t as big here in Australia. Love tech? Think about giants like NVIDIA , Apple, or Microsoft—none of them are listed on the ASX. Investing internationally gives you a front-row seat to some of the most exciting sectors in the world.

Tangle with the risks

Investing overseas has its risks too (just like any investment). The big one? Currency. If the exchange rate shifts, the value of your international shares can change. You’ve also got to think about taxes, which can get a little tricky depending on where you’re investing. Plus, every country has its own rules and political changes that can impact your investments. Australia’s market is highly regulated, but not every market plays by the same rules. That’s why it’s important to understand the risks before diving in.

Decide how you’ll ride the waves

When you invest, whether it's in Australia or overseas, the value of your investments will sometimes go up and down—that’s just how the market works. The important thing is to understand how much risk you’re comfortable taking. Some people are okay with taking big risks in the hope of earning big rewards, while others prefer to play it safer and accept smaller returns. Matching your investing approach to your personal comfort level can help avoid stress when the market drops. By choosing investments that fit your risk tolerance, you can stay calm and focused on your long-term goals, even when things get a little rocky along the way.
 

Find out more about trading International shares with CommSec.

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