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5 handpicked stocks

Global Diversification: Could It Reduce Local Risk?

As Brazil's economy faces concentrated risks, diversifying abroad may help manage portfolio volatility. This basket provides exposure to the US/EU-listed financial infrastructure, such as global asset managers and index providers, that enables international market access.

Author avatar

Han Tan | Market Analyst

Published on October 10

Your Basket's Financial Footprint

Market cap breakdown for the basket showing concentration in large-cap holdings.

Key Takeaways for Investors:
  • Large-cap dominance generally implies lower volatility and returns that tend to track broad market performance.
  • Suited as a core portfolio holding, offering diversified exposure rather than serving as a speculative trade.
  • Likely to deliver steady, long-term appreciation rather than rapid, short-term explosive gains.
Total Market Cap
  • BLK: $180.78B

  • SPGI: $148.87B

  • MCO: $88.35B

  • Other

About This Group of Stocks

1

Our Expert Thinking

Brazilian investors face concentration risks from domestic market exposure tied to specific sectors and local economic cycles. Rather than picking individual foreign stocks, this strategy invests in the foundational companies that power global capital markets - the asset managers, index creators, and exchanges that enable worldwide investing.

2

What You Need to Know

This group focuses on US and EU-listed financial infrastructure companies that form the backbone of international investing. These firms include major ETF sponsors, global benchmark creators, and the exchanges where international assets are traded. It's a way to gain indirect exposure to worldwide economic growth through essential market infrastructure.

3

Why These Stocks

These specific companies were selected because they represent the key enablers of global asset allocation. Each plays a distinct role - from global asset managers offering international funds to market data providers creating benchmarks like the S&P 500, plus major exchanges and custodians integral to international capital markets.

Why You'll Want to Watch These Stocks

🌍

Global Market Gateway

These companies are the gatekeepers to international investing, giving you exposure to worldwide economic growth without the complexity of picking individual foreign stocks.

🛡️

Portfolio Protection Strategy

Diversifying beyond Brazil's concentrated market risks could help smooth out volatility and build a more resilient investment portfolio for the long term.

🏗️

Financial Infrastructure Powerhouses

You're investing in the essential plumbing of global finance - the asset managers, index creators, and exchanges that make international investing possible for millions worldwide.

Get the full story on this Basket. Read our detailed article on its risks and potential.

Read Full Insight

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