The United States accounts for only about half of the world’s stock-market capitalization. Yet U.S. investors continue to have too little exposure to foreign stocks and may potentially miss out on growth opportunities in achieving their financial goals.
Oppenheimer International Growth Fund invests in stocks of well-established businesses overseas that, in the management team’s view, have sustainable competitive advantages and stand to benefit from long-term structural growth trends in such areas as mass affluence, technology, business restructuring and aging.
1Source: FactSet, as of 12/31/16. Weights in MSCI All Country World Index, by region.
2Source: Strategic Insight, as of 12/31/16. Includes U.S. Open-End and ETF funds ex-money market and fund of funds assets. World stock is split to reflect 12/31/16 asset allocation: 48% into U.S. Category Group, 48% into International Developed Category Group and 4% into Emerging Markets Category Group. U.S. Domiciled Fund and ETF Equity Assets, by region.
3Price-to-Earnings (P/E) Ratio: A valuation ratio of a company’s current share price compared to its per-share earnings.
Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes and geopolitical risks. Emerging and developing market investments may be especially volatile. Due to the recent global economic crisis that caused financial difficulties for many European Union countries, Eurozone investments may be subject to volatility and liquidity issues. Investments in securities of growth companies may be volatile. Small and mid-sized company stocks are typically more volatile than that of larger, more established businesses, as these stocks tend to be more sensitive to changes in earnings expectations. It may take a substantial period of time to realize a gain on an investment in a small or mid-sized company, if any gain is realized at all.
Diversification does not guarantee profit or protect against loss.