 Domestic international portfolio diversification gains in the case of US investorsSlah Slimani
Post-Print from HAL Abstract: We assess through this study, the advantages of domestic international portfolio diversification for American investors, through the holding of securities relating to foreign funds traded on the American capital market. We concluded that these home investors derive benefits from their indirect international diversification by saving all the trading and transaction costs of direct international diversification in the financial markets of home countries. However, these benefits derived remain dependent on the degree of exposure of the securities held to the risks of the US stock market. On the other hand, it seems that the economic cycle and the American stock market indices have no influence on the returns of these foreign securities. On the contrary, these foreign securities follow their underlying country indices (country index) and are subject to financial disturbances of their financial markets and their home countries' economic cycles. Keywords: International home diversification; financial markets; foreign exchange traded funds; GARCH; volatility; DCC; MVS Test (search for similar items in EconPapers) Published in Academia Journal of Educational Research, 2022, 10 (1) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03938794 Access Statistics for this paper More papers in Post-Print from HAL |
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