The myICLUB.com Global Diversification Report & Graph shows how much of your portfolio is invested in stocks or other securities by country, as of the date of club's last official valuation.
Investors often like to consider their exposure to securities that are located outside the United States. Global exposure can provide diversification benefits for a stock portfolio, since businesses in other countries are not often subject to the same economic and other risks at exactly the same time as U.S. businesses.
Of course, the location of a company may not correspond directly to where it conducts its business or where most of its revenues and profits are derived. And many mega-cap companies operate globally; in fact, as much as half of the total sales and earnings of S&P 500 companies comes from outside the U.S. Your portfolio may already be globally diversified even if it only owns U.S. businesses!
BetterInvesting does not suggest any targets for global diversification. In fact, owning stocks outside the U.S., whether as American Depositary Receipts (ADRs) or directly in shares, can create issues for investors, such as higher fees, withheld foreign taxes, and increased federal tax reporting requirements.
Countries in the Global Diversification Report are determined by the country set in the club's Security Settings (in Accounting > Securities > Update security settings) for each holding. If the country does not seem correct, the club’s treasurer or administrator can update the entry for any holding in myICLUB.com Securities Settings. If you are unsure about which country a security is registered in, check the Countries listed in myICLUB Stock Quotes/Information (available from the Stock Quote box at the top of each page in your myICLUB.com club) for that security, or contact the company directly.
The text portion of the report is organized as a four-column chart
- Country - The country chosen in Security Settings
- Company - The company name entered in Security Settings
- Market Value - The market value of the security, as of the latest valuation
- % of Club - The percent of the total value of the club, as of the latest valuation. The report can be displayed with or without cash accounts included.
The graphic portion of the report is organized as a circle, with two separate rings.
The inner ring is divided by country. The pieces of the inner ring are sized to correspond to the percent of the portfolio made up of each of the represented countries.
The outer ring shows the percent of the portfolio value for each stock, in each country.
In the graphic portion of the report, placing the pointer over any section will show a pop-up of that section, with the total percent for the area that the pointer is hovering over.