3 REITs to Buy to Increase Your Global Exposure
Diversification has been called the only true free lunch in investing. Many investors understand that mixing uncorrelated stocks (e.g., technology, real estate, and bank stocks all in the same portfolio) reduces risk over time. But what about geographic diversity? What percent of your portfolio is invested outside your home country?
It's normal to focus on stocks that do business where you live; it's far easier to keep them in your circle of competence that way. But investing in domestic stocks that have a lot of foreign revenue is a good way to keep your portfolio diversified. In the same way, a macro event may affect technology and bank stocks differently, it could stunt the business of a stock's U.S. division while not affecting its European division.
Let's look at three real estate investment trusts (REITs), Realty Income (NYSE: O), Public Storage (NYSE: PSA), and Digital Realty Trust (NYSE: DLR), that can help beef up your global exposure.
Source Fool.com
