What is one advantage of including international investments in a portfolio?

Including international investments in a portfolio offers the potential for higher returns due to several factors. International markets may experience growth and investment opportunities that are not available in domestic markets. For example, certain economies may be in different stages of growth, allowing investors to capitalize on emerging markets or sectors that are expanding faster than those in their home country.

Additionally, international investments can expose a portfolio to industries or companies that may be undervalued relative to those in the investor's domestic market, creating opportunities for significant gains. This broader access can enhance overall portfolio returns, as it allows investors to diversify their sources of potential income and appreciate the benefits of economic growth on a global scale.

Incorporating a range of international assets also helps exploit differing market dynamics and cycles, which may yield higher returns than those available solely through domestic investments.