Investing in international shares
International shares (also known as international securities) are shares in companies located outside your home country. For example, if you're in Australia and you buy shares in a company based in the US, you are investing in international shares.
Investing in these stocks allows you to tap into global markets and economies, offering opportunities for growth in regions that might be expanding faster than your local market.
International trading can carry some additional risks, such as changes in currency, economic or political instability. These factors may impact the performance of these investments.
The largest international stock markets* currently are:
- New York Stock Exchange
- NASDAQ
- Tokyo Stock Exchange
- Shanghai Stock Exchange
- Shenzhen Stock Exchange
- Hong Kong Stock Exchange
- London Stock Exchange
- Euronext
How international shares can work for you
- Diversify your portfolio: Investing in international shares can help offset the risk of your portfolio taking a plunge if markets fall in one country. For instance, if the Australian economy takes a dip, having shares split across global markets may help reduce your overall loss.
- Invest in global companies: Trading in international markets gives you access to more investment options and industries that may not be as big locally. Some examples may include technology stocks in the United States such as Amazon, Meta, Tesla, Microsoft or NVIDIA.
- Currency Diversification: Investments in foreign companies in different currencies could act as a hedge against currency risk in your home country.
- Access to emerging markets: Investing in international shares provides access to countries, such as India or Brazil, which may have faster growing economies than developed markets offering new opportunities for growth
Before investing in international shares, it is important to understand the risks involved. You should conduct appropriate research and consider obtaining independent advice from a professional before making a decision.
Key risks of international shares
- Capital losses: Similarly to domestic markets, capital loss occurs when your share investment declines in value and you may be required to sell them for less than you originally paid, making a loss on your investment.
- Foreign currency volatility: If exchange rates fluctuate, the value of your international shares may also be impacted.
- Geopolitics: Volatility in global politics, such as embargoes, sanctions or regulatory changes, may also cause changes to your portfolio value.
- Tax complexity: Income earned from dividends or capital gains may be taxed both in the foreign market then again in your home country. You should consider obtaining your own independent taxation advice prior to investing.
Things you should know
*Information current as at July 2025
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