Amcor Limited (ASX: AMC) shares, Cochlear Limited (ASX: COH) shares and Computershare Limited (ASX: CPU) shares have exposure to global markets in the US Dollar ($) (USD).
Why get exposure to US dollars?
Over the past five years, the Australian Dollar (A$) (AUDUSD) has fallen steeply against the US dollar. If you invested in US dollars, you would be up 31% in that time, for doing nothing.
But having exposure to a foreign currency is also really important from a risk perspective. Academics have shown that investing internationally can substantially lower risk for investment portfolios. It provides an added layer of diversification.
There are also fantastic companies on overseas markets, which are easily bought and sold with a US Dollar shares account.
The easy way to get USD Exposure
Australian investors can get US Dollar exposure on local markets by holding shares of companies with overseas operations.
For example, Amcor is the global packaging business. Around 95% of Amcor's sales are made outside Australia, providing diversification benefits, yet its shares are found on the local ASX.
Another local company doing more of its business internationally is Cochlear, the hearing aids business. Cochlear's implantable hearing aids are sold around the globe, with manufacturing also outsourced.
Finally, Computershare is meaningfully exposed to the US Dollar and US interest rates, both of which appear likely to continue rising. Computershare is the company that stands between shareholders and companies, providing services like share registry and voting. It also holds cash on behalf of companies to pay dividends.
Foolish Takeaway
Opening a US shares account and investing directly in great companies is my preferred way to invest globally. However, if you do not want to fill out the extra paperwork for a US shares account or prefer to keep all your investments on one stock exchange, there are many local companies which offer global exposure.
I think Cochlear is a great business, but I'm not rushing out to buy any of the three companies above, at today's prices.
