Is your portfolio invested in the right areas?

Every investor should have some overseas exposure.

a woman

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The ASX is a good stock exchange and has a wide variety of shares on its register.

The problem is that so many of our big businesses are focused just in Australia (and New Zealand).

If Australia goes through a downturn then all the businesses with mostly local revenue could have a tough time.

I think most Australians have far too little investments that are focused overseas. You don't even need to leave the ASX to do it:

ASX shares with foreign earnings

There are quite a few good quality shares on the ASX that earn most of their revenue overseas.

Shares like Altium Limited (ASX: ALU), CSL Limited (ASX: CSL), Cochlear Limited (ASX: COH) are all strong ASX-listed companies.

Listed investment companies and trusts

You could buy shares in businesses that do all the investing for you in overseas-listed shares.

Hunter Hall Global Value Ltd (ASX: HHV) and Templeton Growth Fund Ltd (ASX: TGG) are two of the best performing and well-known on the ASX.

Exchange-traded funds (ETFs)

Some of the most popular ETFs are also the best because of how cheap they are. The lower the management costs, the more money that stays in your investment.

Vanguard US Total Market Shares Index ETF (ASX: VTS) and BETANASDAQ ETF UNITS (ASX: NDQ) have some of the most exciting technology businesses in the world as their top holdings.

Directly own overseas shares

Or, you could simply go direct to a North American or European stock exchange and buy the shares yourself.

Top businesses like Alphabet Inc and Berkshire Hathaway are just two of the many top-quality businesses that you could snap up. Bruce Jackson has even linked you to a new brokerage firm that offer trades for $0 for US shares.

If owning individual businesses is your thing then this is the perfect place to do it.

Foolish takeaway

I think doing any of the above ways to get overseas investments is a great choice. Doing more than one could be an even better way of doing it.

Motley Fool contributor Tristan Harrison owns shares of Altium. The Motley Fool Australia owns shares of Altium and BETANASDAQ ETF UNITS. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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