The case for global diversification.
Australia represents approximately 2% of global equity market capitalisation. An investor who limits their portfolio to the ASX is effectively ignoring 98% of the world's investment opportunities. The data above shows that over the 5, 10 and 20-year periods to June 2026, a globally diversified portfolio significantly outperformed a domestic-only approach, in every single period measured. On a A$25,000 investment, the 10-year gap is A$30,725, a portfolio nearly 50% larger simply from looking beyond the ASX.
Source: Vanguard 2026 Index Chart, Andex Charts Pty Ltd, to 30 June 2026. ASX = S&P/ASX All Ordinaries Total Return Index. MSCI World = MSCI World ex-Australia Net Total Return Index (AUD, unhedged). Past performance is not an indicator of future performance. This analysis is general in nature and does not constitute financial advice.
Portfolio Diversification Analysis
The ASX: only 2% of global markets,
and the returns show it.
Annualised total returns in AUD · S&P/ASX All Ordinaries Accumulation vs MSCI World ex-Australia (AUD, unhedged) · to 30 June 2026
5-Year p.a. Return
For Global Investors
ASX 7.4%
World 13.4%
10-Year p.a. Return
For Global Investors
ASX 9.5%
World 14.0%
20-Year p.a. Return
For Global Investors
ASX 7.2%
World 9.1%
Annualised Returnshistorical p.a. performance to date
Growth of A$25,000fully invested, income reinvested
Portfolio Diversification Analysis
The ASX: only 2% of global markets, and the returns show it.
Annualised total returns in AUD · S&P/ASX All Ordinaries Accumulation vs MSCI World ex-Australia (AUD, unhedged) · to 30 June 2026
5-Year p.a. Return
For Global Investors
ASX 7.4%
World 13.4%
10-Year p.a. Return
For Global Investors
ASX 9.5%
World 14.0%
20-Year p.a. Return
For Global Investors
ASX 7.2%
World 9.1%
Annualised Returnshistorical p.a. performance to date
Growth of A$25,000fully invested, income reinvested
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