What is Geopolitical Exposure?

Geopolitics: relating to politics, especially international relations, as influenced by geographical factors.

Each Country is ruled by different leaders, has different rules, and has macro-economic events that specifically affect that region. These factors can heavily impact the investments that fall under that jurisdiction.

Having all of your investments under one jurisdiction means that you are undiversified geopolitically, and are heavily impacted by the policies and Marco events that affect the region your investments are concentrated in.

Creating Geopolitical Exposure

You create Geopolitical exposure by owning investments that are headquartered all around the world. Some ways you can do this on EquitySim are:

Purchasing Stocks from different countries:

Purchasing Stocks from different exchanges (under Advanced):

Purchasing Government Bonds from different regions:

How did we do?

What is Industry Exposure?

How to read impact on diversification

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