Diversification Potential:
Untapped Alpha in Non-U.S. Equities

Market cap-weighted indexes aren’t as diversified as they seem. Even large indexes with stocks from many countries aren’t even close to their potential, given their constituents. We use non-U.S. equity markets to advocate for a closer look at this frequently overlooked alpha source, using a new statistical measure we’ve developed.

In this paper, you’ll learn about:

  • A new concept: diversification potential
  • The return upside in improving diversification – as well as the pitfalls
  • How sophisticated risk controls and implementation can help maintain access to the return while mitigating the risks

Download the paper for valuable insights into diversification.

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