Investing term

What is Region?

A geographic grouping of equity exposure — US, developed-ex-US, emerging markets, etc.

Region, in investing, is a geographic grouping of stock exposure — US, developed-ex-US, emerging markets, and so on. Spreading across regions diversifies away from any single country's fortunes, since no one market leads forever. A globally diversified portfolio deliberately holds several regions, accepting that some will lag in any given year so none can sink the whole.

For example

A global fund splits across US, European, Japanese, and emerging-market regions — so a slump in one country is cushioned by strength elsewhere.

Region is taught hands-on in Stage 16 — Portfolio Construction.

See the lesson →

Related terms

Broad ETFAn ETF that tracks a wide market index — total US stock market, total international, total bond market.Concentration riskThe risk that one position, sector, or country represents enough of the portfolio that a single bad outcome dominates returns.Position sizeThe fraction of the total portfolio invested in a single holding.RebalanceSelling some of what's grown most and buying more of what's grown least to return the portfolio to its target weights.
← Back to the full glossary