SMSF investing: 20 most popular international shares

They’re some of the biggest and most dynamic companies in the world, but there’s a catch – they’re all based overseas. Australians who want direct exposure to their growth need to invest in international shares listed on overseas stock exchanges.

There are good reasons for making the effort.

Gaining access to international markets provides opportunities that are not available in Australia, which represents less than 2% of the global share market value.

Australian shares are heavily concentrated in the financial and resources sectors, which means local investors are vulnerable to a downturn or negative sentiment in these industries. What’s more, some of the world’s most dynamic and profitable companies, and industries such as technology and pharmaceuticals, are not well represented on the ASX.

International shares also offer geographic diversity. If the Australian market is underperforming, your international shares may provide a buffer to your local equities.

In the year to 30 June 2025, international and Australian shares performed well (both returned 13.7% including dividends). But international shares did even better in unhedged terms, up 18.6% thanks to the weaker Australian dollar, led by the booming tech sector. 

And there you have it. Currency risk adds another layer of complexity when you invest in international shares. The return on your investments can be influenced negatively (and positively) by the value of the Australian dollar to the currency of the overseas assets you invest in. 

Investors with a relatively small amount of money to invest overseas, or who lack the time or confidence to invest directly, generally opt to invest in international shares via a managed fund or exchange-traded fund (ETF) for low-cost instant diversification.

But some intrepid SMSF members with sufficient funds to build a diversified international portfolio of shares, or the conviction to select certain stocks, are choosing to invest directly.