If you’ve been investing for a while, you’ve probably heard the saying “Don’t put all your eggs in one basket.” This is diversification, spreading your money across different investments so that no single event or crisis can wipe you out.
But for Filipino investors, diversification shouldn’t stop at investing in different local stocks or putting money in a mix of stocks, bonds, and real estate. The smartest investors today are diversifying globally, tapping into opportunities across international markets, industries, and currencies to build stronger, more resilient portfolios.
Here’s why diversifying globally matters more than ever, especially for Filipino investors.
The Philippine Stock Market vs. Global Markets: A Performance Gap You Can’t Ignore
When comparing the performance of the Philippine Stock Exchange Index (PSEi) to global markets like the S&P 500 in the US, the difference is clear and it highlights why Filipino investors should seriously consider global diversification.
Over the past decade (2014 to 2024), the PSEi has delivered average annual returns of roughly 3% to 4%. That’s barely keeping pace with inflation, meaning many investors who stayed purely in the local stock market saw very modest real returns, if any at all.
In contrast, the S&P 500, which tracks the 500 largest publicly listed companies in the United States, delivered average annual returns of around 10% during the same period. That’s more than double the PSEi’s performance, allowing global investors to significantly grow their wealth over time.
Why Did Global Markets, especially the US, Outperform?
Stronger Economic Growth and Innovation
The US economy, alongside other major global markets, has benefited from continuous innovation, particularly in technology, healthcare, and renewable energy. Many of the world’s most valuable and fastest-growing companies such as Apple, Microsoft, NVIDIA, and Amazon are listed in the US, driving the market’s strong returns. The Philippines, on the other hand, has a much smaller pool of listed companies, and very few are in high-growth sectors like tech.Diversified Economies vs. Domestic-Dependent Markets
Global markets, particularly in developed economies, benefit from broad economic diversity, with thriving sectors ranging from technology and manufacturing to pharmaceuticals and green energy. In contrast, the Philippine economy is heavily dependent on domestic consumption, remittances, and real estate, limiting the sectors driving stock market performance.Better Access to Global Capital
Large international companies have access to vast global capital, partnerships, and supply chains, allowing them to expand faster and more efficiently compared to many Philippine companies, which rely more on local financing and demand.Policy Stability and Global Investor Confidence
Global markets like the US and Europe tend to enjoy stronger investor confidence due to more stable regulations, transparent corporate governance, and better-developed capital markets. The Philippine market, on the other hand, is more vulnerable to local political shifts, regulatory uncertainty, and economic shocks.Faster Recovery After Global Crises
Following events like the COVID-19 pandemic, global markets rebounded faster thanks to aggressive stimulus programs, technological resilience (work-from-home tech boom), and strong corporate earnings. In comparison, the Philippines faced slower economic recovery, weighing down local stock performance.
Sticking solely to the Philippine stock market means limiting your potential returns and tying your financial future to the performance of just one small economy. By diversifying globally, you open your portfolio to stronger, more resilient economies and companies driving innovation across the world.
This isn’t about abandoning local investments, it’s about giving your money a better chance to grow by participating in global growth stories that simply aren’t available in the Philippine market.
The Philippine Peso vs. US Dollar: Why Currency Diversification Matters
When investing, most Filipino investors focus only on returns, but they often forget about the impact of currency value on their wealth. This is especially important for investors who save and invest purely in Philippine Pesos (PHP).
Over the past 10 years (2014 to 2024), the Philippine Peso has steadily weakened against the US Dollar. In 2014, 1 US Dollar was worth around ₱45. By early 2025, the exchange rate climbed to over ₱57 per US Dollar, meaning the peso lost more than 20% of its value against the dollar in just a decade.
What Does This Mean for You?
Weaker Peso = Shrinking Purchasing Power
If your money is all in pesos, its ability to buy goods and services, especially imported products or overseas travel, declines over time. A weak peso makes everything priced in dollars, like electronics, tuition fees abroad, and travel expenses, more expensive.Global Investments Act as a Hedge
By investing in global assets (especially those denominated in US dollars), you’re not just investing for growth, you’re also protecting part of your wealth from the long-term decline of the peso. Even if your investments deliver average returns, currency gains from a stronger US dollar can boost your overall returns.Stronger Global Currencies Reflect Stronger Economies
Currencies like the US Dollar, Euro, and Yen tend to hold their value better over time because they represent larger, more diversified economies with stronger global demand. The peso, tied closely to domestic consumption, remittances, and local policies, is more vulnerable to economic shocks.Global Investors Think in Global Currencies
Wealthy investors and global fund managers rarely concentrate their assets in one currency. Instead, they spread their wealth across strong currencies and global markets to reduce risk and take advantage of opportunities worldwide. Filipino investors can do the same by investing in professionally managed global funds that are already USD-denominated.
If you’re saving and investing for long-term goals, whether that’s retirement, your children’s education, or even global travel, relying purely on Philippine peso investments could limit your future purchasing power.
Adding global investments to your portfolio not only gives you access to better growth opportunities but also helps protect your wealth from the weakening peso, giving your hard-earned money more strength and flexibility in the future.
Don’t Do It Alone, Let Expert Fund Managers Handle It
Many Filipino investors hesitate to invest globally because they assume it’s complicated, expensive, or requires expert knowledge. That’s no longer the case.
There are now professionally managed investment funds, like feeder funds, global equity funds, and multi-asset funds, that give you instant access to global markets. These funds are managed by seasoned fund managers who:
Conduct deep research and analysis to select the best global investments
Continuously monitor global economic and market conditions
Adjust your portfolio to seize new opportunities and manage risks
The best part? You don’t need millions to start.
Many global investment funds available in the Philippines allow you to invest for as little as ₱1,000 or ₱10,000.
Sign up today with Rampver Online and start investing from your laptop or smartphone!
➡️
Click here to sign-up for FREE!Benefits of Global Diversification for Filipino Investors
Here’s a recap of the strongest reasons you should diversify globally today:
Higher Growth Potential: Global markets, particularly in the US, Europe, and emerging Asia, offer better long-term growth opportunities compared to the Philippines.
Protection Against Local Risks: Political instability, regulatory changes, and natural disasters can all hit Philippine markets hard. Global diversification reduces your reliance on any one country.
Currency Diversification: Investing in US dollars, euros, or yen shields you from the depreciation of the peso and strengthens your purchasing power for future expenses.
Access to Global Innovation: Some of the most exciting industries, artificial intelligence, electric vehicles, biotechnology, have little to no presence in the Philippine market. Global investing lets you participate in these high-growth sectors.
Professional Management: Instead of guessing which global stocks to buy, you can rely on experienced fund managers to make those decisions for you.
Affordability and Accessibility: Global investment products are now available at lower minimum investment amounts, making them accessible to everyday investors.
Global Investment Options for Filipino Investors
If you want to invest globally without the hassle of opening foreign accounts or converting pesos to dollars, you can do so through peso-denominated global funds. These funds give you easy access to international markets while you invest using Philippine pesos.
Sun Life World Equity Index Feeder Fund
What it invests in: Stocks from companies across the US, Europe, Asia, and other global markets
Goal: To grow your money over the long term by tracking the MSCI All Country World Index, a global stock market benchmark
Why it’s worth considering: It gives you instant diversification across hundreds of companies worldwide, spreading your risk and increasing your chances of benefiting from global growth
Who it’s for: Investors looking for long-term capital growth and comfortable with market ups and downs
ALFM Global Multi-Asset Income Fund
What it invests in: A mix of global stocks, bonds, and other income-generating assets
Goal: To provide a balance between regular income and long-term growth by investing across different asset classes and global markets
Why it’s worth considering: This fund offers a more balanced approach, combining growth potential from stocks with stability and income from bonds and other assets
Who it’s for: Investors who want global exposure but with reduced risk, ideal if you want to grow your money while earning potential income along the way
BPI US Equity Index Feeder Fund
What it invests in: The 500 largest publicly traded companies in the United States, including major players like Apple, Microsoft, and Amazon
Goal: To grow your money by following the performance of the S&P 500 Index, which reflects the US stock market
Why it’s worth considering: It’s a simple and affordable way to invest in the US market, the world’s largest economy, without needing to open a foreign brokerage account
Who it’s for: Investors focused on long-term growth and interested in investing in leading global companies based in the US
These funds make it easier than ever for Filipino investors to diversify globally, no need to open offshore accounts or handle currency conversion. With just a small initial investment, you can start building a globally diversified portfolio and benefit from opportunities around the world.
A Global Mindset Builds a Stronger Future
For decades, Filipino investors were limited to local stocks, savings accounts, and real estate. But today’s investment landscape offers a world of opportunities, quite literally. By embracing global diversification, you’re not only protecting your wealth from local risks. You’re also giving yourself access to the best ideas, companies, and industries driving the global economy forward.
Don’t leave your financial future tied to just one economy, one currency, or one set of risks. Diversify globally, invest smartly, and let your money work for you across the world.
If you want help exploring global investment options, our team is ready to guide you, whether you’re a beginner or an experienced investor looking to expand your horizons.
Start your investment journey today!
If you want to start your own investment journey, Rampver Financials is here to help!
Rampver Financials is a complete one-stop shop for the best financial products & services in the Philippines!
We help you make your important financial decisions simple & easy.
By listening to your needs & goals, we match you with the best products & services, and guide you throughout your journey so that you can be confident that your financial needs are covered.
Thank you!
You can enjoy the convenience of talking to one financial advisor who is knowledgeable, has access and can service you for all your investment and insurance needs (no matter what company or brand it is)!
Kindly fill out this form and a dedicated Rampver representative shall get in touch with you.