Non-US Stock Exchanges in the World
5 min read
By Educational Department, ETF Insider

Non-US Stock Exchanges in the World

We all know how big and popular US stock exchanges are, especially the NYSE and NASDAQ. However, as the global economy is increasingly interconnected, many investors are now searching for new opportunities to diversify their portfolios beyond the US markets.

In this article, we will highlight the five most popular non-US stock exchanges with a short background for each, their market capitalization, their respective performance over the past five years, and even their top three notable stocks listed on each exchange.

1. London Stock Exchange ($LSE)

a) Market Capitalization: $3.6 trillion

b) 5-Year Performance: +16%

c) Top 3 Notable Stocks:

HSBC Holdings (HSBA)

Royal Dutch Shell (RDSA)

Unilever (ULVR)

First and foremost – perhaps one of the most prominent globally – the London Stock Exchange, which is established in in 1801, is clearly one of the oldest stock exchanges in the world. LSE is located in the City of London and is part of the London Stock Exchange Group, including Borsa Italiana and Turquoise.

2. Shanghai Stock Exchange ($SSE)

a) Market Capitalization: $5.4 trillion

b) 5-Year Performance: +47%

c) Top 3 Notable Stocks:

Kweichow Moutai (600519.SS)

Industrial and Commercial Bank of China (601398.SS)

Ping An Insurance (601318.SS)

Second, founded in 1990, the Shanghai Stock Exchange is the largest stock exchange in the whole of China. Currently, it operates under the direct supervision of the China Securities Regulatory Commission (CSRC).

3. European New Exchange Tech ($EURONEXT)

a) Market Capitalization: $5.6 trillion

b) 5-Year Performance: +25%

c) Top 3 Notable Stocks:

LVMH Moët Hennessy – Louis Vuitton (MC.PA)

TOTAL SE (FP.PA)

Sanofi (SAN.PA)

Third, formed in 2000, Euronext is the leading pan-European exchange that operates multiple markets in Amsterdam, Brussels, Dublin, Lisbon, Oslo, and even Paris.

4. Hong Kong Stock Exchange ($HKEX)

a) Market Capitalization: $5.9 trillion

b) 5-Year Performance: +24%

c) Top 3 Notable Stocks:

Tencent Holdings

AIA Group

China Construction Bank

Fourthly, established in 1891, HKEX is one of the world's largest exchange operators. HKSE is also the primary exchange in Hong Kong and serves as a "gate" between China and international markets.

5. Tokyo Stock Exchange ($TSE)

a) Market Capitalization: $6.2 trillion

b) 5-Year Performance: +22%

c) Top 3 Notable Stocks:

Toyota Motor Corporation (7203.T)

SoftBank Group Corp. (9984.T)

Keyence Corporation (6861.T)

Last but not least, founded in 1878, the Tokyo Stock Exchange is the largest stock exchange in Japan and the third-largest in the world by market capitalization. Moreover, TSE has a strong global presence and also plays a crucial role in the grander Asian financial market.

Conclusion

In a nutshell, these five exchanges play a crucial role for both retail and institutional investors looking to diversify away from the US. Nevertheless, it is challenging to examine these exchanges one by one to determine which is the best fit for you.

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Fortunately, there are now sophisticated portfolio management tools such as ETF Insider that help us analyze and properly allocate international ETFs such as the Vanguard Total International Stock ETF ($VXUS). Hence, helping us to avoid common investor pitfalls such as over and under-diversification, overexposure, and even fund overlaps.

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