Across the globe, the appetite for U.S. investments is growing.

While there’s $67 trillion in investible assets within the United States, 70 percent of all global wealth is outside the U.S.¹ One of the key strategic functions of my role is to determine how Schwab can provide greater investing access to more individuals around the globe to help improve their financial lives. The good news is that in our work with international clients, we are seeing a growing appetite for U.S. investments abroad, fueled by a few key trends.

I gave an overview of these trends as part of Schwab’s Institutional Investor Day. Here’s a quick recap of what I shared.

We’re seeing the rise of a new, higher-income middle class in many mature and emerging markets and countries around the world. This middle class represents an expanding base of individuals who now carry a personal sense of responsibility to invest and aim to grow their wealth. 

In the seventh edition of Charles Schwab’s China Rising Affluent Financial Well-Being Index, for example, we outline how the Chinese rising affluent’s growing living standards and lifestyle expectations have complicated their financial needs, placing pressure on them to heighten their financial management at the same time as a new financial landscape emerges.

There has been a demographic shift on a global scale wherein fewer workers are supporting a massive base of retirees. As a result, public policy changes are taking place across many countries outside of the U.S, and governments are starting to pull back on some of the social safety nets that were in place before. This puts a lot of responsibility on individuals to determine the type of retirement they want to have, the type of education they may want for their children and how to fund that, and the type of healthcare they want to have later in life. These factors all drive an increased desire for some individuals to invest because more responsibility is falling on the shoulders of individuals. With this personal responsibility comes the need not only for products and services, but for education and support, something Schwab does very well.

The U.S. market is the most liquid, most mature, and most transparent capital market system in the world.  When international investors are deciding where to take their wealth outside of their home jurisdiction, the U.S. is often one of the first places they consider. Many international investors want to take advantage of the growth that is inherent in the great American entrepreneurial spirit. Additionally, you don’t have to live in the United States to value the accessibility, transparency, and great service that comes with investing in the U.S. Those are basic human desires. And when you’re talking about people’s money and financial goals, those things matter even more.

According to Schwab’s 2024 UK Investment Forces Study, the main reasons UK retail investors consider the U.S. as an attractive place to invest are driven by ROI and value. They also expect US-based investments will be even more attractive after the U.S. elections in November 2024.

Another factor fueling both interest and business from international investors is the rise of social media, and the way it makes information so readily available. Individuals are learning how to invest from their smart phones and personal computers, and they understand where to quickly get insights from key opinion leaders around the world. In addition, investors are exposed to brands traded exclusively in the U.S. in their day-to-day lives, driving further awareness and interest. 

However, as noted in the 2024 UK Investment Forces Study, retail investors are turning towards more traditional channels for financial advice, such as professional advisers and investment publications. Celebrity and social media-based finance specialists are declining as a source of influence.

Investors at home and abroad have a lot of choices when it comes to investing in U.S. markets, but we at Schwab believe we’re incredibly well positioned to earn—and keep—their business. 

One thing that truly differentiates us from others abroad is that we export both our products AND our service. Our omni-channel operating model allows clients to engage with us how they want, where they want, with service 24/5 available in multiple languages. We also have virtual and live education offerings, in addition to a self-serve curriculum, to support our clients as they move along their investing journey. What we consider table stakes for many firms in the U.S., like answering our phones in a handful of rings, or zero commission* and zero account minimums, is still quite unique and disruptive internationally. 

We have served international investors since the early years of the firm. In fact, Chuck opened our presence in Hong Kong in 1984 – before a retail branch opened in Manhattan. Today, we are proud to work with clients in over 200 countries globally by taking the very best that Schwab has to offer and exporting it into other jurisdictions. We don’t ask clients to choose between low cost or a high level of client service, and that is a powerful value proposition everywhere. 

We are proud to bring our products and our service to as many clients as possible—big and small—around the world.