Editorial
Marketing Communication
Much of the world’s attention has focused on the US since Donald Trump was re-elected as president. And for good reason: the land of stars and stripes is an economic, geopolitical, and military superpower.
The US equity market is also a global force1. Its main stock exchanges are bedecked with some of the biggest listed companies the world has ever known, global innovators that are shaping the future and, at the other end of the scale, penny stocks that could offer a mix of affordability and potential. As we outline in our feature article, these unique characteristics have made a US allocation a staple in many investment portfolios.
At Amundi ETF, we offer a selection of core US equity building blocks. This could be a broad exchange-traded fund (ETF) that tries to capture the breadth and depth of US equities, or more granular products that focus on a particular segment such as mega caps or those with a responsible investment slant.
Even if US equities are often considered a key component of an allocation, it’s an old adage that investors should consider balancing their portfolio across asset classes. With this in mind, we assess fixed income ETFs and how bonds act and react to different economic conditions.
We then demystify some technicalities around how ETFs work by explaining tracking error and difference – and why investors should take these dynamics into account when considering an investment.
Finally, we look at the gilded corner of the market in an exploration of the global luxury sector. Most of us probably won’t ever own a French designer handbag, drive an Italian luxury sports car or fly in a private jet bound for Dubai. But global luxury ETFs could offer investors a way to access the exclusive, because these products invest in a range of luxury brands.
It’s important for investors to make decisions aligned with their personal goals, time horizons and risk tolerance. We nevertheless believe this issue of the magazine might give you some insights to help you with your investment choices.
1 Source: World Federation of Exchanges. The New York Stock Exchange and NASDAQ are the world’s largest exchanges by market capitalisation. Data as at 31/8/2024. Broadly speaking, market capitalisation refers to the overall value of company shares listed on an exchange.
