Portfolio allocation to US vs International Equities
16th July, 2020
The below chart illustrates equity allocations by 60+ digital wealth management portfolios between US and international stocks.
It shows that, except a handful of these portfolios, most have maintained a strong tilt towards US equities.
In fact, digital portfolios with higher allocations to large cap US equities have consistently outperformed more internationally diversified portfolios.
(Chart Source: The Robo Report, Backend Benchmarking)
Given the strong relative performance of US stocks over the past few years, robo advisors have been nimble enough to construct their portfolios accordingly. Hopefully they will show the same agility and safeguard their clients when this trend changes.
Does your managed or personal portfolio have adequate allocation to US equities, to have benefited from this strong run?