Three global funds poised for growth
In the last five years, the FTSE All Share has returned 11%, not including dividends. That compares to 60% growth from the S&P 500. True, if we add in dealing costs for UK-based investors and dividend returns, the difference in performance is probably not quite so stark, but there is no denying that exposure to US markets is good for a portfolio’s performance.
US investors seem to be more tolerant of the growth at all costs strategy which has carried companies like Amazon (US: AMZN) to stardom. That means management can plough returns back into their companies with little consideration for profits, dividends, share buybacks or pensions schemes. It’s a very different attitude to that seen in the UK. So, when it comes to growth, international exposure is key.
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