Your U.S. equity fund is more global than you think

Where a company is listed doesn’t always indicate where its assets are

Gabrielle Dibenedetto 21 March, 2019 | 2:00PM
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Just how “made in America” are U.S. stock funds? It turns out there’s not as much as apple pie and baseball in some of those portfolios as investors might think.

When it comes to assessing the asset-allocation characteristics of a mutual fund, some information, such as market capitalization, isn’t difficult to measure. But when it comes to geographical allocations, investors have been depending on a potentially flawed approach, such as relying on where a company is headquartered or incorporated or where the stock is listed.

With the aim of producing a more accurate picture of a portfolio’s geographic allocation, Morningstar has rolled out proprietary global geographic segment data that enables investors to assess a fund’s geographic exposure based on the revenues streams of the companies it holds.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
3M Co181.38 USD-0.08Rating Inc3,396.61 USD-0.57Rating
Apple Inc146.02 USD-0.55Rating
Berkshire Hathaway Inc Class B277.98 USD-0.05Rating
Booking Holdings Inc2,495.97 USD0.83Rating
Broadcom Inc502.83 USD-0.29Rating
Citigroup Inc71.10 USD0.31Rating
Costco Wholesale Corp463.93 USD2.46Rating
Etsy Inc219.19 USD-2.00
Facebook Inc A349.00 USD0.88Rating
Five Below Inc190.32 USD-0.38Rating
Goldman Sachs Group Inc390.45 USD-0.36Rating
Intel Corp54.10 USD0.13Rating
McDonald's Corp245.49 USD0.29Rating
Microsoft Corp297.19 USD-0.79Rating
Nike Inc B149.05 USD-6.60Rating
Planet Fitness Inc A80.83 USD1.71
UnitedHealth Group Inc405.52 USD-0.62Rating
Walmart Inc143.02 USD0.18Rating

About Author

Gabrielle Dibenedetto

Gabrielle Dibenedetto  Gabrielle DiBenedetto is a data journalist for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. She works to tell stories and create visualizations using Morningstar’s broad spectrum of data and research. Before assuming her current role in 2018, DiBenedetto was a client-services representative for the Morningstar Direct and Morningstar Office platforms. Prior to that, she interned at Boston Magazine, covering startup companies and venture capital. She also interned on the business desk at the Wisconsin State Journal, covering local business development. DiBenedetto holds a bachelor’s degree in journalism and economics from the University of Wisconsin-Madison.

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