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

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 Co146.44 USD0.43
Amazon.com Inc2,436.88 USD-0.40
Apple Inc318.89 USD0.64
Berkshire Hathaway Inc B174.93 USD-0.01
Booking Holdings Inc1,631.30 USD2.23
Broadcom Inc276.65 USD0.67
Citigroup Inc44.10 USD-2.00
Costco Wholesale Corp302.43 USD0.15
Etsy Inc77.48 USD4.27
Facebook Inc A234.91 USD1.52
Five Below Inc99.55 USD2.31
Goldman Sachs Group Inc179.93 USD-0.09
Intel Corp62.26 USD0.44
McDonald's Corp184.41 USD-0.36
Microsoft Corp183.51 USD0.04
Nike Inc B93.75 USD-0.54
Planet Fitness Inc A62.96 USD2.62
UnitedHealth Group Inc289.94 USD1.06
Walmart Inc124.33 USD-0.53

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.