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 Co165.55 USD-0.52 Inc3,104.25 USD-0.74
Apple Inc127.14 USD-1.37
Berkshire Hathaway Inc Class B233.49 USD-0.65
Booking Holdings Inc2,119.23 USD-2.90
Broadcom Inc445.85 USD-1.38
Citigroup Inc64.23 USD-6.93
Costco Wholesale Corp362.16 USD-0.05
Etsy Inc204.42 USD-3.36
Facebook Inc A251.36 USD2.33
Five Below Inc189.81 USD-2.43
Goldman Sachs Group Inc301.01 USD-2.23
Intel Corp57.58 USD-2.82
McDonald's Corp209.91 USD0.68
Microsoft Corp212.65 USD-0.17
Nike Inc B140.72 USD-0.41
Planet Fitness Inc A81.09 USD-1.34
UnitedHealth Group Inc351.30 USD0.22
Walmart Inc144.64 USD-1.59

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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