- All our strategies measure up to benchmarks
- Thoughts on tactical portfolio flexes
Year-to-date, UK investors holding an S&P 500 exchange traded fund (ETF) have done very well. Assuming a currency hedged position, they’re sitting on 15 per cent total returns for 2024, which is a tidy reward for taking on the risk of investing in shares.
Equities – stocks and shares – are the backbone of any investment portfolio with the US market in particular having been a consistent way to grow wealth ahead of inflation down the years. There is a trade-off, however: depending on their risk tolerance, investors will dilute some of the long-run smoothed out returns that shares make possible in order to limit exposure to the psychologically uncomfortable peak-to-trough falls in stock markets.
