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The Global Reality of "Domestic" Investing

03/25/2015

40% of your “U.S.” exposure is from overseas markets. Economic globalization has accelerated over the years. Take the classic proxy for the U.S. market: the S&P 500®. These biggest "American" companies actually now earn a good portion of their business abroad. For some companies, it's most of their revenues.

The question nowadays isn't whether you should "go global" but—given that it's unavoidable—how you choose to assemble your overseas exposure. Do you take what the index gives you or make a more deliberate global allocation?

S&P 500 Revenue Sources 5120

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1Total does not equal 100% because revenue source data from some companies is incomplete.
Source: FactSet. Companies shown are for illustrative purposes only and are not representative of any Virtus strategy.
The S&P 500® Index is a free-float market-capitalization weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested.
The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Past performance is not indicative of future results.

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Past performance is not a guarantee of future results.

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.