A fully flexible way to invest
3 minute read
Home to many of the world’s largest companies, the US is a market that offers plenty of potential for investors, and hence has a place in a diversified investment portfolio. But the hardest choice is deciding which fund to invest in. If you’ve made the decision to invest in an active manager, that decision can be even more difficult. Here, we look at an interesting solution.
Who's it for? All investors
Investment opportunities exist outside of the UK for those investors looking to diversify their investment portfolio. And often the first port of call for UK investors is look across the pond to the US market. As the home to eight out of ten of the largest companies in the world1, the US offers investors access to one of the richest and most diversified mix of companies in the world.
The simplest, and usually cheapest, way to invest in the US market is using a tracker fund (also known as passive investing). We have selected 12 tracker funds and added them to the Barclays Funds List. These tracker funds track the performance of different investment sectors, including the US, at a low cost. All 12 have been selected solely on cost – those featured are simply the cheapest available tracker funds we offer in each sector where a relevant product is available.
The funds included in this selection are reviewed every six months, in June and December. Find out more information on these funds.
While tracker funds are attractive on a cost basis, it’s worth remembering that they will never outperform the market. Tracker funds simply try to track the market. If you’re aiming to outperform, you need to invest in an active fund, where a fund manager selectively chooses which companies to invest in and which companies to avoid. It’s equally important to appreciate that although active funds aim to outperform the market, not all active funds achieve that goal.
Alternatively, to take the hard work out of deciding which fund manager to invest with, Barclays has a fund that does it for you. The Barclays GlobalAccess US Equity Fund is managed by three very different fund managers. Based in New York, Orlando, and Baltimore, they each have a different approach to investing in the shares of companies based in the US. The aim is to deliver more consistent performance, as when one underperforms we hope that the other managers have the potential to deliver.
Not only does the team of professionals at Barclays choose which managers to invest in, they will also decide how much to invest with each one. By balancing the allocation between the three managers, the fund has the potential to perform in all kinds of different economic conditions. This variety of skills and expertise is packaged together in a single product, making the GlobalAccess US Equity Fund an easy way to access a diversified investment in the US stock market.
The Barclays GlobalAccess US Equity Fund is one of 13 Multi-Manager funds on the Barclays Funds List. Find out more information about the multi-manager funds as well as other funds that invest in companies investing in the US. Find out more information on these funds.
Correct at the time of publishing.
To diversify your investment, you may like to consider our own Barclays Ready-made Investments (RMI). The RMI are just one example of a range of diversified funds which allow you to select the level of risk you are most comfortable with. These Barclays multi-asset funds invest in passive funds across a range of asset classes and regions, offering a globally diversified solution for investors. Ready-made Investments are not the only funds that we offer and they won’t be appropriate for everyone.
Past performance of the fund and its manager are not a reliable indicator of their future performance.
We don’t offer personal investment advice so if you’re unsure you should seek that independently.
Funds are designed for the long term so you should only consider them if you can stay invested for at least five years.
These are our current opinions but the future, as ever, is uncertain and outcomes may differ.
Read the Assessment of Value report [PDF, 3.2MB] for funds run by Barclays.
The value of investments can fall as well as rise. You may get back less than you invest. Tax rules can change and their effects on you will depend on your individual circumstances.
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