By overweighting their portfolios with U.S. equities, many U.S. investors may be missing out on potentially attractive global growth opportunities that may help them achieve their financial goals.
Non-U.S. equities account for about half of the world’s stock-market capitalization, yet U.S. investor portfolios are heavily allocated- more than 70% – to domestic stocks. Additionally, the number of companies outside the U.S. that have market capitalizations of at least $1 billion is more than double the number in the U.S. With the current price-to-earnings ratios of non-U.S. stocks below their average over the past 20 years, international stocks are attractively priced and may have room to grow.
Oppenheimer International Growth Fund may help investors gain exposure to investing overseas in companies with the potential for long-term growth. The Fund invests in stocks of well-established businesses that its management teams believes have sustainable competitive advantages and will benefit from trends, including mass affluence, new technologies, business restructuring, and aging, that can fuel long-term growth.
1 Source: FactSet, as of 12/31/16. Weights in MSCI All Country World Index, by region.↩
2 Source: Strategic Insight, as of 12/31/16. Includes U.S. Open-End and ETF funds ex-money market and fund of funds assets. World stock is split to reflect 12/31/16 asset allocation: 48% into U.S. Category Group, 48% into International Developed Category Group and 4% into Emerging Markets Category Group. U.S. Domiciled Fund and ETF Equity Assets, by region.↩
3 Price-to-Earnings (P/E) Ratio: A valuation ratio of a company’s current share price compared to its per-share earnings.↩
These views represent the opinions of OppenheimerFunds and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the open of business on the publication date, and are subject to change based on subsequent developments.