To continue using this website, please tell us a
little about yourself:

This site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about cookies on the website and how to delete cookies, see our Privacy and Cookie Policy.

I accept the FE Trustnet cookie policy

For more information Click here

Login

Register

It's look like you're leaving us

What would you like us to do with the funds you've selected

Show me all my options Forget them Save them
Customise this table

What is North America?


This refers predominantly to the US, the largest economy in the world and the driver of global growth, but also encompasses Canada.


North American funds largely invest in the US, although some also have holdings in Canada. Both economies are members of the North American Free Trade Agreement [NAFTA], but different currencies and cultures make them different animals from the point of view of the investor.

ALT_TAGThe USA remains the largest economy in the world and is widely believed to be the driver of global growth. Recently its relationship with China has been considered vital, with the latter country providing cheap labour and goods for America.

However, many experts remain confident that the country’s powers of self-regeneration will be enough for it to power ahead under its own steam, with cheap gas from fracking techniques giving a huge boost to the domestic economy.


Why invest in the US?

The US is the most dynamic and powerful economy in the world and home to most of the cutting-edge businesses that are revolutionising the world through the internet economy.

Many experts say that the US should be an essential part of any portfolio and point out that the leading US companies are global multinationals, meaning that North American funds offer a good way to capture global growth.

The majority of commentators think that the country will be the first to recover from the financial crisis – if the recovery hasn’t already started – meaning that it could be one way to capture the earliest gains.





What are the risks?

The US is not without its problems. It has a huge public debt that its highly divided politics have made it difficult to bring down.

Although economic growth is expected to be higher in the future than that of Europe and the UK, it is still likely to be lower than that in emerging market economies, meaning that investors with smaller amounts to invest might think it wiser to save their ex-UK exposure for the developing world.

Many people think that active funds in the country offer no value for money and the best way to get access to the market is through a passive index tracker.

This is because many of the active funds have struggled to make gains higher than those of the S&P 500 stock market, and passive funds guarantee investors a return similar to that of the index.





Data provided by FE. Care has been taken to ensure that the information is correct, but FE neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

You are currently using an old browser which will not be supported by Trustnet after 31/07/2016. To ensure you benefit from all features on the site, please update your browser.   Close