Despite political imponderables, the Wall Street remains the power center of the global stock market-if you think in the long term, you cannot avoid US values. (Photo: Freepik, Eyeem)
Investors are currently back on US shares-but that could take revenge. Because in the middle point of view, no way leads past Wall Street. 3 portfolios now offer protection against political risks and at the same time open up opportunities for ordinary returns.
Withdrawal from US shares-a mistake with an announcement?
America’s stock exchange is under fire. Penal tariffs, debt crisis, a president with a penchant for loss of control – the political risk in the United States is increasing. What do investors do? You turn your back on the world’s most powerful stock market. Billions have flowed out of US stock funds in the past few months. Panic instead of plan.
The numbers show a different picture: the S&P 500 has increased by a whopping 224 percent in the past 10 years. The European Stoxx Europe 600? Just 81 percent. Even the Dax, including dividends, remains significantly behind. One thing is clear: if you want a return, you can’t avoid the Wall Street – not even with Trump in the White House.
The question is therefore not whetherrather How Invested in US shares-without risking sleepless nights.
Provener: If electricity and water are more important than Trump
Anyone who wants to ignore the large political weather situation is best invested in industries that run even when the storm rages in Washington. Such rock-in-the branding titles are suppliers. Electricity, water, gas – the American always needs that, regardless of whether the president is starting a trade war or escalating punitive tariffs.
The fund: Ishares S&P 500 Utilities Sector Ucits ETF (WKN: A142N3)
The ETF bundles the 31 largest US suppliers. Around 2 thirds of the portfolio are eliminated by classic energy companies such as Nextera Energy, Duke Energy or Southern Company. Another 27 percent are in broad multi-utilities.
Many of these corporations have economic “castle ditches” – that is, market entry barriers that love investors. Nobody builds a second power grid. Regulation also protects against ruinous competition. The ETF shines with a long -term return of 8.5 percent per year since the 2017 edition, at low costs (0.15 percent) and comparatively moderate volatility.
Risks? Yes, there is. Especially when Trump shoots against renewable energies- this affects Nextera, a heavyweight operator of wind and solar power plants. The course recently dropped by over 20 percent. But in the overall picture, the ETF remains a solid investment-for everyone who wants to combine defensive stability with US market presence.
Stable through the waves: the factor volatility
When the markets have gone, there is no return of maximization, but risk limitation. This is exactly where so-called low-volatility strategies come in. They filter stocks with particularly low price fluctuations – mathematically precise, but with amazingly robust results.
The fund: UBS Factor MSCI USA low Volatility Ucits ETF (ISIN: IE00BX7RQY03)
This ETF chooses around 120 US shares with minimal historical volatility. The basis is the MSCI USA Select Dynamic 50% Risk Weighted Index. The selection is based on key figures such as standard deviation, maximum drawdown and beta factor. The result is a portfolio full of defensive burners: Berkshire Hathaway, Colgate-Palmolive, Johnson & Johnson, Verizon-dividends, stability, market position.
The numbers are right: Over the past 5 years, the average return was over 12 percent – with a volatility of only 12 percent. The fund thus beats many classic indices without having to get into the tech carousel.
For investors who want solid yields, but no heart attacks for every stock exchange swivel, this is an ideal component. Low Vola has long been more than a niche product – it is the new quality standard for clever investors.
Classics for quality fans: Value Made in America
Value shares Celebrate your comeback. After years in the shadow of the growth values, solidly rated substance stocks experience a renaissance. The reason: interest rates, uncertainty increases – and suddenly reliability is sexy again.
The fund: MfS Meridian Us Value Fund (ISIN: LU0125979160)
The fund classic from MfS has been based on fundamental, strong US corporations with an attractive level of evaluation for over 20 years. The heads behind it-Katie Cannan, Nevin Chitkara and Thomas Crowley-are pursuing a disciplined bottom-up approach. The focus is on established large caps that are cheaply rated and have been shown to provide stable yields through all market cycles. Financial titles such as JPMorgan Chase or progressive are particularly weighted, followed by health and industrial groups such as McKesson and RTX Corp.
The portfolio is focused with around 70 titles, but not knitted too tight. The strategy deliberately aims to actively control downwards. The result: a long -term annualized return of 7.3 percent – with significantly reduced volatility.
The fund is suitable for investors who do not have to participate every trend, but place emphasis on substance, quality and reliability – the quiet hand at the wheel.
Conclusion: Wall Street remains the center of power
Donald Trump may make headlines – but America’s companies provide profits. Despite all the geopolitical risks, despite debt dispute and electoral chaos: the United States remains the locomotive in the global economy. Your corporations are innovative, globally networked – and indispensable for investors.
With the provider ETF of Ishares, the low-volatility product from UBS and the Value Fund of MFS, there are 3 clever ways to withdraw political noise-without missing the US return potential.
Because one thing remains certain:
Anyone who wrote America writes down return.
Disclaimer:
No investment advice. No call to buy or sell securities.