Key Facts
• US-focused portfolios face increasing risks; diversification is now essential.
• “All Country” funds like eMAXIS Slim allocate 60-70% to US stocks.
• European equity funds are gaining traction due to strong performance in 2025.
• Suggested portfolio allocation: US stocks 50%, European stocks 20%, Japanese stocks 15%.
• Two recommended funds: Fidelity European Equity Fund and iTrust Premium Brand.
• Fidelity European Equity Fund invests in UK (26%), France (14%), and Germany (13%).
• iTrust Premium Brand Fund allocates over 50% to European stocks, focusing on luxury brands.
• European equity funds offer diversification in regions, currencies, and industries.
• Active funds outperform limited European index funds in Japan.
• NISA Grand Prix evaluates funds based on growth, stability, and resilience.
Summary
As US-focused investments face growing risks, experts recommend diversifying portfolios with European equity funds. Popular “All Country” funds heavily favor US stocks, leaving portfolios exposed to regional and industry-specific risks. European equity funds, such as Fidelity European Equity Fund and iTrust Premium Brand, provide diversification across regions, currencies, and industries. These funds have shown strong performance in 2025, with the Fidelity fund focusing on defensive sectors like healthcare and consumer staples, while iTrust emphasizes high-brand-value companies. Suggested portfolio allocation includes 50% US stocks, 20% European stocks, and 15% Japanese stocks. The NISA Grand Prix highlights top-performing funds based on growth, stability, and resilience, encouraging investors to explore alternatives beyond US and global stock funds.
