- Volatile markets mean that funds which track mainstream US equities might not continue to do as well
- They could still be a good way to get large-cap exposure over the long term
- You could diversify your US exposure with value style investing, income and smaller companies funds
The large, liquid nature of the US stock market, where companies are traded around the clock and heavily researched by broking analysts, means active US equity funds face a particular struggle to beat their benchmarks over the long term.
More recently, the rise of the technology sector and considerable growth of companies such as Amazon.com (US:AMZN), Microsoft (US:MSFT) and Apple (US:AAPL) has handed these businesses large weightings in indices like the S&P 500 – weightings that active managers struggle to match.