For a long time, having a lot of your investments in the US felt less like a risk and more like a reward. American tech giants kept climbing, US markets kept outperforming, and anyone who questioned it was probably just being difficult at dinner parties.
But things shifted in 2025. A wave of US tariff announcements, concerns about how concentrated global funds had become in a handful of American companies, and growing political uncertainty all combined to make investors a little more cautious about having so much riding on one market.
How Did We Get Here?
It wasn’t a deliberate choice for most people. Over the past decade, global investment funds, including many of the most popular ones held inside UK pensions and ISAs, gradually shifted more and more money into US companies. This happened partly because the US grew to dominate global markets, and partly because it kept delivering strong returns.
The result?
Many people who thought they were spread across the world found themselves with more than half of their money in US companies without ever actively choosing that. Your fund did it for you, quietly, while you weren’t looking.
To put a number on it, the iShares MSCI ACWI ETF, one of the most widely held global funds, had nearly 63% of its assets allocated to the US as of early 2026.
That’s not necessarily wrong, but it’s worth knowing.
What’s Changed?
A few things have shifted the conversation.
US markets remain large and important, but the era of near-guaranteed outperformance looks less certain than it did a few years ago. US investments remain expensive compared to their long-term fair value, which many experts believe could mean lower returns from here than investors have been used to.
In relative terms, other markets have started to look more interesting. UK shares, for example, continue to attract investors seeking income; they offer comparatively high dividend yields and appear less expensive than their US equivalents.
AJ Bell recently highlighted a forward dividend yield of over 3% on the FTSE 100 for both 2025 and 2026.
European and Japanese markets have also attracted renewed attention from professional investors who feel the US has been doing too much of the heavy lifting.
This doesn’t mean abandoning US investments. Far from it. It just means being intentional about how much is there, and why.
What Should You Actually Do?
First, find out what you own. Many people haven’t looked inside their pension or investment funds in years. If you hold a popular global tracker or a mixed investment fund, it’s worth checking how much is invested in each country; most providers publish this information.
If the amount sitting in the US feels higher than you’re comfortable with right now, that doesn’t necessarily mean you should sell. It might mean reviewing whether your overall mix still reflects your goals and how much uncertainty you’re willing to live with, particularly as retirement gets closer.
Diversification isn’t about writing off any one market; it’s about not having all your eggs in one very large, slightly unpredictable basket.
Worth a Second Look
If you haven’t reviewed your portfolio recently, now is a reasonable time to do it. Markets move, funds drift, and what was well-balanced three years ago (or even 12 months with the Nasdaq) might look quite different today.
We’re happy to take a look with you and talk through whether any adjustments make sense for your situation.
📞 Call 020 8366 4400 or 📧 email enquiries@cedarhfs.co.uk to speak with the team.
Capital at risk. The value of investments can fall as well as rise, and you may get back less than you invest. This article is for general information only and does not constitute personal financial advice.