Sector Exposure Overseas

  • One of the big differences right now between the U.S. and International markets is in sector weights.
  • As U.S. markets have become more dominated by Technology companies, the rest of the world still has relatively high exposure to areas like Financials, Energy, Materials, and Industrials (see chart).
  • Equity market performance over the last several years has been mostly dominated by U.S.-based tech stocks, which may or may not continue over the next several years.
  • International markets are still an attractive story in terms of diversification and low relative valuations, but also may have some tailwinds due to shifting dynamics in the economy.
  • The dominant sectors overseas could see a boost in coming years due to things like manufacturing acceleration, reshoring, energy transition, commodities demand and scarcity, etc.


  1. Topdown Charts;
Sector Exposure Overseas