North America

Introduction to North America

North American funds focus on companies that are domiciled in the United States and Canada. These could be companies that generate the majority of their revenues domestically or those that have extensive revenues from outside North America. The US market is the largest and broadest in the world and therefore fund managers have a large selection of stocks and sectors from which to choose.

The benchmark indices are the S&P 500, the Dow Jones industrial average and the technology-focused Nasdaq. Among the major constituents of the S&P 500 are the technology giants of Apple and Microsoft, oil majors Exxon Mobil and Chevron, plus consumer goods groups Johnson & Johnson and Proctor & Gamble, but many fund managers prefer to focus on smaller or mid cap stocks.

The North American market is usually seen as more 'defensive' than other markets - it tends to hold its value even when times are tough. However, because it is large and liquid and there are a lot of market participants, it is also seen as extremely efficient. There don't tend to be as many mispricing opportunities for active managers to exploit. North America managers follow a variety of styles, some prioritising high growth companies, others preferring more 'value' names trading at cheaper prices.

The tax treatment of investments is subject to tax law and HMRC practice which are subject to change. The value of investments may be affected by exchange rate movements where the underlying investments are not denominated in Pounds Sterling.

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Blackrock North American Income Trust Plc ORD 1P9.8663.81--7.10173.70Buy
Canadian General Investments GBP27.5745.0379.74-26.501,870.85Buy
Gabelli Value Plus Trust PLC13.01---5.56138.58Buy
JP Morgan American IT plc12.9657.46125.82-4.95412.20Buy
JP Morgan US Smaller Companies IT PLC Ord 2.5P26.7286.63178.51-4.31295.50Buy
Jupiter US Smaller Companies PLC Ord 25P11.1338.9174.02-7.98938.94Buy
Middlefield Canadian Income Trust I8.5718.1225.44-10.40114.40Buy
North Atlantic Smaller Companies IT5.9962.30135.26-17.633,284.47Buy
The North American Income Trust plc Ord 25p19.0166.61117.04-7.151,362.39Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
BMO Enhanced Income USA Equity UCITS ETF----GBPEquity - USABuy
BMO MSCI USA Income Leaders GBP Hedged9.6020.40--GBPEquity - USABuy
Boost NASDAQ 100 3x Leverage Daily ETP37.3790.02183.35-USDEquity - USABuy
Boost NASDAQ 100 3x Short Daily ETP-32.33-54.01-83.15-USDEquity - USABuy
Boost S&P 500 3x Leverage Daily ETP30.9771.94110.04-USDEquity - USABuy
Boost S&P 500 3x Short Daily ETP-26.82-47.24-73.70-USDEquity - USABuy
CFS DBX Trck S&P 500 Equal Weight DR 1C Acc GBP5.0711.2263.19-GBXEquity - USABuy
DB X-Trackers MSCI USA Index UCITS ETF 1C GBP7.0913.1968.76138.94GBPEquity - USABuy
DB X-Trackers MSCI USA Minimum Volatility UCITS ETF (DR) 1D USD8.36---USDEquity - USABuy
DB X-Trackers S&P 500 2x Inverse Daily UCITS ETF USD-18.14-33.99-56.66-81.25USDEquity - USABuy
DB X-Trackers S&P 500 2x Leveraged Daily UCITS ETF USD20.2445.3474.90240.20USDEquity - USABuy
DB X-Trackers S&P 500 Inverse Daily UCITS ETF GBP-12.08-24.41-17.87-45.66GBPEquity - USABuy
DB X-Trackers S&P 500 UCITS ETF 1C GBP7.2513.4169.92140.70GBPEquity - USABuy
DB X-Trackers S&P 500 UCITS ETF (DR) 2C Hedged GBP9.7120.59--GBPEquity - USABuy
ETFS Russell 2000 US Small Cap GO UCITS ETF GBP6.3815.5969.33134.76GBPEquity - Small Cap USABuy
First Trust US Equity Income UCITS ETF A Inc GBP4.297.64--GBPEquity - USABuy
First Trust US Large Cap Core AlphaDEX UCITS ETF A Acc Nav GBP6.6114.0663.68-GBPEquity - USABuy
First Trust US Small Cap Core AlphaDEX UCITS ETF A Acc USD10.27---USDEquity - Small Cap USABuy
FundLogic MS Scientific Beta US Equity Factors UCITS8.5119.10--USDEquity - USABuy
HSBC MSCI USA GBP6.8613.1466.70134.67GBXEquity - USABuy

Disclaimer

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