Report published August 17, 2026
Why Investors Should Diversify Beyond US Equities: UBS Portfolio Strategy
Source and citation context
- Issuer
- UBS
- Report date
- August 17, 2026
- Analysis as of
- Not stated in source
Authors / editors: Ulrike Hoffmann-Burchardi (Chief Investment Officer Americas and Global Head of Equities), Matthew Gilman (Head, CIO Europe Equity Strategy), Suresh Tantia (Head CIO Asia Equity Strategy), Laura Smith (Analyst), Vincent Heaney (Strategist)
Finvaulta summarizes UBS's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
While US equities account for over 60% of global indices, UBS advises investors to diversify globally as earnings growth broadens beyond US mega-cap AI leaders. Regions including Europe, Asia ex-Japan, Japan, and emerging markets offer strong profit growth potential and help mitigate severe portfolio concentration risks.
Key Takeaways
- 1.Investors are heavily concentrated in US equities, but earnings growth is broadening beyond US mega-cap tech and AI themes to international regions.
- 2.Eurozone profits are expected to exit stagnation with ~25% cumulative earnings growth over 2026–2027, and MSCI Asia ex-Japan earnings are projected to rise 72% in 2026.
- 3.Concentration risk is elevated, with nearly 40% of platform self-managed equity investors holding over half their portfolio in 10 or fewer stocks; investors should diversify across preferred regions, sectors, and structured strategies.
Table of Contents
- Key message
- 01 Investors may focus chiefly on US stocks given their importance and the pace of earnings growth.
- 02 But we believe the earnings story extends beyond the US and AI.
- 03 So, investors should diversify stock allocations across preferred regions, sectors, and return drivers.
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- One liner
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- Investment view
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- Disclaimer
Report data
Key figures extracted from this report
| Metric | Estimate | Context |
|---|---|---|
| US share of global equity index | 60% | The US accounts for over 60% of global stocks based on MSCI AC World data. |
| S&P 500 Q2 earnings growth estimate | 28% | S&P 500 second-quarter earnings growth estimate may be surpassed. |
| Semiconductor contribution to S&P 500 Q2 earnings growth | 40% | Semis earnings contribute roughly 40% to S&P 500 Q2 profit growth. |
| Eurozone earnings growth forecast | 25% | Total expected cumulative earnings growth over 2026 and 2027 as profits exit a 3-year stagnation. |
| MSCI Asia ex-Japan earnings growth forecast | 72% | Forecast earnings growth for MSCI Asia ex-Japan this year. |
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Authors / Editors
Reported Data Context
- US share of global equity index: 60 % (2026) · Source: MSCI AC World data
- S&P 500 Q2 earnings growth estimate: 28 % (Q2 2026) · Source: UBS
- Semiconductor contribution to S&P 500 Q2 earnings growth: 40 % (Q2 2026) · Source: UBS
- Eurozone earnings growth forecast: 25 % (2026-2027) · Source: UBS
- MSCI Asia ex-Japan earnings growth forecast: 72 % (2026) · Source: UBS