Knowledge Tree
U.S. stocks
Also known as: US equities, U.S. stocks, US stocks
Facts (17)
Sources
Wealthfront Classic Portfolio Investment Methodology White Paper research.wealthfront.com Mar 9, 2026 10 facts
procedureWealthfront enforces minimum and maximum allocation constraints for each asset class, setting minimums at zero to ensure portfolios are long-only and maximums at 35% for most asset classes to ensure diversification, with the exception of US stocks which have a maximum allocation of 45%.
claimIn Wealthfront's retirement portfolios, increasing risk levels leads to decreased allocation to conservative assets (US bonds, TIPS, and corporate bonds) and increased allocation to aggressive assets (US stocks, foreign developed stocks, emerging market stocks, and real estate).
measurementUS stocks constitute approximately 64% of the MSCI All-Country World Index (ACWI) as of May 2024.
claimAs risk levels increase, Wealthfront's investment portfolios decrease allocations to lower-risk/lower-return assets, such as TIPS and municipal bonds, and increase allocations to higher-risk/higher-return assets, such as US stocks, foreign developed stocks, and emerging market stocks.
claimForeign developed markets provide diversification from US stocks and represent a significant portion of the world economy, despite economic struggles in Europe and Japan in recent decades.
claimUS stocks represent ownership shares in US-based corporations, which benefit from the US having the world's largest economy and stock market.
claimEmerging market stocks are more volatile than US stocks and foreign developed market stocks, but are expected to deliver higher long-term returns.
claimThe correlation between US stocks and US bonds is close to zero, indicating that bonds serve as an effective diversifier for equity investments.
claimWealthfront portfolios contain between five and seven asset classes, including US stocks, foreign developed stocks, emerging market stocks, dividend growth stocks, US bonds, US corporate bonds, municipal bonds, and TIPS.
claimStocks are generally riskier than bonds, and foreign stocks are generally riskier than US stocks.
The Relationship Between Risk and Return in Different Asset Classes bi-sam.com Mar 18, 2025 3 facts
measurementBetween 1926 and 2023, U.S. stocks returned approximately 10% annually on average, long-term government bonds returned about 5-6% annually, and cash equivalents returned around 3% annually.
claimFollowing the 2008 financial crisis, U.S. stocks experienced a lengthy bull market, while a low interest rate environment suppressed bond returns.
claimDuring the 2000-2009 period, often referred to as the "lost decade," U.S. stocks produced negative returns while bonds outperformed.
Iran War: Potential Impact on Global Equities - Charles Schwab schwab.com 2 facts
measurementEmerging-market stocks remain less expensive than both developed-market international and U.S. stocks as of March 5, 2026, because earnings estimates for emerging-market companies have risen faster than stock prices in 2026.
measurementValuations of international stocks remain attractive relative to U.S. stocks, despite developed-market valuations rising over the year preceding March 12, 2026.
Policy Paper: Decoding the United States on Tariffs and Trade freiheit.org Dec 16, 2025 1 fact
claimAn expert described gold as being riskier than US stocks at the time of the report.
The price of protectionism: Understanding the economic tradeoffs of ... statestreet.com 1 fact
measurementUS equities, particularly large-cap stocks, experienced significant volatility during the 2018-2019 US-China trade war, with the S&P 500 losing 5 percent on key tariff announcement days.