Stacks are developed by hedge funds, global asset management companies, experienced wealth management firms, and portfolio managers for the benefit of retail investors.
Investing in international stocks brings the advantage of global diversification to your investment portfolio. With the US being a robust powerhouse to boost the global economy, the first choice for most global investors is the US stock market.
And, within the gamut of US stocks, there are innumerable investment ideas and themes that investors may consider for a high risk-adjusted return. Rather than trying to figure out the best stock to invest in, the better approach is to invest in a handful of stocks that have the potential to be winner stocks in the long term.
These are called Stacks which are pre-configured baskets of stocks and ETFs that you can invest in with a single click.
International brokerages give you the option to invest in top US stocks through Stacks. To put it simply, just like sectoral mutual funds, the Stacks invest in a handful of top-performing stocks of a specific sector. The job to identify the better performing stock within a sector gets captures in a Stack. These Stacks are developed by hedge funds, global asset management companies, experienced wealth management firms, and portfolio managers for the benefit of retail investors.
Technology, pharma or electric vehicle stocks represent a particular theme. There are foreign trading account platforms in India that offer such opportunities to Indian investors. Opening an account is simple and buying top US stock market Stacks is possible in a few day’s time.
To an investor, there are three key benefits of choosing to invest through Stacks:
- Well Diversified: Diversify your holdings in a single click, without going into deep research
- Expertly Managed: Built by investment experts based on extensive research & financial analysis
- Auto- rebalancing: Active rebalancing to ensure alignment with goals and benchmarks
Here are some popular Stacks for investing in US markets:
1. US Tech Bluechip Portfolio
The US Tech Bluechip Stack invests in pure Technology Internet companies that are critical to the industry and have leading competitive advantages (MOATs) in their businesses. The investment strategy of US Tech Bluechip Stack is an investment in best-of-breed Technology companies benefitting from uptrends in Internet, Hardware, Software, OTT & Cloud.
2. Electric Vehicle Portfolio
The Electric Vehicles Stack is composed of companies involved in Electric Vehicle (EVs) technology, Autonomous Vehicles, Battery, EV components, and general CleanTech companies. This Stack focuses solely on investing in EV companies with high growth potential and having moderately low risk.
3. Omniscience AIoT
AIoT Stack sits at the heart of disruptive technology infrastructure (AI, IoT, Cloud, 5G, Big Data, Robotics, Analytics, Cybersecurity, etc) and their use cases (Industry 4.0, Autonomous Cars, Virtual Reality, Smart Wearables, etc). The portfolio is created from a proprietary investment universe of nearly 200 US-listed companies focused on disruptive technologies. AIoT is suitable for investors to add a thematic allocation to their core equity portfolio. With its Technology and thematic focus is naturally a high-risk allocation and ideally should not be more than 10%-20% of the total equity allocation.