Thought Leadership

Going Global via the S&P 500

Rather than investing directly in many foreign markets, we believe gaining exposure to the global economy through the most liquid, deepest, and best regulated market in the world is a better way of achieving geographical diversification.

In 2018, over 40% of the S&P 500 constituents’ sales were from foreign countries, and 40% of taxes paid were to foreign governments; according to this analysis by S&P Global.

Although the US has its challenges, it offers us the lowest transaction costs, the lowest currency hedging costs, the most liquidity, the least government expropriation or crony capitalism risk, and the most protection as investors with its well defined legal and regulatory framework.

This post is presented for illustrative and discussion purposes only. This post should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities and it does not consider unique objectives, constraints, or financial needs of the individual. Under no circumstances does this post suggest that you should time the market in any way or make investment decisions based on the content. Investors are advised that their investments are not guaranteed, their values change frequently, and past performance may not be repeated. References to specific securities are presented to illustrate the application of our investment philosophy only, do not represent all of the securities purchased, sold or recommended for the portfolio, and it should not be assumed that investments in the securities identified were or will be profitable and should not be considered recommendations by Bristol Gate Capital Partners Inc. The information contained in this post is the opinion of Bristol Gate Capital Partners Inc. and/or its employees as of the date of the post and is subject to change without notice. Every effort has been made to ensure accuracy in this post at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and Bristol Gate Capital Partners Inc. accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. We strongly recommend you consult with a financial advisor prior to making any investment decisions. Please refer to the Legal section of Bristol Gate’s website for additional information at

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