I downloaded the csv file with all US, UK stocks and ETFs and ran it through my FA spreadsheet. Not so useful for investing, but I found it sort of interesting anyway, so thought I’d share. Here’s some datapoints for 100% ownership for trailing year for all of Freetrade’s current offerings combined into those two categories:
- US stocks would have a 3.5% total return compared with -8.5% for UK/ETFs. (This was due to a small minority of firms who have performed terribly - I’m looking at you, Debenhams, Metro, Superdry, etc., corrected for some errors in the data.)
- UK/ETFs are very low volatility compared to benchmarks (beta 0.68), whereas the US stocks are weighted towards the riskier end of the spectrum at 1.11.
- Aggregated projected growth in earnings for US offerings are high at 17.8%, UK/ETFs slightly lower at 14.3%.
- UK/ETFs = moderate debt. US = higher.
- 38 UK/ETFs pay out more than 5% in dividends, compared with just 4 US stocks.
- UK/ETFs are rated as slightly undervalued at current market rates. Not so for US stocks.
Conclusion, if any: Pick wisely.