In 2023, What Percentage Of Global Equity Markets Are US Equities?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
FIREGuy88
Posts: 190
Joined: Sun Nov 29, 2020 9:56 pm

In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by FIREGuy88 »

In 2020, Vanguard did an update on global equity investing: https://corporate.vanguard.com/content/ ... Online.pdf

To quote this research:
As of September 30, 2020, U.S. equities accounted for 58.3% of the global equity market and non-U.S. equities accounted for the remainder. Other developed equity markets that we will discuss in this paper and their percentage of global market capitalization include the euro area (8.6%), the United Kingdom (3.5%), Canada (2.7%), and Australia (1.8%).
As of September 2020, US equities made up 58.3% of global markets.

As of February 2023, what percentage is it now?

How do you stay up-to-date on this number? I was planning on checking in on this every year or so. What's the best way to do that?
livesoft
Posts: 82782
Joined: Thu Mar 01, 2007 7:00 pm

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by livesoft »

I sort of don't care, but
I guess you could do an analysis of the breakdown found in something like VT.

Image
Last edited by livesoft on Sat Feb 04, 2023 4:09 pm, edited 1 time in total.
Wiki This signature message sponsored by sscritic: Learn to fish.
User avatar
asset_chaos
Posts: 2391
Joined: Tue Feb 27, 2007 5:13 pm
Location: Melbourne

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by asset_chaos »

You could look at the fact sheet for the FTSE global all cap index, which is the index vanguard's total world fund follows. The fact sheet is updated every month. On page 2 is the country break down; at the bottom on the list is the market cap value for the US and the total for all the index. Divide and there you go. Look at it whenever the mood strikes.
Regards, | | Guy
Florida Orange
Posts: 623
Joined: Thu Jun 16, 2022 2:22 pm

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by Florida Orange »

I think the Vanguard standard recommendation of 60% U.S. 40% international is based on global market cap weight, if that tells you anything.
Topic Author
FIREGuy88
Posts: 190
Joined: Sun Nov 29, 2020 9:56 pm

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by FIREGuy88 »

asset_chaos wrote: Sat Feb 04, 2023 4:08 pm You could look at the fact sheet for the FTSE global all cap index, which is the index vanguard's total world fund follows. The fact sheet is updated every month. On page 2 is the country break down; at the bottom on the list is the market cap value for the US and the total for all the index. Divide and there you go. Look at it whenever the mood strikes.
Amazing, thanks.

The US is 58.78% as of January 2023, an increase of 0.48% over the last 2 years.

That was exactly what I needed. Thank you!
Cocoa Beach Bum
Posts: 24
Joined: Thu Jan 12, 2023 12:47 pm
Location: Florida

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by Cocoa Beach Bum »

FIREGuy88 wrote: Sat Feb 04, 2023 3:48 pm As of September 2020, US equities made up 58.3% of global markets.

As of February 2023, what percentage is it now?

How do you stay up-to-date on this number? I was planning on checking in on this every year or so. What's the best way to do that?
According to the most recent update (Jan 31, 2023) of the FTSE Global Total Cap Index, U.S. equities made up 58.51% of the global equities markets.

The above link returns the most recent summary for that index.
User avatar
nisiprius
Advisory Board
Posts: 48959
Joined: Thu Jul 26, 2007 9:33 am
Location: The terrestrial, globular, planetary hunk of matter, flattened at the poles, is my abode.--O. Henry

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by nisiprius »

Florida Orange wrote: Sat Feb 04, 2023 4:10 pm I think the Vanguard standard recommendation of 60% U.S. 40% international is based on global market cap weight, if that tells you anything.
No, it was 60% US, 40% international long before the US share was that high. During the time I've been paying attention, their recommendation has never been phrased as "global market cap weight." In 2006, they were recommending that international stocks be 20% of stock holdings. Around 2010, they raised it to 30%, and in 2013 to 40%. The recommendations have always, so far, been round numbers, and have not tracked US/ex-US cap weights.

The Vanguard Total World Stock Index Fund, VTWSX or VT, has been available since 2008. If they wanted to track cap weight, they would simply use this fund in their LifeStrategy and Target Date funds. Instead, they hold US and international in the form of two separate funds with defined target percentages.

I don't say that's right or wrong, I'm just saying that's what they've been doing.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
Topic Author
FIREGuy88
Posts: 190
Joined: Sun Nov 29, 2020 9:56 pm

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by FIREGuy88 »

Interesting, it looks like there are two:

FTSE Global All Cap Index - a market-capitalisation weighted index representing the performance of the large, mid and small cap stocks globally.

FTSE Global Total Cap Index - a market-capitalisation weighted index representing the performance of the large, mid, small and micro cap stocks globally.

All Cap Index: US is 58.78%
Total Cap Index: US is 58.51%
Florida Orange
Posts: 623
Joined: Thu Jun 16, 2022 2:22 pm

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by Florida Orange »

nisiprius wrote: Sat Feb 04, 2023 4:24 pm No, it was 60% US, 40% international long before the US share was that high.
Good to know. Thanks for the clarification.
DoctorE
Posts: 84
Joined: Thu Feb 13, 2014 2:11 am

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by DoctorE »

https://www.sifma.org/resources/researc ... -equities/
The U.S. equity markets are the largest in the world and continue to be among the deepest, most liquid and most efficient, representing 46.2% of the $111 trillion global equity market cap, or $51 trillion. This is 4.3x the next largest market, China. U.S. market share has averaged 37.4% over the last 10 years, troughing at 32.9% in 2012 and peaking at 46.2% as of 3Q22.
However this is by market cap, not the size of the respective economies.
TropikThunder
Posts: 3811
Joined: Sun Apr 03, 2016 5:41 pm

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by TropikThunder »

Cocoa Beach Bum wrote: Sat Feb 04, 2023 4:20 pm
FIREGuy88 wrote: Sat Feb 04, 2023 3:48 pm As of September 2020, US equities made up 58.3% of global markets.

As of February 2023, what percentage is it now?

How do you stay up-to-date on this number? I was planning on checking in on this every year or so. What's the best way to do that?
According to the most recent update (Jan 31, 2023) of the FTSE Global Total Cap Index, U.S. equities made up 58.51% of the global equities markets.

The above link returns the most recent summary for that index.
At this rate, US will be 100% in about 160 years.
bh1
Posts: 166
Joined: Thu Dec 30, 2021 1:49 pm

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by bh1 »

TropikThunder wrote: Sat Feb 04, 2023 10:14 pm At this rate, US will be 100% in about 160 years.
FTSE Global All Cap
2022-06-30 59.23%
2022-07-31 60.53%
2022-08-31 60.37%
2022-09-30 60.59%
2022-10-31 61.68%
2022-11-30 60.35%
2022-12-31 58.98%
2023-01-31 58.78%

Looks parabolic, with a zero intercept coming up. USA will implode? :wink:
Phyneas
Posts: 297
Joined: Tue Apr 27, 2021 9:10 pm

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by Phyneas »

ACWI at Blackrock updates daily, it currently sits at 60.14% US.
70% AVGE | 25% SCHP | 5% Cash
seajay
Posts: 1191
Joined: Sat May 01, 2021 3:26 pm
Contact:

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by seajay »

If you hold 50% Cisco US listed stock, and 50% Cisco Mexico listed stock, factoring FX and the two are the same bar regulatory/taxation factors.

Firms with international earnings will list wherever they so choose. Typically wherever their largest share of market, regulatory and taxation factors best fits their business model.

I believe in the 1970's Japan rose from very low global market share to 33% (can't recall the actual figures) that led to the US declining from 50% to 25%. But then the 1990's saw Japan's share decline, US rose back to 50% again. Japan's 1970's/1980's were like US Roaring 20's years, stock valuations became massively over-stretched as the world was introduced to the likes of Sony Walkman's, Yamaha ...etc. Those giants then saw their prices halve/whatever in the 1990's, but still were very large, acted as a drag/weight upon their total stock market - for years. Chasing market cap based market share runs the risk of profit-chasing, perhaps best if just ridden rather than rotating in/out of whatever is having its Roaring 20's type euthorea.
Topic Author
FIREGuy88
Posts: 190
Joined: Sun Nov 29, 2020 9:56 pm

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by FIREGuy88 »

Phyneas wrote: Sun Feb 05, 2023 6:21 am ACWI at Blackrock updates daily, it currently sits at 60.14% US.
This is awesome, thanks.
sycamore
Posts: 5299
Joined: Tue May 08, 2018 12:06 pm

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by sycamore »

OP, different indexes use different methodologies to measure market cap.
E.g., some methodologies report on the free-float market cap.
The choice of methodology can make the US or global cap relative sizes slightly smaller or larger.
Which methodology do you prefer, or maybe it doesn't matter for your purposes - you just want something close enough?
Cocoa Beach Bum
Posts: 24
Joined: Thu Jan 12, 2023 12:47 pm
Location: Florida

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by Cocoa Beach Bum »

Phyneas wrote: Sun Feb 05, 2023 6:21 am ACWI at Blackrock updates daily, it currently sits at 60.14% US.
I think the iShares ACWI ETF samples from the MSCI ACWI Index, which "covers approximately 85% of the global investable equity opportunity set." There is a more-comprehensive version, the MSCI ACWI IMI Index, which covers "approximately 99% of the global equity investment opportunity set" and which showed, as of Jan 31, 2023, the US weight was 59.13%.
Valuethinker
Posts: 46603
Joined: Fri May 11, 2007 11:07 am

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by Valuethinker »

DoctorE wrote: Sat Feb 04, 2023 5:38 pm https://www.sifma.org/resources/researc ... -equities/
The U.S. equity markets are the largest in the world and continue to be among the deepest, most liquid and most efficient, representing 46.2% of the $111 trillion global equity market cap, or $51 trillion. This is 4.3x the next largest market, China. U.S. market share has averaged 37.4% over the last 10 years, troughing at 32.9% in 2012 and peaking at 46.2% as of 3Q22.
However this is by market cap, not the size of the respective economies.
Depending on how you measure it, US is about 25% of world GDP (last time I looked). China is a similar size or somewhat smaller, depending on measurement. China is of course less than 5% of world stock markets (last time I checked).

Properly adjusted for purchasing power - for example a hair cut in India costs a lot less than a hair cut in America, but it's still pretty much the same haircut. Same with a visit to the doctor in Eastern Europe v the USA - the US economy is probably somewhat smaller than that. Although I have not seen estimates (but I am aware of discussion of this effect).
FireProof
Posts: 934
Joined: Thu May 05, 2011 12:15 pm

Re: In 2023, What Percentage Of Global Equity Markets Are US Equities?

Post by FireProof »

Valuethinker wrote: Sun Feb 05, 2023 4:56 pm
DoctorE wrote: Sat Feb 04, 2023 5:38 pm https://www.sifma.org/resources/researc ... -equities/
The U.S. equity markets are the largest in the world and continue to be among the deepest, most liquid and most efficient, representing 46.2% of the $111 trillion global equity market cap, or $51 trillion. This is 4.3x the next largest market, China. U.S. market share has averaged 37.4% over the last 10 years, troughing at 32.9% in 2012 and peaking at 46.2% as of 3Q22.
However this is by market cap, not the size of the respective economies.
Depending on how you measure it, US is about 25% of world GDP (last time I looked). China is a similar size or somewhat smaller, depending on measurement. China is of course less than 5% of world stock markets (last time I checked).

Properly adjusted for purchasing power - for example a hair cut in India costs a lot less than a hair cut in America, but it's still pretty much the same haircut. Same with a visit to the doctor in Eastern Europe v the USA - the US economy is probably somewhat smaller than that. Although I have not seen estimates (but I am aware of discussion of this effect).
The IMF estimated world GDP PPP at 161 trillion and US GDP PPP at 25 trillion, so a little over 15%. But of course, purchasing power is not relevant for market cap.
Post Reply