Thomas Moore, Manager, Aberdeen Equity Income Trust
- UK equities have outperformed US equities in the first half of 2025, led by higher yield stocks
- For many years, investor allocations to US equities have grown at the expense of UK equities
- Even a small rotation out of the US and into the UK could make a meaningful difference to returns
- Within UK equities, we observe that smaller cap stocks could be starting a resurgence, making this a rich hunting ground for investors who can invest across the UK market.
The resurgence in UK equities could come as quite a surprise for investors who have grown used to the dominance of US growth companies over the past decade. In the first 6 months of 2025, the FTSE All-Share index has delivered a total return of +9.1%, significantly outperforming the S&P 500 index delivered +6.2% in local currency terms. What’s even more surprising is that higher yield stocks have been…
