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These days, volatile stock markets are leaving investors wondering where best to put their money. Should Britons stick with familiar FTSE 100 blue-chips or chase US growth stocks on the S&P 500?
As usual, the optimal strategy is probably one of moderation — a balance between both worlds. In the UK, investors have access to value-oriented, dividend-rich stocks, and across the pond, America’s growth engines.
Leaning toward energy, financials and healthcare (12%), the UK offers an average dividend yield of 3.5% — double the S&P 500’s 1.5%. This defensive tilt does well during market downturns, delivering steady income amid uncertainty.
Conversely, the US’s tech weighting drives explosive growth but adds volatility risk. With valuations averaging around 25 times forward earnings, that’s almost double the FTSE’s average of 13.
Although the markets are relatively closely-correlated, the S&P 500 has outpaced the Footise by around 10% annually. But when things get rough, UK stocks are less volatile, reducing the chance of panic-selling.
Which is best? That depends on individual investors’ strategies. But a dual-market strategy offers not only diversification but income stability and growth potential. However, it’s understandable that some investors may prefer to keep their funds on UK soil.
That’s where multinational UK businesses come in. These stocks may be UK-listed, but they derive much of their revenue from the US, while also benefitting from UK market stability.
The best of both
One UK stock that exemplifies this concept is AstraZeneca (LSE:AZN), the FTSE 100’s largest by market cap — thriving in both the US and UK business environments.
Headquartered in Cambridge, UK, the pharma giant derives 40% of its revenue from the US. Last month (November 2025) saw it surge 12% on US expansion news such as oncology breakthroughs and new partnerships. With a 2.1% yield and 15% earnings growth forecast, it delivers a steady balance of income and growth.
Plus, it provides moderate exposure to US tech innovation without the associated overvaluation. With earnings growth outpacing the price, it’s trading at 42% below fair value based on future cash flow estimates.
The investment case
With new US developments bolstering investor confidence, the price may soon start to close the gap between earnings. For investors looking for US exposure, now may be a good time to consider AstraZeneca.
But before jumping in, it’s important to consider any risks. Over 40% of revenue stems from two of its key drugs, Tagrisso and Farxiga — both of which are facing patent expiry in the next few years. Analysts forecast up to 15% in lost revenue after competitors flood the market with generics, reducing profits and threatening a dividend cut.
Final thoughts
Investors can get US exposure from multinational FTSE 100 stocks. I’ve recently been looking at a number of other UK stocks that offer a mix of growth, income and defensiveness. That’s because keeping track of market developments and regularly rebalancing a portfolio can help capitalise on the best opportunities.
But ideally, it could be best to not let ourselves be hampered by just one country and to build a diversified portfolio with a mix of companies listed in various regions.
For instant, research has shown that a 60/40 mix of UK and US stocks can reduce volatility by 15% to 20%. UK investors gain from FTSE dividends funding retirement while US growth combats inflation.
