Diversify Your Portfolio Outside the US: A Call to Action from Schwab Asset Management CEO

Omar Aguilar, CEO and CIO of Schwab Asset Management, suggests investors diversify their portfolios outside the US due to looming volatility. Despite this, major indices such as the S&P 500 and Nasdaq are poised to close the week higher, indicating a positive market trend. Aguilar believes the market is tracking positively despite concerns.

Omar Aguilar, CEO and CIO of Schwab Asset Management, has advised investors to diversify their portfolios beyond the US due to anticipated market volatility. Despite this caution, major indices such as the S&P 500 and Nasdaq are poised to close the week higher, indicating a positive market trend. Aguilar's recommendation comes amidst a backdrop of geopolitical and economic uncertainties, including President Trump's policies and the ongoing trade war.

In the second quarter of 2025, F&G Annuities & Life reported a significant increase in assets under management (AUM) and sales, driven by strong fixed index annuities and demographic trends. The company's record AUM before flow reinsurance stood at $69.2 billion, with retained assets under management of $55.6 billion. The company also delivered $4.1 billion in gross sales, highlighting substantial growth in core sales of fixed index annuities, index life, and pension risk transfer. This growth was facilitated by favorable macroeconomic conditions, consumer demand, and demographic trends [1].

The market's resilience is also reflected in the performance of A. P. Moller-Maersk A/S, a bellwether for world trade. The company raised its financial outlook for 2025, citing resilient demand outside North America, despite concerns over the trade war. The global container market is expected to expand by 2% to 4% this year, compared to a previous forecast of a range between a contraction of 1% and an expansion of 4% [3].

Moreover, emerging markets have shown a resurgence in investor interest due to recent policy uncertainty under President Trump. The MSCI Emerging Markets Index posted a robust 15.6% return for the first half of 2025, significantly outperforming the S&P 500's 6.2% gain in US dollars. The depreciation of the US dollar has created favorable conditions for emerging markets, particularly in Brazil and South Africa, where local equities have become more attractive to global investors [4].

Despite these positive developments, the market remains volatile. US stocks rose on Friday as Wall Street assessed President Trump's nomination of Stephen Miran to the Federal Reserve Board of Governors and took in his new regime of sweeping tariffs. The Dow Jones Industrial Average (^DJI) rose 0.4%, and the benchmark S&P 500 (^GSPC) gained 0.6%. The tech-heavy Nasdaq Composite (^IXIC) climbed 0.8%, on pace to set a second record close in a row [2].

In conclusion, while the market shows signs of resilience, investors are advised to remain cautious and consider diversifying their portfolios to mitigate potential risks. The insights from Schwab Asset Management and recent financial developments underscore the importance of strategic diversification and vigilance in navigating market volatility.

References:
[1] https://www.ainvest.com/news/annuities-life-q2-2025-navigating-key-contradictions-market-volatility-strategic-focus-2508/
[2] https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-climb-as-wall-street-eyes-trump-moves-on-fed-133604679.html
[3] https://news.bloombergtax.com/international-trade/maersk-raises-its-outlook-owing-to-resilient-demand-outside-us
[4] https://www.mandg.com/investments/professional-investor/en-ch/insights/mandg-insights/latest-insights/2025/08/why-are-investors-favouring-emerging-market-equities