Domestic equity funds invest in companies domiciled in the United States. Domestic Equity Funds, as the name suggests, invest primarily in stocks of U.S.-based companies.

These come in many varieties: some invest in companies within a certain size range, some focus on specific sectors, some seek value or growth stocks within sectors, and so on. Domestic stocks funds usually represent the majority of the holdings in an average American citizen’s portfolio.

This is mostly due to familiarity, and partially a desire to help their domestic economy by providing equity which will help companies thrive. The US economy is also the strongest in the world, with ample liquidity, so it is a good choice for foreign investors as well.

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