A portfolio manager says investors are looking overseas as Magnificent Seven worries grow. Here are the stocks and sectors he favors

Skip NavigationMarketsPre-MarketsU.S. MarketsEurope MarketsChina MarketsAsia MarketsWorld MarketsCurrenciesPrediction MarketsCryptocurrencyFutures & CommoditiesBondsFunds & ETFsBusinessEconomyFinanceHealth & ScienceMediaReal EstateEnergyClimateTransportationInvestigationsIndustrialsRetailWealthSportsLifeSmall BusinessInvestingPersonal FinanceFintechFinancial AdvisorsOptions ActionETF StreetBuffett ArchiveEarningsTrader TalkTechCybersecurityAIEnterpriseInternetMediaMobileSocial MediaCNBC Disruptor 50Tech GuidePolitics & PolicyWhite HousePolicyDefenseCongressExpanding OpportunityEurope PoliticsChina PoliticsAsia PoliticsWorld PoliticsVideoLatest VideoFull EpisodesLivestreamTop VideoLive AudioEurope TVAsia TVCNBC PodcastsCEO InterviewsDigital OriginalsWatchlistInvesting ClubTrust PortfolioAnalysisTrade AlertsMeeting VideosHomestretchJim's ColumnsEducationSubscribePROPro NewsJosh BrownMike SantoliCalls of the DayMy PortfolioLivestreamFull EpisodesStock ScreenerMarket ForecastOptions InvestingChart InvestingSubscribeLivestreamMenuMake ItselectUSAINTLLivestreamSearch quotes, news & videosLivestreamWatchlistSIGN INCreate free accountMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenu (function() { const userMembershipOnLastVisit = localStorage.getItem("cnbcMeta__cachedUserMembership"); if (!userMembershipOnLastVisit) { // If no user membership is stored, user is likely not logged in. // These users will typically see the banner. return; } const { isPro, isInvestingClubUser } = JSON.parse(userMembershipOnLastVisit); if (!(isPro || isInvestingClubUser)) { // We’re rendering the top banner for users who are not pro or investing club members. return; } // Hide the banner for pro and investing club users. const style = document.createElement("style"); style.id = "top-banner-placeholder-style"; style.innerHTML = "[data-top-banner-placeholder] { display: none; }"; document.head.appendChild(style); })() MarketsA portfolio manager says investors are looking overseas as Magnificent Seven worries grow. Here are the stocks and sectors he favorsPublished Fri, Jul 31 20263:16 AM EDTJoanna OssingerLee Ying Shan@in/ying-shan-lee@LeeYingshanWATCH LIVEKey PointsInvestors are becoming more open to international equities after years of U.S.-heavy portfolios, Janus Henderson Investors’ Julian McManus told CNBC.McManus said "Magnificent Seven" concentration has left portfolios vulnerable.The MSCI ACWI ex-US index has outpaced the S&P 500 year-to-date, rising more than 8% versus a 6.8% gain for the S&P 500, according to LSEG data.In this article700-HK3750-HK3750-HKFollow your favorite stocksCREATE FREE ACCOUNTTraders work on the floor of the New York Stock Exchange during morning trading on July 24, 2026 in New York City. Michael M. Santiago | Getty ImagesInvestors are becoming more willing to increase their exposure to international equities, as concerns over the dominance of the "Magnificent Seven" technology giants encourage diversification away from U.S. stocks, Janus Henderson Investors' Julian McManus told CNBC."There's definitely a move to explore more outside the U.S.," the portfolio manager on Janus Henderson Investors' Global Alpha Equity Team said in an exclusive interview. The firm reported about $480 billion in assets under management as of March 31.The shift marks a stark contrast with two years ago, when U.S. financial advisers were more reluctant to consider overseas markets after a decade in which American stocks consistently outperformed international peers.The MSCI ACWI ex-US index has risen over 8% year-to-date, compared to the S&P 500's gains of 6.8%, data from LSEG showed.McManus said investors had become heavily concentrated in a handful of large-cap U.S. technology s