Japan Allocation in an Investment Portfolio

darkidoe

Linton wrote: »

Japan small companies is worth investigating - I hold Baillie Gifford Japan Small Companies (7% of my Growth portfolio) which has provided double the performance of the Nikkei 225 over the past 5 years.

Is it appropriate to let one's Japanese allocation to be Small Cap focused without a broad Japan market index tracker?? Or is it better to build a foundation with a Japan index tracker before diversifying to small companies?

My current Japan Weighting atm is 6.1% in VHYL ETF which is 25% of my portfolio.

dunstonh

Is it appropriate to let one's Japanese allocation to be Small Cap focused without a broad Japan market index tracker?? Or is it better to build a foundation with a Japan index tracker before diversifying to small companies?

That is an investment management decision. No right or wrong. Just personal choice. Going small cap may push up the volatility level of the portfolio. So, that may impact on weightings you use if you are targeting a risk level. Apart from that, it is just a management decision.

bostonerimus

I own an international equity tracker that has a Japanese component and that's enough for me. No need to invest in any individual Japan funds.

darkidoe

dunstonh wrote: »

That is an investment management decision. No right or wrong. Just personal choice. Going small cap may push up the volatility level of the portfolio. So, that may impact on weightings you use if you are targeting a risk level. Apart from that, it is just a management decision.

The investment management has decided to stick with current allocations without adding in more Japan. Just to keep things simple when portfolio is not that significant.