Investing in Europe

Thrugelmir

aroominyork said:

Thrugelmir said:

"Europe" as a grouping is a mixed bag of companies and economies. Intel's market capitalisation is bigger than Portugal's annual GDP. If you've a core large passive global fund little point in adding a huge number of additional European stocks for diversification. As will most likely have minimal impact on overall portfolio performance. 

But it needn't be for diversification - it might be to make up the weight. My core index is Fidelity Index World (developed world only) as about 40% of my equities, then I add a few actives like emerging markets/AP, UK smaller companies, some Fundsmith/Smithson, and end up underweight Europe. So I can remain underweight or plug the gap... and that's where I end up in the conundrum. But it's less than 5% of my equities so it's not going to make or break either way.

Sounds a mish mash of a portfolio with no real foundation.   

aroominyork

Why, Thrugelmir? An index foundation, add actives for emerging markets and small/mid caps, and some Terry who I like. What's wrong with that? 

csgohan4

one man's meat is another man's poison

as long as it's making money for you and fits your strategy, i've seen far worse on here

Thrugelmir

aroominyork said:

Why, Thrugelmir? An index foundation, add actives for emerging markets and small/mid caps, and some Terry who I like. What's wrong with that? 

For example, all the holdings in Fundsmith will already be in your global fund. Likewise majority of those in emerging markets funds. Might as well increase your global allocation and pay less fees.

aroominyork

Thrugelmir said:

aroominyork said:

Why, Thrugelmir? An index foundation, add actives for emerging markets and small/mid caps, and some Terry who I like. What's wrong with that? 

For example, all the holdings in Fundsmith will already be in your global fund. Likewise majority of those in emerging markets funds. Might as well increase your global allocation and pay less fees.

Yes, all the companies in active funds will also be in passive funds, but not necessarily in the same proportions. (RIP Eric Morecambe.)

Another_Saver

aroominyork said:

Thrugelmir said:

aroominyork said:

Why, Thrugelmir? An index foundation, add actives for emerging markets and small/mid caps, and some Terry who I like. What's wrong with that? 

For example, all the holdings in Fundsmith will already be in your global fund. Likewise majority of those in emerging markets funds. Might as well increase your global allocation and pay less fees.

Yes, all the companies in active funds will also be in passive funds, but not necessarily in the same proportions. (RIP Eric Morecambe.)

Ooh hitting me right in the nostalgia

Thrugelmir

aroominyork said:

Thrugelmir said:

aroominyork said:

Why, Thrugelmir? An index foundation, add actives for emerging markets and small/mid caps, and some Terry who I like. What's wrong with that? 

For example, all the holdings in Fundsmith will already be in your global fund. Likewise majority of those in emerging markets funds. Might as well increase your global allocation and pay less fees.

Yes, all the companies in active funds will also be in passive funds, but not necessarily in the same proportions. (RIP Eric Morecambe.)

Have you considered building your portfolio by sectors / themes rather than regions to avoid duplication. 

aroominyork

Thrugelmir said:

aroominyork said:

Thrugelmir said:

aroominyork said:

Why, Thrugelmir? An index foundation, add actives for emerging markets and small/mid caps, and some Terry who I like. What's wrong with that? 

For example, all the holdings in Fundsmith will already be in your global fund. Likewise majority of those in emerging markets funds. Might as well increase your global allocation and pay less fees.

Yes, all the companies in active funds will also be in passive funds, but not necessarily in the same proportions. (RIP Eric Morecambe.)

Have you considered building your portfolio by sectors / themes rather than regions to avoid duplication. 

Good question. My starting point isn't sectors but I'm aware of the main themes of my active funds (eg healthcare, tech, consumer staples for Fundsmith) so I have a light touch feel for whether I am over-duplicating.