Anti US bias world index funds

Hoenir

Sunnylifeover50plan said:

Would anyone be wise to bet against the US?

"Price is what you pay, value is what you get"

Cobbler_tone

I'm not sure trying to avoid US markets is going to mitigate too much immediate impact on funds and markets. 
Some interesting times over the coming months. Exciting innit?!

Linton

Sunnylifeover50plan said:

Would anyone be wise to bet against the US?

You can’t easily bet against any country, but you can certainly justify valuing other countries more highly.

My own growth portfolio was 40% US as I considered 60% in any region/country/industry/etc far too high a specific risk.  The most recent change (pre Trump) was to increase China. US is now down to about 37% as it has been the worst performing market since Trump came into power.  It won’t be rebalanced.

vacheron

My two largest pensions are split between two providers, but each provider is 100% allocated in a single fund. One of these is noticably less US biased so I am sort of doing something similar by varying which pension company I contribute to, or transfer my other pension funds to, depending on how I feel the wind is blowing.

It does more "gently dilute" my overall holdings rather than signifincantly alter them, but it makes me feel better to have the option. 

QrizB

Cobbler_tone said:

Some interesting times over the coming months. Exciting innit?!

IMHO investing for retirement, like administrative law and operating nuclear reactors, should be boring.
Exciting is bad.

Hoenir

For some investors. Concerning might be a better choice of word. 

Lowtrawler

I have concerns on the impact of the magnificent 7 to world stock indices. However, I am also keen to reduce concentration risk wherever it might be. Hence, I am moving towards most of my equity based investments being in MWEP - this tracks the MSCI World Equal Weighted index. It comprises 1,352 stocks across 23 developed countries and each stock gets the same weight. This also has the impact of reducing USA exposure to under 42%.

It means no single stock accounts for more than 0.13% of the fund.

Combining this with a small number of funds in unrelated sectors, I am hopefully minimising sector specific or market specific risks. Evidence also suggest equal-weighted funds out-perform traditionally weighted funds:

https://www.lynalden.com/equal-weighted-index-funds/

bathblue

Lowtrawler said:

I have concerns on the impact of the magnificent 7 to world stock indices. However, I am also keen to reduce concentration risk wherever it might be. Hence, I am moving towards most of my equity based investments being in MWEP - this tracks the MSCI World Equal Weighted index. It comprises 1,352 stocks across 23 developed countries and each stock gets the same weight. This also has the impact of reducing USA exposure to under 42%.

It means no single stock accounts for more than 0.13% of the fund.

Interesting, will look into this further.

kempiejon

I was chatting about how dominant the US had become in the global trackers and how dominant the M7 were within that index.
I found a couple of interesting etfs for further research; Xtrackers MSCI World ex USA EXUS and an equal weighted USA which should reduce Mag7 the Invesco Markets SP 500 EQUAL WEIGHT - SPEX

Qyburn

Sunnylifeover50plan said:

Would anyone be wise to bet against the US?

Because it has at the helm someone who doesn't mind trashing any country's economy, including his own.