Anti US bias world index funds

DeadlyD

eskbanker said:

bathblue said:

@eskbanker - I'm thinking of diluting the US indexes. This could be done by purchasing separate region index trackers. However, the Aberdeen and AJ Bell funds seem an easier way of changing the region mix.

Sure - my point was really that if you have a desired allocation in mind, then see if there's a single product that fits, rather than specifically looking for a second one to sit alongside a cap-weighted tracker.

@eskbanker what sort of single products would fit? I’m looking to move my US bias HSBC multi asset fund which is along side an equal proportion to a Fidelity Multi Asset Allocator (growth) 

dunstonh

HSBC GS tend to be broadly similar to market capitalisation on the equities side.
VLS has home bias.

You could build a portfolio of tracker funds to match the FTSE GWA All World which would reduce your North American allocation.  The GWA is an alternative weighted index using FTSE all world as the basis point.

Or you could pick a global tracker exc US and then a US tracker to run alongside it with your desired weightings.

DeadlyD

@dunstonh so something like the HSBC FTSE 100 index? I want to get away from US equities as much as possible for personal reasons, read between the lines of course! And away from investment in the Mag 7 
I can’t find FTSE GWA (this is on HL platform though) 

Albermarle

DeadlyD said:

eskbanker said:

bathblue said:

@eskbanker - I'm thinking of diluting the US indexes. This could be done by purchasing separate region index trackers. However, the Aberdeen and AJ Bell funds seem an easier way of changing the region mix.

Sure - my point was really that if you have a desired allocation in mind, then see if there's a single product that fits, rather than specifically looking for a second one to sit alongside a cap-weighted tracker.

@eskbanker what sort of single products would fit? I’m looking to move my US bias HSBC multi asset fund which is along side an equal proportion to a Fidelity Multi Asset Allocator (growth) 

Both those funds have a very similar % of US

Albermarle

kempiejon said:

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

Another alternative is to have a tracker for the 'MSCI Mid Cap Index'
This no M7 in it and the US % is only 38%.

In the last 3 months it has lost 9% compared to more like 15% for the usual global trackers ( in GBP).
Of course though it is lagging behind on 5 year performance ( 45% to 55% )

eskbanker

DeadlyD said:

eskbanker said:

bathblue said:

@eskbanker - I'm thinking of diluting the US indexes. This could be done by purchasing separate region index trackers. However, the Aberdeen and AJ Bell funds seem an easier way of changing the region mix.

Sure - my point was really that if you have a desired allocation in mind, then see if there's a single product that fits, rather than specifically looking for a second one to sit alongside a cap-weighted tracker.

@eskbanker what sort of single products would fit? I’m looking to move my US bias HSBC multi asset fund which is along side an equal proportion to a Fidelity Multi Asset Allocator (growth) 

Would fit what?  My point was that anyone with a geographic allocation in mind, with a sufficient rationale not to use relatively unadjusted global cap weighting, should identify what that requirement looks like before identifying how best to meet it - I'm not saying there necessarily is a single product that would work, but it's impractical to identify answers until knowing the question, so anyone looking to reduce US exposure needs to have an idea of how much, if any, US they want, and what to replace it with....

noclaf

My work pension is split between 3 equity funds: North America, HSBC Sharia and a Global Equity fund....was originally an equal split but I have recently rebalanced the allocations so most of it is in the Global fund. It will still be fairly volatile if course but whilst actively contributing with a 15 ISH year timeframe I am not concerned...yet

My SIPP and S&SISA are with Fidelity and all in ETF's....I've taken the easy/lazy option of adding ETF's to rebalance away from US Equities e.g: adding FTSE 100, a Gold ETF, EM and bonds a couple of months back...however also aware how intertwined the markets are so think it will practically difficult/impossible to insulate fully against the market noise....I wouldn't want to be fully out of the US markets either.

DeadlyD

I’m in drawdown so don’t have that luxury! Looking to switch to a Global equity fund that’s not as heavily US biased.