Best way to compare pension funds for long term growth?

Veloflyer

You wouldnt switch to global ex US (although it would have done much better than US this year).   You would just reduce the weighting to US to something more historically comfortable.   Currently, you are holding a global fund that includes a heavy US weighting, PLUS a further US holding, which increases it further

I am aware that my weighting is heavily US biased. Whether I should be painfully aware of it is a moot point. If not global tracker ex US, then what low cost tracker perhaps?   

dunstonh

I am aware that my weighting is heavily US biased. Whether I should be painfully aware of it is a moot point. If not global tracker ex US, then what low cost tracker perhaps?   

Personally, I use individual country/regional trackers as it's cheaper and weighted to my preferred benchmark (which underweights US by 6% currently).   However, if you prefer a single global tracker then they are variations of a theme.    A FTSE all world, all cap or MSCI equivalent is what most would look at.

Alexland

Veloflyer said:

 If not global tracker ex US, then what low cost tracker perhaps?   

It's tricky particularly as I don't want to invest in Emerging Markets (as you can never really own China companies and the VIE structure is lacking basic shareholder rights) so that rules out All-World etc for me and I prefer the simplicity of using single-fund/etf global trackers without needing to maintain my own geographic weightings.

I tend to have most of my equities exposure through FTSE Developed World (around 70% US) and less through MSCI World (72% US) trackers and although those might sound like heavy US allocations it's worth remembering that many successful global companies choose to base themselves in the US and if you were to unwind the valuation premium of the US shares then the proportion of actual company ownership would be more balanced between US and non-US.

So I am saying there's already plenty of US in a global tracker and while I am not advocating correcting that by tilting your portfolio away I am saying that's really enough US so no need to add S&P500 funds and maybe get diversification from non-equities now there are options that look attractive again.

Veloflyer

dunstonh said:

I am aware that my weighting is heavily US biased. Whether I should be painfully aware of it is a moot point. If not global tracker ex US, then what low cost tracker perhaps?   

Personally, I use individual country/regional trackers as it's cheaper and weighted to my preferred benchmark (which underweights US by 6% currently).   However, if you prefer a single global tracker then they are variations of a theme.    A FTSE all world, all cap or MSCI equivalent is what most would look at.

A already hold those two, and as aforesaid, they are heavily US weighted.

Veloflyer

Alexland said:

Veloflyer said:

 If not global tracker ex US, then what low cost tracker perhaps?   

It's tricky particularly as I don't want to invest in Emerging Markets (as you can never really own China companies and the VIE structure is lacking basic shareholder rights) so that rules out All-World etc for me and I prefer the simplicity of using single-fund/etf global trackers without needing to maintain my own geographic weightings.

I tend to have most of my equities exposure through FTSE Developed World (around 70% US) and less through MSCI World (72% US) trackers and although those might sound like heavy US allocations it's worth remembering that many successful global companies choose to base themselves in the US and if you were to unwind the valuation premium of the US shares then the proportion of actual company ownership would be more balanced between US and non-US.

So I am saying there's already plenty of US in a global tracker and while I am not advocating correcting that by tilting your portfolio away I am saying that's really enough US so no need to add S&P500 funds and maybe get diversification from non-equities now there are options that look attractive again.

Emerging markets are too much of a punt for me. Globals are heavily US weighted - and I already have 4 with minor variations in each. Direct S&P trackers are about 25% of my total fund. Pot total in US based companies is about 80% of pot - which seems over-weighted. Ordinary gilts may be a punt for diversification perhaps.