ETF advice

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  • masonic
    masonic Posts: 23,245 Forumite
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    edited 15 January 2019 at 9:10PM
    Manesova83 wrote: »
    Sorry, just one more question for anyone out there: does it matter which country an ETF is listed in? It seems in some cases I can choose the same ETF listed on a different stock exchanges. My brokerage account's base currency is EURO.
    It only matters to the extent that your broker can access the market and how much it charges for trades on one market vs another. You may find multiple trading currencies available for an ETF on the same/different exchange. If you use a version/exchange matching your account currency then you avoid a layer of forex charges. A larger exchange would generally be preferable to a smaller one as the former will have greater liquidity and potentially lower spread.
  • beanie1602
    beanie1602 Posts: 3 Newbie
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    Hi.. looking to adjust my portfolio.is there any ETFs not heavy waited to the US.. I'm with H L platform.. Many thanks
  • cloud_dog
    cloud_dog Posts: 6,043 Forumite
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    beanie1602 said:
    Hi.. looking to adjust my portfolio.is there any ETFs not heavy waited to the US.. I'm with H L platform.. Many thanks
    At a facetious level, I think the 'iShares MSCI Japan ETF' probably has as low a US exposure as you are likely to get.

    I assume you mean a global ETF with an exposure lower than 55% / 56% that the US actually makes up as part of the global stock market?  Vanguard LS ETFs will have a lower US weighting, due to their higher UK weighting.
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  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    edited 20 April 2020 at 5:23PM
    cloud_dog said:
    beanie1602 said:
    Hi.. looking to adjust my portfolio.is there any ETFs not heavy waited to the US.. I'm with H L platform.. Many thanks
    At a facetious level, I think the 'iShares MSCI Japan ETF' probably has as low a US exposure as you are likely to get.

    I assume you mean a global ETF with an exposure lower than 55% / 56% that the US actually makes up as part of the global stock market?  Vanguard LS ETFs will have a lower US weighting, due to their higher UK weighting.
    There is no such thing as a Vanguard LS ETF. You are thinking of the LifeStrategy series of mixed asset funds, which are UK domiciled OEICs.

    You are right though, that funds which do not aim to track global equity markets by free float market capitalisation will have much lower US allocations than those that do. So a Japanese or Emerging Market ETF would have a low allocation to the US-listed companies.

    One option is an index that doesn't allocate based on market cap, such as the iShares MSCI World Size Factor ETF (ticker IWFS for the GBP-priced version in London; there are other listings). That uses MSCI's midcap equal weight index, rebalanced twice a year, and has less US than a cap weighted large-cap index.
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