Globally Diversified Portfolio (or funds) for the Long Term...your choice?

bee

Quotes from Article:
index-investor-corner

We live in a world where there are no accurate crystal balls. Thus, the prudent investment strategy is to build a globally diversified portfolio. But that’s simply (not) the necessary condition for success. The sufficient condition is to possess the discipline to stay the course, ignoring not only clarion cries from those who think their crystal balls are reliable, but also cries from your own stomach to GET ME OUT! As Warren Buffett explained, “The most important quality for an investor is temperament, not intellect.”

VT (Vanguard Total World Index Fund) seems to fit the bill for Large Cap exposure.
-2% yield, 7,895 holdings. 51% US / 46% non-US

Any thoughts on global small cap exposure?

Sven

Bernard Horn's Global Value, PGVFX is an all cap global fund, while the Pear Tree Polaris Foreign Value Small Cap is a mid-small international fund, QUSIX.

bee

Thanks @Sven PGVFX seems to perform in a similar manner to VHGEX over the longer term. Maybe even a little better over shorter time frames.

bee

Other global funds I screened for:
OGIYX
OGLYX
PRGSX
RPGEX

Crash

http://www.morningstar.com/funds/XNAS/TBGVX/quote.html (Tweedy Browne. Used to be a front-runner. I owned it, before 2000.)

bee

Thanks @Crash, risk characteristic look great, but M* mentions:

Tweedy, Browne Global Value's 2017 struggles are largely cyclical, but concerns about the fund's growing expense gap and the team's future composition are long-term issues.

Crash

bee said:

Thanks @Crash, risk characteristic look great, but M* mentions:

Tweedy, Browne Global Value's 2017 struggles are largely cyclical, but concerns about the fund's growing expense gap and the team's future composition are long-term issues.

Yup. True. +1.

ron

Quotes from Article:
index-investor-corner

We live in a world where there are no accurate crystal balls. Thus, the prudent investment strategy is to build a globally diversified portfolio. But that’s simply (not) the necessary condition for success. The sufficient condition is to possess the discipline to stay the course, ignoring not only clarion cries from those who think their crystal balls are reliable, but also cries from your own stomach to GET ME OUT! As Warren Buffett explained, “The most important quality for an investor is temperament, not intellect.”

VT (Vanguard Total World Index Fund) seems to fit the bill for Large Cap exposure.
-2% yield, 7,895 holdings. 51% US / 46% non-US

Any thoughts on global small cap exposure?
I hold MWEFX and small cap is SCHC.

Crash

Smid, not strictly small: PRIDX. Very pleased. Oops, it's all FOREIGN, rather than global.

Old_Skeet

Hi @bee,

I use VT in my global compass (world stocks) and for my bogey. The other equity etf proxies I use are AXJL (Asia ex Japan) ... EEM (emerging markets) ... EWJ (Japan) ... IEV (Europe) ... and VTI (domestic stocks). In addition, I also have in this compass GSP (commodities) ... CWB (convertibles) ... AGG (domestic bonds) ... and, SHV (short term government bonds).

It is not perfect ... but, the equity side hunts the globe pretty well.

Sven

@bee, you asked for global small cap exposure. QUSIX is a foreign small-mid cap fund.

Alternatively, Grandeur Peak funds may fit your need, but many are closed to new investors including their Global Opportunities fund. Going back to their historical record at Wasatch funds, drawdowns of Bob Gardiner's funds are considerable as in 2008. The high expense ratio is another negative consideration.

In the end, there is really few choices. Personally I use T. Rowe Price International Discovery fund - decent record, team managed, adn reasonable expense ratio.