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International small cap funds; is it worth the risk?
One piece that may be missing from my portfolio seems to be an international small cap fund, one that does invest in emerging markets to some extent. Years ago, had PRISX. but it is rather large. Came across QUOSX, HLMSX and a few others. I do hold ARTGX as my global stock fund, how important is it to have this piece of the pie? This would be for my Roth which will not be tapped for 10 years +
They do provide some diversification value but if you are a conservative investor (which I understand you are), it may be difficult for you to stomach the volatility in market declines. If you are holding a fund like GPIOX or GPGOX these funds also have a portion in small caps. So you might be OK with a multi-cap fund.
I would call my basic style moderately conservative, I like 5-10% of my portfolio to have some kick and be a bit aggressive. I do have emerging market stock funds and stocks, health care sector funds and etfs, and good core holdings in total market etfs, growth and dividend funds and dividend paying stocks in my 40% stock allocation, which I am kicking up to 50% this year. My taxable portfolio is my least aggressive, though with a slug of AA rated munis and dividend paying stocks. This portfolio will be used up before I dig into my less conservative IRA accounts, so time on my side for the more aggressive holdings.
Reply to @Investor: GPIOX / GPGOX are fully small-cap (and micro-cap) funds, so "a portion in small caps" is an understatement. Or maybe that was a typo and you meant "a portion in emerging markets," which is more accurate.
Comments
WTIFX
PRIDX
ARTJX
Regards,
Ted