Hi folks … it’s been a little while since I saw a posting on international funds. So I thought I’d start one. Curious what % of your equity fund holdings are in international stocks and what your favorite funds are. I’m currently only at approximately 4% and I am evaluating GSIYX for an addition. International has underperformed for so long now that it’s hard to get too excited about it. But I figure I should have more. Thx for your inputs
Comments
Dollar bottomed in 2008-11 around 72. Now it is 104.66, so +45.36% of the cumulative US fund outperformance in the last dozen years is just due to the currency factor.
Many diversified funds (including TDFs) may have substantial exposure to foreign markets, but not enough for them to be labeled global.
Did anything at Grandeurpeak change, causing you to give them a second chance? Fool me once and all.Edit: misread ticker in Mike's OP.~10% of our stock exposure is in Foreign which is our standard allocation.
Most of it comes via GSIHX, then secondarily via PRGSX, both NTF at Fido.
We were unaware of GSIHX until stumbling onto GSIYX near BOY 2024 while managing a friend's 401k portfolio that was transitioning from one Adm to another.
Bottom line, in FLG land, and possibly all of Foreign, there appears to be GSIHX and everybody else. We plan to hold GSIHX indefinitely and may roll our PRGSX allocation into it at some point when consolidating.
- Equities 46%
- Fixed Income 44%
- Other (real estate / infrastructure / metals) 10%
That’s from Fido’s analytics and looks correct to me.
FWIW - In recent days I took the equity exposure up a bit from 40% to 46%.
Favorite Funds? I don’t have any. But I generally allocate 10% to each fund.
I know we could have a separate thread on that topic but it will never be as scientific as what the magazine team would put out.
P.S.: I am at 2% of PV for international equity and 75% of that is in a trading account, which means I really do not have any dedicated international equity investment.
Thanks.
lipper dataset means MFO screener (and most others) classify 'foreign' not based on corporations' country/region based economics, but HQ location. ridiculous!
https://www.mutualfundobserver.com/discuss/discussion/comment/175924/#Comment_175924
I have been reasonably happy with IHDG and FYLD. GRID is 50% foreign, but it's not the kind of fund most people would want to build an IRA around.
I was happy with DODWX, but it didn't fit into my IRA planning given the fees on it at Fido. And I don't feel the need for more foreign in the taxable.
Approximately 26.5% of the portfolio was allocated to foreign stocks via two international funds:
1) MFS International Equity Fund Class 3A (CIT)
2) ARDBX (relatively new holding)
As Yogi mentioned, the dollar is strong. I don't think international stocks will out perform domestic until that trend reverses. My own opinion is domestic stocks will continue to out perform for the foreseeable future.
He has done a super job in the last two years with just about 6 foreign stocks. They are up 75%, a lot better than his domestic picks.
We also have about 2% in Emerging markets
We own MOWNX CVISX EWJV BISAX SIGIX GQGPX and KGIIX and a smattering of some Chinese ETFs
My primary international fund is comprised almost entirely of developed foreign large-caps.
I wanted a foreign small-cap fund or EM equity fund to complement it.
ARDBX uses a strategy similar to that of ARTKX which is applied to foreign small-caps.
Both comanagers previously worked with David Samra on ARTKX and are well-versed in the strategy.
I've been interested in ARDBX for a while but the high expense ratio (1.43%) was a major deterrent.
The highest expense ratio for my other funds is no greater than 0.50%.
The Insights section on the ARDBX home page has useful info regarding the fund's investment process.
https://www.artisanpartners.com/individual-investors/investments/international-value-team/international-explorer-fund-ardbx.html
David Snowball authored an article about ARDBX in 2022.
https://www.mutualfundobserver.com/2022/06/launch-alert-artisan-international-explorer-fund/
In my taxable account, I am planning a move into IDVO. This is from the same shop as DIVO, and derives benefit from European volatility in it's approach of using covered call options to enhance the distributions.
Not sure because I don’t use X-ray but I’d guess 25-35% international.
Favorites:
Taxable: passive, dividend paying ETFs (so you can declare foreign taxes withheld). DFIV, FIVA, SCHY, AVIV, VIGI, VYMI. (I own the first one.)
Tax-deferred: actively managed and growth — FOSFX and FIGFX (I own the first); and for EMs: FSEAX and FEDDX (own both).
I also have a portfolio of individual (foreign) stocks.
See (www.globalxetfs.com/sector-views-sp-500-sensitivity-to-global-factors/).
Since 2010, I don't have any foreign exposure.
I read with great interest Devesh Shah thoughts this morning and reasoning on helping to take the international allocation on the endowment he serves on down substantially.
The question I have for him with zero criticism is I have read and watched Nobel prize winners like William Sharpe and Eugene Fama and Fama’s frequent collaboration Ken French suggest that there is very little signal in observations five , ten, or even twenty years out.
Shah who is clearly a very smart person must know that.
In order to move as sharply away from where the global portfolio clears or reaches equilibrium he is in fact making a big tactical bet.
If we enter a period like 2000-2010 where essentially the S&P had zero returns ( not impossible given the elevated valuation of US stocks) the “bet” the board made goes against the idea of being market agnostic.
I’m curious if they aren’t succumbing to recency bias even though the recency has persisted for a very long time?
The July MFO article will try and highlight some of these funds, the international stocks, and hopefully inspire some to switch from passive to active in that area. Only time can tell if such active decisions work. One thing we do know is passive has not done what it promised abroad. It works beautifully in the USA but not abroad, at least not consistently.
I'm talking to myself in the following, but anyone can jump in. Passive is a funny term. IHDG seems pretty darn active in its thesis: I should add that Devo's post was a fun read. Looking forward to the next article.
See Thornburg article dated May 17, "forget mag 7 and look at Euro fantastic 5"...SAP, ASML, AstraZen, LVMH, Novo...has actually outperformed since Jan 2022...hmm, no kidding, really?.
Isn't Intl investing really a currency play on a weaker dollar...which might be in our near future, no?
I've got monies in TSUMX Thornburg Summit Fund...multi asset...hold intl stocks and bonds to some degree...
Good Luck and Good Health to ALL,
Baseball Fan