By Carl Delfeld of Chartwell Partners and Chartwell ETF.com
The most popular and largest international exchange-traded fund on the market is the iShares MSCI Europe, Australia and Far East (EFA) ETF which is a basket of 23 well developed markets. One issue is that the countries in the (EFA) ETF basket are weighted by their market capitalization or market value.
This leads to the UK and Japan together accounting for 42% of an EFA investor's total exposure. Add Germany and France and you are up to 62%. Meanwhile, your exposure to some promising markets is miniscule; Singapore, 1.1%, Ireland, 0.65% and Sweden 2.3%.
Doesn't it make more sense to weight the countries equally?
Chartwell Partners Asset Managment has an equal-weighted EFA ETFfolio which it manages on the FOLIOfn platform. This model ETFfolio is up 30.3% exclusive of fees since it was established on June 19, 2006 while the EFA exchange-traded fund is up 20.7% during the same time frame.
The Equal Weight EFA ETFfolio is only one of the fourteen ETFfolios available to investors through Chartwell Partners. The others are:
Core Conservative ETFfolio
Fixed Income ETFfolio
Global Dividend/Income ETFfolio
World Economic Freedom ETFfolio
Country Rotation ETFfolio
Country Rotation Momentum ETFfolio
Country Rotation Value ETFfolio
Global Sector Rotation ETFfolio
Global Growth ETFfolio
Emerging Markets ETFfolio
Asia-Pacific ETFfolio
Global Long/Short Strategy ETFfolio
Global Innovation ETFfolio
Chartwell uses these folios as building blocks to develop custom global portfolios using a core/satellite strategy.
For more information and media inquiries, contact Carl Delfeld at 719.264.1503 or at cdelfeld@comcast.net
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