The ETFs will cover Canadian bonds, Canadian equities and
International equities asset classes.
As I'm sure you are aware, other U.S. and
international equity asset classes made 50 to 100 percent more than large cap blend over the last 15 years.
The majority of my timing is more conservative, including all the important U.S. and
international equity asset classes plus high grade and high yield bond funds.
They offer cheap access to systematic risk exposures, such as the various U.S. and
international equity asset classes as well fixed - income investments.
Another thing that I wonder about recently is to increase my exposure to
the international equity asset class.
Not exact matches
In recent years they have added
international equities and small - cap stocks —
asset classes that come with higher volatility than sturdier blue chips, but also offer the promise of higher returns.
Still, the authors suggest that, as an
asset class, U.S. investors should fully hedge their exposure to
international developed - market
equities.
Mr. Brooke helped define private
equity as an
asset class throughout his career, and was one of the key individuals responsible for building interest in private
equity on an
international scale, particularly in Europe, Asia, and Latin America.
Fehr then conducted an analysis to assess which of seven
asset classes —
international equities, U.S.
equities, Canadian
equities, bonds, currencies, commodities or cash — are receiving the most positive cash flows on a global basis.
As of 9/30/13, Rockwell Automation Inc. represented 2.9 %, Cimarex Energy Co. 1.2 %, Dover Corp. 3.5 %, FedEx Corp. 2.7 %, General Dynamics Corp. 3.0 %, Foot Locker, Inc. 1.3 %, Ultra Petroleum Corp. 0.4 %, Laboratory Corp. of America Holdings 1.3 %, Range Resources Corp. 0 %, Staples, Inc. 0.4 %, Walter Energy, Inc. 0 %, Cenovus Energy, Inc. 1.0 %, Encana Corp. 1.3 %, Blount
International, Inc. 0.1 %, Apache Corp. 0 %, UnitedHealth Group, Inc. 3.2 %, MasterCard, Inc.,
Class A 1.8 %, Flowserve Corp. 0 %, Devon Energy Corp. 1.6 %, Kaydon Corp. 0 %, SKF AB 0 %, Northrop Grumman Corp. 0 %, and Teledyne Technologies, Inc. 0 % of the Oakmark
Equity and Income Fund's total net
assets.
The Three Fund Portfolio uses three basic
asset classes: Domestic (US)
Equities,
International Equities, and Bonds.
As of 03/31/14, Baker Hughes, Inc. represented 2.4 %, General Dynamics Corp. 2.2 %, Bank of America Corp. 3.2 %, Oracle Corp. 3.5 %, UnitedHealth Group, Inc. 2.5 %, General Motors Co. 3.0 %, MasterCard, Inc.,
Class A 1.9 %, FedEx Corp. 2.6 %, Scripps Networks Interactive, Inc.,
Class A 1.4 %, Philip Morris
International, Inc. 2.4 %, Ultra Petroleum Corp. 0.7 %, Bruker Corp. 0.3 %, HNI Corp. 0.04 %, Blount
International, Inc. 0.1 %, Atlas Air Worldwide Holdings, Inc. 0.1 %, Cimarex Energy Co. 0 %, Concho Resources Inc. 0 %, Crane Co. 0 %, Encana Corp. 0 %, Hospira, Inc. 0 %, Abbott Laboratories 0 %, Quest Diagnostic, Inc. 0 %, Knowles Corp. 0.5 %, Dover Corp. 2.7 %, and Wells Fargo & Co. 1.0 % of the Oakmark
Equity and Income Fund's total net
assets.
The securities mentioned above comprise the following percentages of the Oakmark
Equity and Income Fund's total net
assets as of 03/31/18: MasterCard, Inc.,
Class A 2.8 %, TE Connectivity, Ltd. 4.1 %, Jones Lang LaSalle, Inc. 0.6 %, Bank of America Corp. 4.8 %, HCA Healthcare, Inc. 1.3 %, General Motors Co. 4.7 %, CVS Health Corp. 1.9 %, Nestlé ADR 2.8 %, Citigroup Inc. 2.2 %, Arconic, Inc. 1.1 %, UnitedHealth Group, Inc. 2.4 %, Baker Hughes a GE Co. 0.5 %, Philip Morris
International, Inc. 2.0 %, Anadarko Petroleum Corp. 0.5 %, Carlisle Companies, Inc. 0.2 %, Comcast Corp.,
Class A 1.0 %, CoreLogic, Inc. 0.4 %, Liberty Broadband Corp.,
Class C 0.4 %, Liberty Broadband Corp..
As of 06/30/15, Bank of America Corp. represented 3.8 %, Omnicare, Inc. 1.3 %, MasterCard, Inc.,
Class A 2.0 %, Philip Morris
International, Inc. 1.5 %, Foot Locker, Inc. 2.4 %, General Motors Co. 3.2 %, TE Connectivity, Ltd. 2.6 %, Oracle Corp. 3.6 %, Union Pacific Corp. 1.5 %, Flowserve Corp. 1.7 %, UnitedHealth Group, Inc. 1.8 %, Lear Corp. 1.5 %, CVS Health Corp. 2.8 %, National Oilwell Varco 1.6 %, Glencore PLC 1.2 %, Dover Corp. 2.7 %, Ultra Petroleum Corp. 0.4 %, Knowles Corp. 0.3 %, General Electric Co. 1.0 %, Kate Spade New York 0.2 %, Atlas Air Worldwide Holdings, Inc. 0 %, FNF Ventures 0 %, and Lonmin PLC 0 % of the Oakmark
Equity and Income Fund's total net
assets.
International equity ETFs have now gathered $ 137 billion in net creations this year, more than any other
asset class.
On the other hand, in less efficient
asset classes — such as small - cap, mid-cap or
international equities — active portfolio managers may have a greater opportunity to outperform.
The Edward Jones Investment Policy Committee offers its viewpoints on the U.S. economy,
equities, the bond market,
international markets and
asset classes, as well as a special topic of interest to investors each quarter.
The securities mentioned above comprise the following percentages of the Oakmark
Equity and Income Fund's total net
assets as of 12/31/17: Bank of America Corp. 5.3 %, TE Connectivity, Ltd. 3.9 %, UnitedHealth Group, Inc. 2.6 %, Ally Financial, Inc. 1.8 %, Dover Corp. 2.6 %, CVS Health Corp. 2.2 %, Baker Hughes a GE Co. 1.2 %, General Electric Co. 0 %, Philip Morris
International, Inc. 2.0 %, Oracle Corp. 2.3 %, MasterCard, Inc.,
Class A 2.6 %, General Motors Co. 5.1 %, Foot Locker, Inc. 1.2 %, Flowserve 0 %, Johnson Controls
International PLC 0.6 %, PDC Energy Inc. 0.4 %, TD Ameritrade Holding Corp. 0 %, Herman Miller, Inc. 0 %, Oshkosh Corp. 0 %, VWR Corp. 0 %, Blockchain 0 %, Long Blockchain 0 %, LongFin Corp 0 %, Riot Blockchain 0 %, Intercontinental Technology 0 %, Nodechain 0 %, The Crypto Company 0 % and New York Times Co. 0 %.
We replaced the balanced fund with individual
asset class securities (index funds): a Canadian
equity index fund, a U.S.
equity index fund, an
international equity index fund, a bond index fund, etc..
Although there was a reasonable split between
equity and bond, the Canadian Equity asset class was over-weighted and US and International Equity were underwei
equity and bond, the Canadian
Equity asset class was over-weighted and US and International Equity were underwei
Equity asset class was over-weighted and US and
International Equity were underwei
Equity were underweighted.
This appears unlikely, so an effective diversification strategy should include a variety of
asset classes, regardless of how diversified the basket of
international equities might be.
There may be other more desirable
asset classes to choose from: cash, commodities,
international bonds or
equities, etc..
The Three Fund Portfolio uses three basic
asset classes: Domestic (US)
Equities,
International Equities, and Bonds.
The idea of moving to more conservative
equity funds in retirement is not unusual but my position is to maintain the more diversified
equity portfolio (large, small, value, growth, REITs U.S. &
international asset classes).
The investor should hold a portfolio of no more than six core
asset classes, namely domestic
equities, emerging market
equities,
international equities, government fixed income, corporate bonds and real estate.
Mutual Fund
Asset Classes Money Market Money Market Fixed Income Domestic Fixed Income Global and High Yield Fixed Income Balanced Domestic Balanced Global Balanced
Equity Domestic
Equity Global and
International Equity Sector
Equity U.S.
Equity Specialty Specialty
The indexes representing each
asset class are: S&P 500 ® Index (for Large Cap
Equity); Barclays U.S. Aggregate Bond Index (for Fixed Income); MSCI EAFE Index (for
International Equity); Russell 2000 Index (for Small Cap
Equity); and Citi Treasury Bill 3 - Month Index (for Cash).
Although there was a reasonable split between
equity and bond, the Canadian Equity asset class was over-weighted and US and International Equity were underwei
equity and bond, the Canadian
Equity asset class was over-weighted and US and International Equity were underwei
Equity asset class was over-weighted and US and
International Equity were underwei
Equity were underweighted.
If we add global diversification to our portfolio and include 20 % U.S.
equity and 20 %
international equity, the four
asset class portfolio return rises to 10.34 % per year while portfolio risk declines to 9.67 %.5
We're big on indexing, so most of our investments in the
equity markets are simply divvied up by
asset classes covering the total U.S. market, the Nasdaq and the
international markets.
Like major
asset classes,
international equity factors» returns tend to be more correlated during recessions and bear stock markets.
The lists below single out some of favorite index funds covering the
international and emerging markets
equity asset classes.
Assume we hold a portfolio of 5 ETFs — BND (bonds), DBC (commodities), VEU (
international equities), VNQ (REITs), VTI (US
equities), which represent 5 major
asset classes.
We are recommending our clients maintain their target allocations with an emphasis on
international equities, the alternative
asset class, and short - duration fixed income.
This Fund seeks to provide capital appreciation and some income by investing in both
equity and fixed income securities based on a prescribed allocation among four distinct
asset classes: Canadian bonds, Canadian
equity, U.S.
equity and
international equity.
This Fund seeks to provide a balance of income and capital appreciation by investing in both fixed income and
equity securities based on a prescribed allocation among four distinct
asset classes: Canadian bonds, Canadian
equities, U.S.
equities and
international equities.
This Fund seeks to provide capital appreciation by investing in
equity securities based on a prescribed allocation among three distinct
asset classes: Canadian
equity, U.S.
equity and
international equity.
They use a positive momentum strategy on three
asset classes — domestic
equities,
international equities, and high yield bonds, and a buy - and - hold strategy on investment grade bonds.
One other point worth noting: GMO's 7 year
asset class return forecasts as of 10/31/11: -2.3 % for
International Bonds, -1 % for US Bonds, -.8 % for cash, -.4 % for US Small Cap, 1.8 % for US Large, 5.6 % for Emerging market
equities, and 5.8 % for
International Large Caps.
The presentation focuses on the
equity asset classes (U.S.and
international, large and small cap, growth and value and real estate) every
equity investor should own, how to select the best performing mutual funds, the pros and cons of index funds, the best balance of
equity and fixed income funds and how to maximize distributions in retirement without taking the risk of running out of money.
Prior to this, the
international developed
equity asset class was unavailable in a socially responsible implementation.
The Adviser may use an active
asset allocation strategy to increase or decrease neutral
asset class exposures reflected above by up to 10 percentage points for
Equity Funds (includes domestic and international equity funds), Bond Funds and Short - Term Funds to reflect the Adviser's market outlook, which is primarily focused on the intermediate
Equity Funds (includes domestic and
international equity funds), Bond Funds and Short - Term Funds to reflect the Adviser's market outlook, which is primarily focused on the intermediate
equity funds), Bond Funds and Short - Term Funds to reflect the Adviser's market outlook, which is primarily focused on the intermediate term.