RetireJapan

N00bster wrote: ↑Tue Jun 26, 2018 1:58 pm Even though I am not sure I will take that route anymore, let me (partially) answer my own question: there exist total world funds with a lower US allocation, such as this one: https://www.rakuten-sec.co.jp/web/fund/ ... 90C000G7W3

Here US would only make one third if I understand correctly. The fund seems to be underperforming compared to other usual world funds however.

Probably because it is missing out on the US stock boom

RetireJapan wrote: ↑Tue Jun 26, 2018 11:22 pm

N00bster wrote: ↑Tue Jun 26, 2018 1:58 pm Even though I am not sure I will take that route anymore, let me (partially) answer my own question: there exist total world funds with a lower US allocation, such as this one: https://www.rakuten-sec.co.jp/web/fund/ ... 90C000G7W3

Here US would only make one third if I understand correctly. The fund seems to be underperforming compared to other usual world funds however.

Probably because it is missing out on the US stock boom

You beat me to the punchline

That's more or less all there is to it.

Honestly, emotionally I feel the same way about the US "Oh no, nearly 50% of all my investments are in the US!" but it helps if I remind myself that while they are US domiciled, most of them are huge global companies, who make significant parts of their profit outside the US.

There's a pretty good chapter on this in Bogle's common sense for mutual funds. I don't have it on-hand at the moment, but regarding global diversification, his attitude(for US investors who don't have the currency risk) is that a well-diversified US fund is already globally diversified and that any financial crisis that affects them is going to be hitting other regions too. I'm definitely not going to take that attitude as I'm not in the US so currency risk is still real and have costs/taxation concerns americans wouldn't, but it does somewhat put my mind at ease regarding the size of my US allocation

Such wisdom on this forum. Thanks everyone for the wise insight.