Equal weight equivalent of VWRL (or similar)
Posted: July 26th, 2020, 11:02 am
Hi All.
With certain key tech stocks, big components of indexes, looking (arguably) toppy, I was musing whether a conceptual equal-weight global equity ETF might be wise. For background, all my family's investments are of the form
I could be wrong, but I suspect such a thing does not yet exist - perhaps due to logistical reasons relating to not easily being able to compare (or invest equally in) regions. With VWRL's current 3473 stock holding, if applied literally, it would mean each holding would be c0.03%.
However, perhaps one could synthesise something close to it at similar cost, by putting together regional level equal weighted ETF's in keeping with the existing regional weightings of VWRL (e.g. 58.7% North America) and using non-equal weighted ETF's for regions where they don't exist.
In this context, has anybody
I would prefer Vanguard products, all things being equal.
Regards, Newroad
With certain key tech stocks, big components of indexes, looking (arguably) toppy, I was musing whether a conceptual equal-weight global equity ETF might be wise. For background, all my family's investments are of the form
- 60/40 for my wife and I (SIPP's, ISA's) or 70/30 for my children (JISA's) equity/bonds
- Within those splits, for each sub-investment, 50% passive (VWRL/VAGP), 50% active (one global equity investment trust/one global bond investment trust)
I could be wrong, but I suspect such a thing does not yet exist - perhaps due to logistical reasons relating to not easily being able to compare (or invest equally in) regions. With VWRL's current 3473 stock holding, if applied literally, it would mean each holding would be c0.03%.
However, perhaps one could synthesise something close to it at similar cost, by putting together regional level equal weighted ETF's in keeping with the existing regional weightings of VWRL (e.g. 58.7% North America) and using non-equal weighted ETF's for regions where they don't exist.
In this context, has anybody
- Previously thought about this, and/or
- Got an idea of the best way to achieve it, and if so
- Know the best way to back test the performance vs, say, VWRL (to see if it's worth doing at all, amongst other things)?
I would prefer Vanguard products, all things being equal.
Regards, Newroad