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Is geographical concentration in global funds a concern for a UK investor? : UKInvesting


For the sake of clarity, I’m currently invested in vanguard ftse global all cap, with a small UK tilt for some home bias.

If I was investing in a global market cap fund in the 80s/90s, around 40% would have been invested in japan, which is know about 7%. Who would have predicted this downturn for japan?

Obviously past performance is not indicative of future results, but perhaps we can understand that the US is very pro-business and pro-entrepreneurs.

But really, a global index tracker is a momentum bet, that those economies that have done well recently will continue to do so.

Would a more prudent approach be a more equal split across regions (APAC, EMEA, North America)? I believe it would be the more “defensive” option.

Interested in some discussion on this.



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