Q: Hi, I’m starting to slowly invest outside of North America because Canada is a little too layed back, and government is not very aggressive, they would rather just tax us.( my opinion), and the U.S. is what it is right now, and markets do not like uncertainty.
I started with VIDY for now, but I see that about 20% is in Japan, I don’t think this is bad but it is quite a bit.
My question for future buying, is country specific that important? And could you list 5-6 countries outside NA that are your favourite to invest in.
Thanks
I started with VIDY for now, but I see that about 20% is in Japan, I don’t think this is bad but it is quite a bit.
My question for future buying, is country specific that important? And could you list 5-6 countries outside NA that are your favourite to invest in.
Thanks
5i Research Answer:
Country allocation is quite important, but it is also very difficult to predict performance with any degree of accuracy or repeatability. Most ETFs, though, will 'tilt' weightings one way or another. VIU, for example, one of our favourites, is currently 23% Japan. In terms of specific countries, we would suggest Japan, Korea, Switzerland, Vietnam, Poland.