Exchange traded fund investors seeking to diversify should consider the case for actively managed investments in China.
In the recent webcast,
Unpacking Global Markets: Getting Beyond Beta – A Conversation with Davis PM Danton Goei, Danton Goei, Portfolio Manager, Davis Advisors, argued that standard global benchmarks like the MSCI All Country World Index are overly diversified with weightings that are not conviction-based. Specifically, the MSCI ACWI includes 2,962 holdings from 77 countries with an average individual position size of 0.03%. Yet is important to note that the United States makes up 57.1% of the MSCI ACWI, so investors will potentially miss out overseas.
When considering long-term performance, Goei argued that four factors have historically helped support gains, including a conviction-weighted portfolio that is different from an index; being highly selective at the country, sector, and company level; rigorous, time-tested investment discipline; and investments a
February 24, 2021
U.S. investors are chronically home-biased in their portfolios, even while international allocations have provided better opportunities in different market cycles.
In the upcoming webcast,
Investors have looked to time-tested active approaches to enhance returns and provide greater stability, especially in times of heightened volatility. For example, the actively managed
Davis Select International ETF (NasdaqGM: DINT) focus on long-term opportunities and incorporate the money managers’ judgment experience, high conviction, low turnover, accountability, and alignment. The Davis team screens for fundamental characteristics, including cash flows assets and liabilities, among other criteria.
The management team looks to durability, adaptability, and resiliency of a company for substantial competitive advantages, superior business models, attractive financials, and superior free cash flows. They also select those with a track record of good decisions, intelli