Hi Mustachians.
Last year I came here from advice and the advice I received was invaluable.
So now I return.
I am a UK citizen living in Asia, holding a tax sheltered portfolio in USD.
The portfolio is simple index fund ETFs, REIT ETF, and some Bonds ETF.
I currently have around $25k in cash that I want to deploy and I am considering how to rebalance.
My portfolio currently looks like this:
The individual funds I hold are:
VWRD 59.83%
VBK 5.65%
IWDP 8.04%
LQDE 11.04%
CASH 15.43%
I am looking only for non US domiciled funds (for Dividend tax withholding efficiencies) and ideally USD traded funds.
I have a few options in mind:
Keep on the same track- Increase US/Intl Equities
- Increase REIT
- Increase Bonds
or
Try and take advantage of the strong dollar, and at the same time add some Geo-Diversification into my portfolio.
Strong dollar & Add geo-diversity- Add Asia ex-Japan Index ETF
- Add European Index ETF
In terms of the Asia ETF, this seems to appeal to me living in Asia (though I see this makes no real sense)
But I like the idea of maybe diversifying my portfolio away from the US so much, and adding in some Asian equities to try and diversify exposure.
I am considering this fund
ISFE from iShares which is large cap Asia ex-Japan Index fund.
My biggest concern is that its 27% China and Chinese equities are at some bonkers valuation now, scarily overpriced....
In terms or Euro diversification, this would serve as some additional diversification from the US markets and should take advantage of the strong dollar.
However, my current portfolio does have a large European exposure through VWRD and it would seem that these countries are all held at their FTSE World Index benchmark levels:
VWRD HoldingsMy questions then are:
- Should I look to capitalise on the strong dollar by buying foreign equity?
- Is my Asia exposure too low, should I add a chunk of Asian equity to my portfolio for geo-diversification reasons?