This is a hard question to answer. Historically, splitting a total international fund into its components would've provided a small benefit, but the caveat is we're using the developed:international split that is currently in the fund, not necessarily what it was 20 years ago.
This is relevant because historically/long-term, overweighting emerging markets improved overall international performance. So if the market cap weight of EM increased by 0.5% annually to what it is today, and we backtest what it is today historically, having more EM will look better.
https://testfol.io/?s=jNEOQyvqMox
This is relevant because historically/long-term, overweighting emerging markets improved overall international performance. So if the market cap weight of EM increased by 0.5% annually to what it is today, and we backtest what it is today historically, having more EM will look better.
https://testfol.io/?s=jNEOQyvqMox
Statistics: Posted by breakfastinbed — Wed Feb 19, 2025 1:09 am — Replies 6 — Views 520