According to it, the current market cap of the World is $85.5 trillion.
USA accounts for $35 trillion, so 41%, much less than 55% in VT.
Interestingly, China&India have a market cap of $15.5 trillion, 18% of the World. Much more than the typical share of the whole EM in an All-World ETF.
Kind of sad that we cannot really invest in the whole World.
The FTSE Global All Cap index (base for VT) has a market cap of $53 trillion and 7900 companies
compared to the mentioned $85 trillion of actual World market cap and 52’000 companies!
Just think about it:
in VT, you invest 55% in USA and 4% in China&India, easily a 10:1 ratio
you mean you want to buy when its cheaper than today. what if it’s never?
Edit: I checked the actual chart and see the trend is bearish. So you mean you wait until it starts going up again? Did you check how big is the market cap of the index?
Chinese A-stocks (A-Shares): Stocks of Chinese companies that are listed on the Shanghai or Shenzhen stock exchange and traded in local currency.
This category has been exclusive to Chinese investors. However, professional foreign investors with a special license are able to invest in these stocks under certain restrictions.
Chinese B-stocks (B-Shares): Stocks of Chinese companies that are listed on the Shanghai or Shenzhen stock exchange and traded in foreign currency.
This category has been open for foreign investments. Since the restrictions on A-Shares have been lowered, these shares tend to be losing liquidity.
Hong Kong H-stocks (H-Shares): Stocks of Chinese companies that are listed on the Hong Kong stock exchange and traded in Hong Kong Dollar (HKD).
This category has been open for foreign investments as well. Most institutional investors prefer H-stocks due to their relatively high liquidity.
Yes I actually expect it to fall more and expect it to reverse at the same time as other Chinese ETFs and emerging markets in general. There is a chance that it could already be at its low point as it now matched the Feb 2016 lows and bounced.
China-A shares are traded on the domestic market. They are the most volatile.
CSI 300 index (Top 300 A-Shares) another 2% lower which brings it again closer to multiyear lows in price as well as historical lows in P/E and P/B ratios.
MSCI China A and CSI 300 mostly overlap (the MSCI has 400 constituents) so this is indeed not a very good representation of the entire A-shares landscape.
I also found no CSI 800 ETF, but a quick search returned the:
Xtrackers Harvest CSI 500 (AMEX:ASHS)
It still makes me wonder, the one you found follows MSCI All China, which has a market cap of $3tn. The total market cap of Shanghai, Shenzhen and Hong Kong however is $11tn. Where are the missing $8tn? I don’t think they are all non-negotiable.
still considerably more than CSI 800, but I don’t think there’s as much as $8tn left out. I don’t think entire Hong Kong counts towards Chinese shares either.
It’s a bit like MSCI Poland, it’s basically the WIG20 ($60bn), widely ignoring hundreds of companies of the broad WIG ($160bn).
I wonder how these discrepancies affect actual country weights in All-World indices…
There are no “weights” for countries! They just take the company by its market cap. If they can’t get a certain company, they just don’t take it into the index. They don’t compensate some companies missing in country X by adding more companies of that country.
If 100% of US Market Capitalization qualifies for the VT, but only 10% of Chinese does, then you get an incorrect ratio of 10:1 which you’ve only just complained about. The imperfection lies in the underlying index and a narrow choice of stocks from some countries, while others are broadly represented.
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