ETF Portfolio X-Ray: Accuvest's Global Core Equity

There is no single recipe to building an ETF portfolio. But understanding how a portfolio is built is key to picking the right one. And choices certainly abound, with hundreds of ETF strategist portfolios commanding nearly $100 billion in combined assets today.

For that reason, we are setting out to better understand how ETF strategists go about creating these portfolios in a series of interviews that look under the hood of some of the ETF portfolios available to retail, institutional and advisor clients alike.

Today’s Portfolio: Global Core Equity/International Equity                      

Provider: Accuvest Global Advisors at Walnut Creek, California

Total AUM: $394 million

Who We Talked To: Dave Garff, President and Chief Investment Officer

Portfolio AUM: $100 million

Primary Goal:

To get exposure to global equities, with a focus on investing in single-country ETFs targeting the most attractive countries in the world

Methodology:

Each month, Accuvest ranks individual countries based on four main factor groups: fundamentals, momentum, risk and valuation. The methodology combines those group scores into a composite rank, with the most attractive countries at the top of the list.

Based on the MSCI ACWI benchmark, Accuvest then tilts the portfolio to the more attractive countries, buying single-country ETFs to get the exposures.

Target Client:

Accuvest’s clients are institutional clients and advisors looking for a different approach to global and international investing.

Asset Allocation Breakdown:

ETFs Included In Portfolio:

iShares MSCI Australia ETF (EWA | A-93)

iShares MSCI Austria Capped ETF (EWO | B-93)

iShares MSCI China ETF (MCHI | B-30)

Deutsche X-trackers MSCI Germany Hedged Equity ETF (DBGR | B-77)

iShares MSCI Hong Kong ETF (EWH | B-100)

iShares India 50 ETF (INDY | D-90)

iShares MSCI Indonesia ETF (EIDO | B-100)

iShares MSCI Israel Capped ETF (EIS | B-62)

Deutsche X-trackers Japan JPX-Nikkei 400 Equity ETF (JPN)

iShares MSCI South Korea Capped ETF (EWY |B-98)

iShares MSCI South Africa ETF (EZA | B-96)

iShares MSCI Taiwan ETF (EWT | B-100)

iShares MSCI Thailand Capped ETF (THD | B-99)

iShares MSCI Turkey ETF (TUR | B-100)

iShares MSCI United Kingdom ETF (EWU | A-99)

First Trust Large Cap Core AlphaDex Fund (FEX | B-73) – (26.7% of U.S. weighting)

iShares Core S&P 500 ETF (IVV | A-97) – (32.7% of U.S. weighting)

All ETFs? Yes

Fees: 0.25%

Performance: Global Core YTD +0.62%

Contact Cinthia Murphy at [email protected].