If you read Barry Ritholtz you know that this index exists but finding information is not that easy. I found this PDF on the FTSE site.
Like a lot of global mega cap-tilted indices it is about 50% US (52.03% to be precise). The UK and Japan are the other two big countries at 11.97% and 7.39% respectively; I am surprised Japan is not a little heavier weighted in the index. France is the only other country above 5% at 6.28%.
There are some interesting countries like Norway, Greece and Argentina included but they are so small that I don't think they can have any impact.
Over on Barry's site there are some comments that make fun of this along the lines of they will make an ETF out of this and it will be a dud. I am aware two ETFs the mimic similar indices; the iShares S&P Global 100 (IOO) and the streetTRACKs Global Titans (DGT). IOO and DGT are almost identical and any investment product that might come from the CNBC index will fall right in line.
You might find some commentary saying that these global mega cap funds are duds. More likely is that it has been a while since mega caps provided any long-lasting and substantial leadership. At some point mega caps will lead the market leaving other once hot segments for dead.
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1 comments:
Megacaps etfs, like dgt, look good on my chart. My memory is that they indeed did lead the markets in the 90's. I remember that the Economist had a cover title, "Bigger is Better". The small caps had just finished their run in the 80's and the buzz was about global companies replacing single country bets. Megabucks were made with KO and Ge.
Roger, speaking of changing leadership, excellent article on commodities. John Mauldin's outside of the box letter:"Long only portfolios are going to be subject to increased volatility and quick movements, both up and down. You need to think carefully about your exposure in these markets." Is this an allocation class that will need to be trimmed for profits, selling some when there is strength. As the full article points out a lot of sound premises about demand for commodities could prove to be wrong at a time that commodities may be in funds as high as 30%. Would be nice to have a broad based means to follow the rising tide of allocation as a bubble signal.
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