I was looking an ETF that tried to replicate the world GDP but I couldn't find anything similar to that. The most similar thing I found was $VT but that takes into account market capitalization, which over represents developed countries specially the US.
I tried formating the table for reddit but I hit the character limit.
Observations:
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I use this wiki list for the GDP of every country.
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I only used the top 50 countries, as any lower is almost impossible to find semi decent ETFs. The countries in the table represent 92.39% of the world GDP.
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I divided emerging markets and developed countries according to this list and the clarifications on that page.
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Of the top 50 countries I couldn't find ETF for the following countries: Iran, Egypt, Venezuela, Bangladesh, Czech Republic.
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7 countries of the top 50 are not included in VT: Saudi Arabia, Argentina, Nigeria, Pakistan, Vietnam, Peru and Greece.
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2 countries that are not part of the top 50 countries are included in VT: Qatar and New Zealand.
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The weighted expense ratio of the portfolio would be 0.42%. Using the same ETFs but with the VT weighting would give an expense ratio of 0.26%
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VT has 92.40% of it's portfolio in developed countries markets and 7.30% in emerging markets. On the other hand this porfolio would invest 65.01% of it's capital in developed countries and 34.99% in emerging markets.
I know this is a very flawed portfolio, I made it in a rush and sloppy way. A lot of the ETF are garbage. Just wanted to see how the portfolio would look like. I think the best way to have something similar would be to invest 65% in a developed countries index and 35% in an emerging countries index.
Any thoughts?
Submitted May 12, 2017 at 12:37PM by GAV17 http://ift.tt/2qACVd4
