ASX Financials & Mining Sector Concentration...But what about others?

Discussion in 'Sharemarket News & Market Analysis' started by oracle, 25th Nov, 2017.

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  1. oracle

    oracle Well-Known Member

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    Canberra
    Had this question in my mind for some time so decided to finally do some quick research on what sector concentration looks like in other developed nations.

    Let's first start with ASX.

    Below sector allocations

    1) ASX 300 index: Vanguard VAS ETF fact sheet. Link here
    Screen Shot 2017-11-25 at 12.03.40 am.png

    At 36% financials doesn't look very diversified. Let's see what Hong Kong - The Heng Seng index sector allocation looks like.

    2) Heng Seng Index: You can find more details about this index here

    Screen Shot 2017-11-25 at 12.08.56 am.png




    At 48% financials with another 10% in properties and construction this index is not much diversified at all. The information technology sector at 12.30% consists of 1 company Tencent which is around 10.75%.

    Let's move to Canada.

    3) Vanguard FTSE Canada All Cap Index ETF (VCN.TO): Link here

    Screen Shot 2017-11-25 at 12.16.49 am.png


    Financial sector at 38.5% doesn't look any better than ASX.

    Finally, we move to UK index

    4) FTSE 100 ETF (VUKE) : Link here
    Screen Shot 2017-11-25 at 12.20.53 am.png

    This one seemed to be bit more diversified compared to the other indexes. But technology sector seemed to be very small so plenty of room to grow.

    I have purposely excluded US as we know it is a very well diversified index. But just for completion and to compare with other nations below is the US Total Stock Market sector weightage.

    Screen Shot 2017-11-25 at 12.28.54 am.png

    I wish to add similar information about other developed/developing nations as time permits but if anyone else is interested feel free to add it here for everyone to benefit.

    Cheers,
    Oracle.
     
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  2. Nodrog

    Nodrog Well-Known Member

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    Potential diversification from investing overseas across multiple markets is nice to have but really my main reason for doing so is to reduce home country risk be it political, economic, market, popularism or whatever. That’s much more important to me than concentration / diversification concerns.
     
  3. oracle

    oracle Well-Known Member

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    Canberra
    Update after 2 years

    Drum roll. Financials reduced from 38.5% to 31%. Healthcare going from 6th largest to 3rd largest.

    A56DFE5D-B54A-4BFD-873C-8346941066D0.jpeg

    Cheers
    Oracle
     
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  4. Big A

    Big A Well-Known Member

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    Australia
    Much more diversified now. No longer need to go outside of Aus equities anymore. :D
     
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