How do you measure % of international holdings?

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chambers136
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How do you measure % of international holdings?

Post by chambers136 » Mon Aug 20, 2018 1:07 pm

When people recommend/report their percentage of of a holding (let's say international equities), is it generally as a percentage of the total portfolio or as a percentage of all equities?

Lets say you have a 40% domestic stock/20% international stock/40% bond portfolio mix.

If you were asked what percentage of international stocks you have, would it be 20% or 33% (20/(20+40))?

HEDGEFUNDIE
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Re: How do you measure % of international holdings?

Post by HEDGEFUNDIE » Mon Aug 20, 2018 1:14 pm

It should be % of equities. People’s asset allocations between bonds and equities should have nothing to do with how much (or whether) they hold international equities.

magicrat
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Re: How do you measure % of international holdings?

Post by magicrat » Mon Aug 20, 2018 1:15 pm

A percentage of equities, generally.

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JoMoney
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Re: How do you measure % of international holdings?

Post by JoMoney » Mon Aug 20, 2018 1:16 pm

My allocation is zero, so it's the same regardless.
I believe most people measure it such that the total of the portfolio = 100%
...UNLESS they specifically mention "of their equity allocation"
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HornedToad
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Re: How do you measure % of international holdings?

Post by HornedToad » Mon Aug 20, 2018 1:26 pm

Percent of equities makes more sense.

If I have 60% equities, 30% bonds and 10% real estate saying 40% international means more in relation to the domestic/international split than trying to say i have 40%*60% international equities... IMO

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abuss368
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Re: How do you measure % of international holdings?

Post by abuss368 » Mon Aug 20, 2018 3:19 pm

I typically see it as a percentage of equity. Likewise I see international bonds as a percentage of fixed income. As such, many posters state it is a percentage of equities or bonds.
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oldzey
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Re: How do you measure % of international holdings?

Post by oldzey » Mon Aug 20, 2018 3:30 pm

JoMoney wrote:
Mon Aug 20, 2018 1:16 pm
My allocation is zero, so it's the same regardless.
I believe most people measure it such that the total of the portfolio = 100%
...UNLESS they specifically mention "of their equity allocation"
Same here - 0% International.

Keeps it simple.

I agree that most of the time, the % measured refers to the % of your overall portfolio.

Here's an example: https://www.morningstar.com/videos/3556 ... rseas.html
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Engineer250
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Re: How do you measure % of international holdings?

Post by Engineer250 » Mon Aug 20, 2018 4:20 pm

JoMoney wrote:
Mon Aug 20, 2018 1:16 pm
My allocation is zero, so it's the same regardless.
I believe most people measure it such that the total of the portfolio = 100%
...UNLESS they specifically mention "of their equity allocation"
Well my bond allocation is 0. So my international is the same percentage either way as well, 50% :sharebeer
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jhfenton
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Re: How do you measure % of international holdings?

Post by jhfenton » Mon Aug 20, 2018 5:55 pm

I disagree with the zero international folks. I believe most folks naturally refer to their international allocation as a percentage of equities. Sure, if you're listing out all the elements of a portfolio, the percentages will be overall percentages. But if someone says I'm 50%, 40%, or 25% international, it's a good bet that is a percentage of equities.

I'm 50% international. Make of that what you will.

bgf
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Re: How do you measure % of international holdings?

Post by bgf » Mon Aug 20, 2018 6:02 pm

jhfenton wrote:
Mon Aug 20, 2018 5:55 pm
I disagree with the zero international folks. I believe most folks naturally refer to their international allocation as a percentage of equities. Sure, if you're listing out all the elements of a portfolio, the percentages will be overall percentages. But if someone says I'm 50%, 40%, or 25% international, it's a good bet that is a percentage of equities.

I'm 50% international. Make of that what you will.
agreed. international is 40% of equity, not entire portfolio. doesnt make sense to do it including bonds as they have nothing to do with the US - Int'l split and just makes the percentages wonky.

Eg. If 70% Equity and 30% Bonds, I'm still going to say I'm 40% International Equity.
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chambers136
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Re: How do you measure % of international holdings?

Post by chambers136 » Tue Aug 21, 2018 5:52 am

Thanks for all the responses....seems to be clear that it's expressed as a percentage of equities.

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