90% turnover in an Ex-US equity index fund?

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Joined: Mon Feb 04, 2019 1:18 am

90% turnover in an Ex-US equity index fund?

Post by westcoastnerd » Sun Apr 14, 2019 9:46 pm

I'm looking to better-diversify my international exposure.

My ex-US is currently only in SCHF (Schwab International Equity ETF) which doesn't include small/mid cap, or emerging markets. I'd like to get something closer to market-weight amongst countries and market capitalizations, using as few funds as possible.

My 401(k) includes "State Street Global All Cap Equity Ex-U.S. Index Non-Lending Series Fund Class K":
https://nb.fidelity.com/public/workplac ... anId=86694

- It tracks the "MSCI ACWI ex- USA IMI Index" which I think has the broad exposure I'm after
- net ER of 0.084%
- portfolio net assets: $64B
- share class net assets: $21B
- turnover rate as of 12/31/2018: 90.82%

I'm not sure what to make of the turnover, as I'm accustomed to seeing single-digit percentages there. Would this fund be an appropriate way to get international exposure?

Posts: 71
Joined: Tue Feb 12, 2019 9:41 am

Re: 90% turnover in an Ex-US equity index fund?

Post by fwellimort » Sun Apr 14, 2019 11:22 pm

I think turnover only matters in non tax-advantaged accounts.
Turnovers are an issue due to tax triggers. In a 401(k), that doesn't happen.
And the turnover is probably high because people as an aggregate sum are like sheeps. They join when the market is high. They leave when the market is low.

Personally, I take it more of as a "it's a great time to invest in the Ex-US". Buy low sell high. :sharebeer
Anyways, don't worry much.

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