The detail rational and objectives of the Globalized SPY (GSPY) portfolio can be found at
The objective of this portfolio is to provide diversification from the S&P 500 (SPY) via a portfolio that provides better returns with less volatility and risk than using the very popular emerging market ETFs such as VWO (VWO) to provide portfolio diversification.
Basically, this portfolio is a mix of ETFs of the following countries:
- GSPY has lost -.2% while VWO is up 1% for the year.
- GSPY has been less volatile than VWO with a monthly SD of 2.6% vs. VWO's monthly SD of 3.6% and it seems to make common sense that these larger more established countries and companies shold be less risky than other emerging markets.
- GSPY and VWO have shown a high correlation of 94%
- GSPY underperformed the S&P 500s return of 5.5% YTD. The positive spin on this negative comparative result is that GSPY is showing a -.20 correlation with the S&P500. In reality this type of negative correlation is the objective of diversification. Hopefully this negative correlation will continue if/when the S&P500 has a down period.