Rethinking global exposure in an overweight US market

The dominance of US holdings in many index-tracking funds is well-understood. Even after its recent wobbles, the US comprises more than 70% of the MSCI World index, double its level just 15 years ago. Many active funds have followed a similar pattern. If a global fund is benchmarked to the MSCI World, it has taken a brave manager to buck the trend, even if most active managers would argue that they are more thoughtful about that exposure. This natural crowding in US equities doesn't help an investor who is worried about US valuations, a sliding dollar, and the mounting risk of havin...