Yeah that’s basically why, it also has some extra US ones because it doesn’t have the same criteria as the S&P500 that excludes some companies.
I basically wanted to build up global coverage without missing too much so that’s why I picked it, if you are focused on the US then that doesn’t really matter so much.
Thanks a lot,you really know your stuff😁im torn at the moment in terms of vusa and iusa,also trying to diversify,which other etf markets would you go for?vanguard developed europe seems a good option, any thoughts on this?or other etfs?(i know this isnt financial advice and will always do my own research)thanks pal.
I’d just say unless you have a strong reason to favour one country then the world (or developed world if you want to avoid emerging markets) is going to give you the most diversification.
Countries/regions can have extended downturns (e.g. Japan) which are much rarer for the world as a whole, so I try to be as diversified as possible.
I maintain an overallocation to Emerging Markets (as well as Value, Small Cap) but I thought Ben Felix’s latest video does a good job at pointing out some of the risks and reasons why this may not be desirable@
Not sure an article that’s 8 years old is a good argument for or against ETFs. So many things have changed in the meantime. Also, I’ve read zero to one and don’t remember it covering ETFs at all, the author is stretching here.
Good video with great information and data! I am also overweight EM (initially too aggressive when I started investing) and it’s definitely been a rocky time. The currency dynamic could be an interesting factor, will the CNY reach reserve currency status?
I recommend using JustETF to browse, you can filter by exchange, geography, distribution type, index, strategy - basically whatever you want and then sort by TER.
You could look at Amundi Prime Global (PRIW) I think that’s the only global one cheaper then Vanguard on Freetrade, I’m not familiar with it though.
For S&P there’s Invesco SPXP at 5 bp vs Vanguard 7bp
There was some discussion earlier about sector/thematic ETFs - something which I was generally unfavourable towards but despite my best judgement did buy some Clean Energy to my disappointment.
Anyway Ben Felix just made a good video summarising the literature on why these are generally a bad idea in case anyone is interested in the argument against.
As someone new to investing a few years ago I would definitely say I fell for the media noise around the themes. I even chased returns to my shame but it was a lesson I needed to learn and I thank myself that it was a relatively small allocation.
I think there are genuine themes out there which you can make investment decisions based on but using an ETF or Fund over the long term probably won’t work out well for many of the reasons outlined in the video.
Have you sold the Clean Energy ETF and re-invested in one of your geographic ETFs (forming a composite global ETF)? Or holding on to it on the basis that one day it might come good again?