I’m fairly new to investing (2019) and before I threw my money in places I didn’t understand I decided to read some books, including Smarter Investing by Tim Hale. He made the known argument that passive almost always beats active in the long-term.
You may not agree — but in any case, I was convinced, and ever since I have been primarily putting some cash away in S&P 500 and FTSE 100, while dabbling in active stocks like Apple as part of a “whiskey and water” approach, as mentioned in the above mentioned book.
I’ve noticed that my Time Weighted Return as reported by Freetrade puts me very far below the returns of the FTSE All-World ETF. (My +10% to it’s +20%) It has made me consider moving to All-World over the long term.
I presume with the pandemic this is somewhat skewed or effected by Brexit and the British/American governments’ pandemic response.
I’m still not very well versed, but I’m presuming with All-World — while there is more diversity — there is also more currency risk.
In your opinion, are there many positives to sticking with less worldwide index funds? I have and will keep doing my own research on this, but would love to hear some opinions.