I can‘t recall a time (except the lost decade) where underweighting US stocks resulted in better returns, quite the contrary. People kept underweighting their US holding since the financial crisis and look on how much they missed out.
The only thing we can learn from this is that nobody can predict which countries will perform good and which won‘t. So market cap weighting is probably the most sensible thing to do.
I don’t know for sure
But I think following works well for Swiss residents.
MSCI Europe ex CH + Swiss ETF
Swiss ETFs could be SPI , SLI or SMI based
For MSCI Europe ex CH -: I could only find one fund from UBS
Alternatively there are few ETFs for MSCI Europe which can be used from ishares, HSBC, Xtrackers or UBS. They will be slightly less tax efficient (due to tax loss of Swiss dividends) but depending on overall weight in portfolio might not make much difference
I started exactly 2 years ago to overweight Europe by buying VEUR on Swissquote from time to time and buying less of VT on IBKR. I must say honestly I don’t keep exact percentages of how much VEUR compared to VT I have but it is roughly 1/3 VEUR and 2/3 VT.
Just to add that anything between ~10%-50% domestic has the same result.
I am not sure though if this applies to small markets like Switzerland with the known “concentration issues”. In the respective RR video the author mentions that he run the simulations also without small countries and the results were the same. But this doesn’t say anything if you are actually leave in a small country.
Anyway, my take away is: 100% stocks. Mainly international.
He also mentioned that home bias should be reduced if you work in the industry which makes up a bigger part of the index. So someone working in pharma/industrials or finance should probably keep the home bias lower.
One could argue that this applies in general. If you work in tech, you shouldn‘t have 50% of your stocks in tech.
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