Wat only Nasdaq100? I am trying to make a serius discussion…
“I think EM will catch up” Are you suggesting we should make investment decision based on out guts? What makes you think EM will catch up? We hear these phrases for a long time now. And even if they catch up, what makes us sure that EM markets rise because of that and not companies listed in developed markets operating in EM?
What makes you think that the expected future gains from EM aren’t already priced in in the current price? If you go that way, you could ditch the whole exUS world. Europe is even worse than EM, but I still have some part of my portfolio in Europe.
Your chart is fancy, but how would it be for an investor starting in 1950 or 1985?
Maybe they are, but how is that an argument for buying EM stocks? I’m not saying I won’t invest in EM stocks, to be clear. Starting to invest in 1950 or 1985 in EM is just irrelevant according to your suggestion that historical data doesn’t matter for today and how had someone could have foreseen that?
Past performance is no indicator, but it is better than ignoring it in my opinion. What I wanted to say in the first place is that the term of diversification has probably changed over time. Nowadays we are told to have stocks from all over the world (including EM), wheras Benjamin Graham wrote in The Intelligent Investor (Chapter 5):
There should be adequate though not excessive diversification. This might mean a minimum of ten different issues and a maximum of about thirty.
as well as
The defensive investor who follows our suggestions will purchase only high-grade bonds plus a diversified list of leading common stocks.
Buying hundreds or even thousands of stocks via ETF is way more diversified (and probably safer) than Graham’s suggestion, but there is nothing about EM (in the suggestion for the defensive investor).
Hello, I want to do my Mustachian portfolio with the next distribution:
ETF VWRL IE00B3RBWM25 50% Degiro
Vanguard S&P 500 UCITS ETF IE00B3XXRP09 15% Degiro
Viac Global 80 & Suisse 100 (50%/50%) 10% Viac
Mirabaud Eqs Swiss LU0636969866 10%
European Small , MID Caps FR0010288308/ES0159202011 10%
Pictet China Index P (EUR) 5%
It was a legitimate question. Maybe you have good reasons. The Mirabaud fund is actively managed and charges a very high TER (1.8%). Does it indeed outperform the index after fees? If so, good for you.
The Pictet China though is fully passive and still expensive. There are better alternatives available.
I hope you are aware you already have China exposure with VWRL, as well as US exposure.
If you do go with VWRL and then add SP500 and EU small/mid caps then you are basically underweighting all Europe large caps, underweighting developed markets ex EU and USA as well as underweighting all emerging markets other than China. Is that your intention?
My best advice to you is to just go Global 80 or 100 at VIAC and VWRL via Degiro. Get rid of everything else.
What is the reasoning for wanting more EU? As mentioned before, try to get an idea of why you want to diverge from the global market cap before changing things.
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