Reddit Posts
Please can someone here review my 401k selections.
Public service announcement: VXUS is outperforming VTI so far this year
Go Ahead and Ignore It if You'd Like....US Markets are Losing Their Outperformance
why do banks offer loans instead of investing themselves?
How to find similar index funds to consolidate in my account?
Is there a difference between international ETFs like VXUS and emerging markets ETFs like ACWI? Is one way more risky or is the term “emerging markets” just another way to say international?
Leveraged Smart-Beta - When is it Flair-Worthy? (Up +$385K, 97% Return)
Worldwide ETF portfolio to avoid excessive exposure to US stocks (especially GAFAM+T)?
Mentions
I did the math and that's unfortunately not true. If you factor in reinvesting dividends, you end up with a CAGR of 1.60% during that time period. In other words, $10,000 invested in S&P 500 at the start of 2000 would get you to $12,287 by the end of 2012. What's damning though is that that CAGR underperformed inflation - factoring that in, you'd have an effective end amount of $9,007. International diversification would not have saved you then either - MSCI ACWI would have returned a similar amount (1.87% or $12,727).
I very explicitly stated as much in my reply, while also refuting the person I was replying to, who explicitly said that Burry has beaten the overall market every year, which is extremely wrong, because almost anyone would interpret the overall market to mean the S&P 500 or MSCI World/MSCI ACWI, all of which Burry has lagged. Thank you for lacking the most basic of reading comprehension, and contributing nothing to this conversation.
Clever head on to invest, but he should take the time to learn investing himself. Why does he want to invest it? Short term or long term aspirations? Long term? Pick a world tracker etf (ACWI is competitive) or fund (HSBC All World Index Fund), deposit the cash and forget about it. He'll hopefully thank himself in the future when he comes back to it.
FTSE All World or all country is best bet for that amount. T212 is good as no fees. Invesco FTSE All World is a good one. ACWI slightly cheaper but all country rather than all world. I prefer invesco personally and for your £300 the fee difference is nothing.
The S&P 500 in GBP £ is up 9%, the Nasdaq 100 12% and an All world ACWI fund over 13% the FTSE 100 20% The dollar decline has hurt returns in GBP It's actually paid to be diversified such as ACWI
Correcting for devaluation of the dollar, MSCI ACWI ex USA is where it was in Q3 2021.
If 80k is your 6-month salary, you'll be fine. You just paid the stupid tax. Now go put your invesment into diversified index fund like VTI, ACWI, INDY, FXI, TLT/BIL, GLD and IBIT.
What exactly did you put your money into? If you invested in S&P500 or some ACWI index, just chill out, you'll be fine in the end.
You're going to be saying the same thing about the spy in 15 years, while ex us grows >International stocks outperformed US stocks during several extended periods: the late 1970s, the mid to late 1980s, and most notably from 2002 through 2007. >The 2001-2010 period was particularly strong for international markets, with the MSCI ACWI ex-US index delivering a cumulative return of 71.5% compared to just 15% for the S&P 500.
I reccomand you to invest 70% of your savings in well-diversified etf like VOO, ACWI, URTH. And you can decide where to invest the rest of savings. It could be bonds, commodities and crypto. Doing so, you can generate more return
Chat disagrees Short answer: the S&P 500 has outperformed the rest of the world over the last 5 years. • S&P 500 (IVV) 5-yr average annual total return: ~16.6% (USD, dividends reinvested, to Aug 31, 2025).  • Rest of world (ACWI ex-U.S., ACWX) 5-yr average annual total return: ~10.1% (USD, dividends reinvested, to Aug 31, 2025).  • Cumulatively, that’s roughly ~111% for the S&P 500 vs ~62% for ACWI ex-U.S. over 5 years. 
No worries at all, I've been nerding it up on this stuff a while now. With the world index you need to check if they are equal weighted or not, if they aren't then you will have heavy exposure to the Mag7, some of which you will already own etc. Looking at MSIC World ACWI its 62.54% weighted to the US. If you are worried about too much exposure to USA then you can go equal weighted on a fund instead which will be less heavily invested in USA.
Yes. YTD the MSCI ACWI ex US is up 25% to the S&P’s 14%. The MSCI EM index is up 27% YYD after the recent china tech rally.
Yeah, it's tough to say, most of the emerging market countries (China, Taiwan, India, South Korea) which make up the vast majority of most EM funds are already captured in most international indices anyways, so to me it's like weighting your portfolio for potentially more risk. The current return on investment since 2000 has been abysmal compared to World/ACWI but as you said, that might change. I guess the attractive thing is that EMs trade at a lower P/E, higher yield, and aren't correlated as much with domestic funds? https://www.msci.com/www/fact-sheet/msci-emerging-markets-index/07149641
I have some emerging marktets in a ACWI etf I own. At some point i stopped investing into that particular one and started investing in msci world, which only includes developed world, instead. I don't like emerging markets. I find them to be unreliable and I don't see it as beneficial to my portfolio. If you think emerging markets will outperform, I think you can safely invest into them through an ETF.
Looking at the ETFs that use the indices, and for the first dividend fund .. LCOW Is pretty new snd at a glance, invests in 100 of the S&P 100 for free cash flow + dividend history. Its top holdings are some of the regular S&P index top stocks, but arranged via the FCF/dividend screen so Broadcom is its top holding (as of this post).. If you’re good with expense vs dividend it’ll pretty much follow the tech sector for awhile. Global quality has been around and, in iShares versions of “quality” funds, a couple of the top 10 US stocks get the boot as they don’t pass sales/accounting, plus other screens. That said, you have to be good with watching those deleted stocks go up anyways. Looking at a non-US UTICs/ETF iShares version, it’s the top 300+ screened stocks in the world at 0.25% ER (vs their ACWI product at 0.32% with their 1000+ biggest stocks). My theory is there are indeed “stinker” companies out there, .. but I pare them out anyways during annual rebalancing with bonds>>gold stocks.
> 33% of the S&P index is mag 7 s 20% of the world index. You might argue that that's not much better, but the world index should be your comparator. You wouldn't sell your Amazon and invest the money in the S&P 500 (if you had any sense of caution), you would sell it and invest in the MSCI ACWI.
iShares Core MSCI World UCITS ETF is already diversified, you don't need to diversify into more ETFs and it doesn't get you anything. It already contains the entire S&P500 at market weight. Buying a S&P500 ETF on top actually reduces your diversification as it's a tilt to US large cap. This isn't necessarily wrong, you just need to understand it isn't diversifying you. ETFs hold hundreds or thousands of companies. S&P500 ETF holds 500 US large cap companies. iShares Core MSCI World holds 1,323 companies, *including* those 500- plus more. So you have all of the S&P500 already in that ETF, and if you buy more you have what's called "overlap" which is concentrating your holding in US large cap. If you wanted to diversify, while still in equities, you would be better off adding an emerging markets ETF like [iShares Core MSCI Emerging Markets IMI UCITS ETF](https://www.justetf.com/en/etf-profile.html?isin=IE00BKM4GZ66) (at market weight- so no more than 10%) as that specific iShares ETF is developed markets only. This gives you an additional 3,044 companies that *aren't* already in the developed markets ETF. Alternately, and it would be my preference, you could buy an "All World" ETF like [Vanguard FTSE All-World UCITS ETF](https://www.justetf.com/en/etf-profile.html?isin=IE00BK5BQT80) (3,592 holdings) or [iShares MSCI ACWI UCITS ETF](https://www.justetf.com/en/etf-profile.html?isin=IE00B6R52259) (2,318 holdings). Note all of these are 100% equity and that's risky. Much less risky than holding single stocks, but you could have as much as a 40-50% drop easy in a crash, so you need to be prepared for that and accept it could happen. Diversification beyond equities would involve bond funds but I don't feel you really need this at age 30, particularly not if you also have two properties and the equity portion of your overall net worth is only 30-40%. On average, over the long run, equities have better performance. But you really need ask do you accept a possible drop of 40-50%. Accepting that *risk* is what gets you the long-term average returns of 7-10%, rather than the 2% you are getting now (with capital 100% protected).
Great questions. For long-term diversification, I'd lean towards the global ETF (ACWI or VEA) over gold. Gold doesn't generate returns like equities and is more of a volatility hedge. A world index gives you broader exposure and potential growth. As for timing, trying to time the market is usually a losing strategy. If you're truly planning a 10-year hold, dollar-cost averaging now might be smarter than waiting for a perfect pullback. Your QQQ is tech-heavy, so a global ETF would provide nice sector and geographic balance. Personally, I'd do 10-20% in ACWI and keep the rest in QQQ.
Vanguard’s VEA is actually “international” which is defined as “non-US”, while IShares ACWI is truly global large-mid cap (at 0.32% ER). Vanguard has their all-cap global etf VT at 0.06%, while State Street has a less popular all-cap global SPGM at 0.09% that’s more concentrated than VT but usually has better returns (price and dividend). I’d love ACWI at a VT expense ratio, but one reason it’s more expensive reportedly is it tracks its index better = attracts traders. Now iShares URTH is global developed, so it will invest in an index with the US, Europe, Japan and other long term capitalists countries, but leave off China, India, and smaller recent capitalistic coin. It does have some stocks that support the emerging mkts but are domiciled in the U.S. ~ less than 1% last I checked. Vanguard’s VEA is all caps developed ex-US with a cheap er but their VEU is all world ex-US large-middle cap with still some small-cap stocks. Another possibility if wanting to leave off China, India, etc.. but keeping South Korea is Schwab’s SCHF at just a tad more er for a large to mid-cap etf. There’s VXUS or IXUS with more small caps, but personally having only 100 mostly U.S. stocks in QQQ vs 3,400 to 4,400 in IXUS or VXUS kind of seems unbalanced to me (but YMMV). Also Fidelity offers an all-cap version of QQQ with the symbol ONEC.
Honestly, putting 100% in QQQ is super concentrated, so thinking about adding diversification makes sense. If you’re planning to hold for a decade, I’d personally lean toward adding a global ETF like URTH or ACWI, it gives you exposure to markets outside the U.S. and different sectors that might outperform at different times. Gold (like GLD or IAU) is more of a hedge; it won’t grow much, but it can reduce volatility and help during market stress. You don’t have to go all-in at once, maybe start with 5-10% into the global ETF and see how it feels. That way you’re not trying to time a perfect pullback but still start building balance into your portfolio
The US is 60+% of the total by market cap. VT is 63.4% US. https://investor.vanguard.com/investment-products/etfs/profile/vt MSCI ACWI is 64.6% US. https://www.msci.com/documents/10199/8d97d244-4685-4200-a24c-3e2942e3adeb
>The reason for this choice was to have some apples in the big companies more classic basket and the rest on small opportunities around the world I see two issues here. First, your "classic basket" is not very representative of the world economy or indeed the US economy. It's a bet on a handful of big tech companies. This has been a great bet in recent years and maybe it will continue to be a great bet. But what if it isn't? Your investments in that basket are highly concentrated with very little diversification. Second, I'm not convinced that the average small cap deserves to be called an "opportunity". There are three types of small caps. Those that always stay small (or go bust) because they are lame. Those that have fallen out of the mid cap category because they are in decline. And those that quickly outgrow the small cap index to become mid caps or even large caps. It's that last group of stocks that you want to own. But what do you do? You sell them. You sell them exactly when they are successful and outgrow the small cap index. And because you don't own any mid caps in your portfolio, you completely miss out on exactly this group of companies that you really wanted to own. That's why I think the broad ACWI IMI (IE00B3YLTY66) that contains small, mid and large caps makes more sense if you want to own small caps at all. My personal opinion is that the small cap category contains too much crap, in some cases bordering on the dodgy. I don't want to own small caps at all, which is why I'm putting the globally diversified part of my portfolio into the regular ACWI (IE00B44Z5B48) that doesn't contain small caps.
Pull the index data and calculate yourself. EAFE growth goes back to 1974, ACWI ex US growth to 1996.
ACWI already includes everything in the nasdaq 100, as well as emerging markets. We don't know what am optimal balance is, but if you go with the market weighting approach, you're overweighting those two categories and could simply eliminate those funds.
Hey, can you take a look at my portfolio and tell me if it looks too complicated / unbalanced? Current ETF allocation: * Core MSCI EM IMI – 12% * Physical Gold – 5% * Nasdaq 100 – 32% * MSCI ACWI – 51% I’m a bit worried about being too heavy on Nasdaq (AI bubble fears). I’m thinking of cutting it down from 32% to around 20%, but I’m not sure where to put the extra. Should I increase MSCI EM IMI or just add more to ACWI? Or should i cut it down even lower ? Any advices? What would you do?
> ACWI Probably the returns large cap has given, while it takes a lot for a small cap in VT (with over 9000 stocks) to register its gains. SPGM has outperformed VT as well in the past 10 years by almost 1%, with only a modest increase in ER, with less overall stocks (SPGM is a little more “concentrated” to the developed large caps). Was looking at it last night and ACWI may track a little better which is good for trading,
I hold ACWI which tracks a diffeent index but it’s very similar -‘what’s your thoughts on it?
Mango made Spy moon while ACWI remains flat. That is some 4D market chess
-Global (Blackrock MSCI ACWI IMI Index Non-Lendable Collective Investment Trust; Class F shares): 0.06% -International: 0.08% -Small cap: 0.03% -Large cap: 0.02% -Market Money Funds: 0.08% There’s also a portfolio which included Gobal equity 75% allocation, Real return fund 15% and US intermediate bond index fund 10% for a 0.06 expense ratio These are basically it. Also, it looks like I can split my allocations between Roth and Traditional.
Global (Blackrock MSCI ACWI IMI Index Non-Lendable Collective Investment Trust; Class F shares): 0.06% International: 0.08% Small cap: 0.03% Large cap: 0.02% Market Money Funds: 0.08% There’s also a portfolio which included Gobal equity 75% allocation, Real return fund 15% and US intermediate bond index fund 10% for a 0.06 expense ratio
Global (Blackrock MSCI ACWI IMI Index Non-Lendable Collective Investment Trust; Class F shares): 0.06% International: 0.08% Small cap: 0.03% Large cap: 0.02% Market Money Funds: 0.08% There’s also a portfolio which included Gobal equity 75% allocation, Real return fund 15% and US intermediate bond index fund 10% for a 0.06 expense ratio
You can invest in stocks anywhere in the world, therefore your benchmark is a world or all world index. MSCI World or ACWI; FTSE Developed World or All World. If you buy a tracker of one these indexes then you are guaranteed to meet your benchmark - you're getting the world average, with no effect, which is better than about 8/10 or 9/10 of people who pick their individual stocks. When you pick individual stocks, you're saying that you're smarter than everyone else - you're smarter than the collective intelligence of the world's professional investors, who buy the stocks that move markets and define the returns of the index. You're on here asking a bunch of randoms "what should I invest in?" If it was that easy to beat the average, don't you think everyone would be doing it? How come the majority of professional active managers fail to beat this average, when accounting for costs and fees?^[1](https://archive.is/V6AyL),[2](http://www.marketwatch.com/story/90-of-fund-managers-beat-the-market-but-their-shareholders-dont-2015-01-21),[3](https://www.justetf.com/uk/news/passive-investing/the-proof-that-active-managers-cannot-beat-the-market.html) It's pointless doing this unless you believe that you can make more money than you would by investing in an index fund (if you expect to lose then that would mean you're actively choosing to piss money away), but what if you don't? What are yoiu going to do if your picks are bad, like [that guy who put his whole inheritance into Intel at $30 a share last year](https://www.reddit.com/r/wallstreetbets/comments/1ehjuzj/i_bought_700k_worth_of_intel_stock_today/)? Are you really going to hold onto a dog for 10 or 20 years? Do you have the fortitude to hold on and underperform everyone else, in the belief that your portfolio will beat the market in the end? NEST pensions: > It is possible for people to be risk seeking and also strongly loss averse. People may be comfortable in the abstract or under experimental research conditions with the notion of investment risk. When confronted with the reality of an investment losing value, they may have a negative reaction that could not be anticipated from their self-reported level of risk tolerance. The research found this to be the case most strongly among younger people. Young people self-report higher levels of risk appetite, research shows they may be the most loss averse in practice and most likely to take action if confronted with loss. > … > Findings from this suggest that the target group are often strongly loss averse. They displayed quite emotional responses to loss during the research: disappointment, anger, helplessness and often surprise and incredulity being typical. When participants’ hypothetical pension lost value, they wanted to know where the money had gone and who to blame for losing it. > Pension loss was also felt with a sense of immediacy and was not considered within the context of a long term savings vehicle. Participants talked about the loss as if it they had less in their current account or wallet than they expected to have, given what they had put in. It was commonly thought that pensions grew slowly but steadily in value, in line with their contributions and with a modest amount of gain. A loss was seen as an anomaly or a fault, particularly by those who were un-pensioned, as they did not understand the difference between pensions as a form of investment and savings accounts that accumulated with interest.^[PDF](https://web.archive.org/web/20170705214114/http://www.nestpensions.org.uk/schemeweb/NestWeb/includes/public/docs/member-research-brief,PDF.pdf)
MSCI ACWI, cant predict the market, buy the market
The best advice would probably be to go for rather diversified stocks etf…if you want some world exposure go for MSCI world (70% USA), if you also want to include emerging markets you can also go for MSCI ACWI (60% USA). If you want to just have USA - as others have mentioned just go for an S&P 500 ETF Also check TER (totals yearly costs) and personally I would recommend one with physical replication and not swap based. Also you can choose between accumulating and distributing. As you probably want your returns to compound, in your case an accumlating one makes sense. Most important: just start doing it! You are super early in your life and will be thankful later.
i keep my Nio stocks (luckily a minor amount invested) as a reminder to never stock pick and only index invest. Im happy with an annual return close to the average of MSCI ACWI.
Emerging markets (ACWI) carries a risk premium, supposedly.
How about ACWI World. almost the same as MSCI World but even more internationally diversified
SPY, ACWI, VEA, IBIT, ETHA and the glorious BRKB, not an ETF though.
MSCI All Country World Index, tracked by $ACWI ETF A really famous index consisting of both developed and emerging markets. Similar to the FTSE All world index, tracked by the $VT ETF Guys, you are on a stock subreddit...
Was looking at the US products (SPDR SPGM and iShares ACWI) and found a bit of better performance difference .. vs. Vanguard’s VT (which has many more “small to micro caps” than the other 2),.. though SPDR at a slightly higher ER and the iShares at a much higher ER. Probably a large cap premium plus DFA’s finding a lot of EM small cap just sit there. SPDR can use sampling here in the US, though not sure if that’s significant returns-wise.
So VT follows an all-world (DM + EM) all caps index eh? I reckon that’s what I’m doing DCAing into an ETF replicating the MSCI ACWI IMI index.
> can’t see it beating a Chinese/Indian .. AI/robotics No one knows for certain though India is likely prime for “growth”. Also consider that the U.S. has 62% to 66% of global market cap despite only 4% of the global population (80% if talking about the “‘mega-caps”). Market standards and the American worker kowtowing to Milton Friedman style capitalism [perhaps not that willingly but anyways..] do matter. One idea may be a “global” portfolio or even fund/ETF. Vanguard’s all-cap VT or for just large/mid caps .. iShares ACWI for a pure market cap play. There’s also dividing up VTI (US) and VSUX(non-US) …or ITOT and IXUS for iShares. Another interesting twist would be Vanguard’s new environmental/social all-cap funds .. ESGV (US) and VSGX (non-US); “feel good” stuff especially if there’s an eco-disaster in the future, .. plus DFA research noted some sectors, like emerging small cap value, have large stocks that just sit there; a firm going after environmental certifications the company may be more proactive in all aspects imho.
I‘d argue for an all country ETF based on MSCI ACWI or FTSE all world. And maybe have a look at a renewable energy ETF. Although being „the future of power supply“ their performence is absolute garbage. Maybe this can cure robotics/AI fomo.
You can replace your ACWI ETF with an ACWI IMI ETF instead to get all world all cap.
You're missing out on the whole rest of the world. If you want to diversify further you might prefer the FTSE All-World or the MSCI ACWI. Or a combination of the MSCI World and the MSCI Emerging Markets. Or other products. (Yes, I know that big companies listed in the S&P 500 do a lot of their business worldwide).
This is a 5m old post but thanks! I am already almost 100% invested in MSCI ACWI, for me was the best answer to have mental peace and be diversified
This is heavily concentrated imo. VTI or ACWI at the very least, even if you're young. Look to gain some small/mid/all world exposure. Even than, beware being tech heavy.
I try to avoid complexity unless there is a significant benefit. I have seen many portfolios managed by financial advisors that are complex combinations of both growth and value funds, in addition to blended funds. When I do a backtest on them they end up being essentially the same return as a basic low expense ratio total market fund. [Portfolio Visializer](https://www.portfoliovisualizer.com/backtest-portfolio) is good for backtesting, although free accounts are now limited to 10 year maximum backtests. For the portion of my portfolio that are ETFs I just default to the old reliables of VTI/ITOT/SCHB (total US stock market) and IXUS/VXUS (total ex-US stocks). I use the multiple ETFs for total US and total ex-US for tax loss harvesting. In your Roth that is irrelevant, so the simplest and easiest and most effective thing to do is to simply figure out our US/ex-US allocation and buy VTI and VXUS, at both brokers. VXUS tracks FTSE Global All Cap ex US Index, with 0.05% expense ratio with a fairly large tracking error of 1.78%. It is also available as the mutual fund VTIAX at the slightly 0.09% expense ratio. IXUS has 0.07% ratio and tracks MSCI ACWI ex USA IMI with 1.59% tracking error. The overall returns of the two ETFs are essentially identical. Your 20% allocation to international is very reasonable. Although market cap weighting of international is higher, due to the extra volatility from exchange rate variations, the minimum volatility (in USD) is in the low 30% range of ex-US. I choose to apply a mild home bias and chose overall 80/20 US/ex-US. Because the individual stock portion of my portfolio (old, low cost basis shares in taxable accounts) are predominantly US, my ETFs are about 60/40 US/international.
A global index fund that covers both developed and emerging markets (e.g. ACWI or FTSE All-World) will likely outperform gold over time. That said, if your heart is set on gold, the St. George is a good choice due to the capital gain tax exemption.
Going 50/50 into exactly two *single* investments is an incredibly plan. You should *strongly consider* buying at least one broad market fund. Something with at least hundreds of stocks in it, if not thousands, will provide you with a ‘core’ position. It doesn’t have to be 80% or even 50%. I personally wouldn’t consider going lower than 50% but maybe 33% will work. If it’s only one it should be worldly. Think: SPGM, VT, ACWI, AVGE, URTH, etc. even IOO would be better than only two equities.
You’re going to go broke dummy. Correlation is high because SPX is catching up to ACWI-ex US. Fuck your puts
I see your point, and thanks for sharing your opinion few days ago i had basically the same question if i should go for a MSCI world + EM one or a FTSE World/ MSCI ACWI instead in the end i choose the 2 in 1 option due to lower costs Maybe in the future i might change it so i have the flexibility of allocation
I agree with other posters. If you're going to invest in the US + Europe you might as well simplify and just buy an MSCI ACWI or MSCI World instead of holding multiple ETFs. That automatically contains all (developed) markets. FTSE All World or Prime All Country World are comparable options also
I made my US part of my portfolio smaller because I hate “Mango volatility”. I sold Msci world and bought emerging market and India. I dont know it was a good decision, I know that you should DCA 40 years long the same etfs but I want less USA. I left some Msci ACWI with 60 % USA. Maybe I will sell that later too if Mango does more stupid things and put it in Msci India.
Yes, I understood about the rates, but I didn't understand your strategy as a whole and the purpose of the box spread and its usefulness in general. Let me summarize (in the case of 100k$ PM account): 1- Buy about $100 k of smart-beta ETFs (Value / Quality / Momentum + ACWI) 2- Sell an **SPX box spread** (4 legs, same strike & expiry) to receive **N $** **3-** Use the N $ received to buy the same ETFs (Push total exposure to \~2–3× at low cost). 4- Check *Excess Liquidity* (Equity − Maintenance) daily to avoid margin calls My question is: do you use box spread for other strategies or just to buy smart beta ?
I think it's very likely that globally dominant US tech companies will continue to dominate. Network effects will make sure of it. The question is how much of that is already priced in and whether countries around the world will target these companies to retaliate against Trump's policies. Personally, I'm hedging my bets. Too much is changing in the US right now to put everything in that basket even if it's likely to outperform. The SPDR ACWI ETF has 62% US stocks and 38% from the rest of the world. The weighting gets adjusted automatically if fortunes shift. To me this seems like the safest way to own stocks unless and until you have formed your own opinions on more specific investment opportunities. To avoid disappointment I think you shouldn't expect too much from stocks in the coming years. It's highly unlikely that the incredible run they had over the past 15 years can be repeated. It's a historical anomaly.
Yes, That’s a good one relative to international category, which isn’t my cup of tea. ACWI is also better than VXUS.
>I saw that the safest place for it to be would be an isa since it's low risk You can choose between two types of ISA: (a) The cash ISA is just a tax free savings account. Your risk is that the interest paid is less than inflation so your savings could lose value (purchasing power) over time. Right now, I would not put my money in a savings account or cash ISA that pays less than 4% interest. (b) The stocks and shares ISA is a tax free investment account. You can buy stocks, bonds, money market funds or ETFs inside a stocks and shares ISA. The risk you're taking depends entirely on the investments you make. Many stocks and shares ISAs pay interest on uninvested cash (e.g Trading212 pays 4.35%). So what you could do is put your savings in a stocks and shares ISA that pays enough interest on uninvested cash and wait for the right time to buy stocks (maybe when the next crash comes along). If you're asking whether now is the right time to buy stocks then I don't really have a good answer for you. Stocks (US stocks in particular) have gone up a lot in the last 15 years and are now rather expensive. The world is highly unpredictable right now. So if you have no tolerance for losses then it may not be the best time to buy stocks. My own assets are currently 50% stocks and 50% money market funds. I used to hold almost all of it in stocks until the end of last year. If you don't need your money in the next 10 years or so then it doesn't really matter. You could just put everything in an index ETF and sit out any downturns. Statistically speaking this is a pretty good investment strategy over the long run. Or you could put half of it in an index ETF now and wait for the next crash to invest the other half. But if you're saving for a deposit or if you may need the money in emergencies then it's probably better to look for the highest interest cash ISA or buy a money market fund in a stocks and shares ISA (Ideally inside a flexible ISA where you can temporarily take money out without losing your ISA allowance) If you open a stocks and shares ISA and you plan to buy shares in foreign currencies, pay attention to the broker's forex fees. They are often egregious and far higher than the actual trading fees. If you buy ETFs, choose the ones that trade in GBP rather than USD. Here are some stock index ETFs if that's what you decide to buy: SPDR ACWI is a broad based ETF covering the whole world including developing and emerging markets. The annual fee is 0.12%: [https://www.justetf.com/uk/etf-profile.html?isin=IE00B44Z5B48](https://www.justetf.com/uk/etf-profile.html?isin=IE00B44Z5B48) SPDR SPXL is an S&P 500 ETF if you believe that the US will continue to outperform the rest of the world. The annual fee is 0.03%: [https://www.justetf.com/uk/etf-profile.html?isin=IE000XZSV718](https://www.justetf.com/uk/etf-profile.html?isin=IE000XZSV718) Both trade in GBP.
Thats what I use. ACWI is another with more US exposure.
Seriously ACWI prison ETF up 10% last month. As ICE ramps up it'll only grow.
Real talk: Next time divide your money into different portfolios: money you CAN'T loose into bonds, then majority just in some wide index (S&P 500/MSCI World or even ACWI), just a portion you can loose into options gambling... Sorry, but you probably aren't in this 2% that are above 0 trading options, especially 0DTE
My positions aren’t static and held in several different brokerages. The largest is the federal TSP I fund, which mirrors the MSCI ACWI IMI ex USA ex China ex Hong Kong Index. My main brokerage account is in Vanguard Developed Markets Index (VTMGX) and Vanguard Total International Bond (BNDX). Individual holdings are limited to BRK.B, GLD, SLV, and some AAPL that I’d owe huge cap gains on if I sold.
MSCI ACWI. Very low TER, good fund sizing. And please accumulation (unless you want to pay taxes over taxes). Second choice according to me is MSCI WORLD ETF, exactly like the First one but not including the emerging market (e.g. china)
MSCI ACWI. Very low TER, good fund sizing. And please accumulation (unless you want to pay taxes over taxes). Second choice according to me is MSCI WORLD ETF, exactly like the First one but not including the emerging market (e.g. china)
Don't worry, I still managed to get bear trapped with CFDs on the S&P500. MSCI ACWI IMI is an all-world high and mid cap index similar to the FTSE All-World, german finance bros in /r/Finanzen call it the holy grail since you come up on top even if chiner were to get ahead of mangoland economically
I own broad market ETFs where tesler makes up 0.9% even in the MSCI ACWI IMI; forgive me father, for I have sinned
It could. It also couldn’t. That’s why I primarily hold MSCI ACWI index funds. Yes, the US makes up some 60% at the minute, but it will adjust automatically over time. Now, my time horizon is about 20-25 years so it’s the best strategy in that window (I think). But fir my kids with a 50-60 year horizon, I but 50% MSCI ACWI, 25% Emerging and 25% India. I am absolutely positive that the US stock market will not make up 60% of the global market cap in 60 years.
Not terribly often; somewhere between “maybe once a decade” and “every few years”. Look at a “max” chart for any of the major indices. You should be investing in index-tracking ETFs before you mess with individual stocks. SPLG is the lowest-fee S&P 500 tracking ETF, an index containing the US’s 500 largest companies. I believe ACWI is the lowest-fee All-World ETF if you want to go that direction.
I am actually invested in ETF so probably this was the wrong subreddit. I invest in both MSCI ACWI and SnP500 (yes I know they overlap but wanted a full position in us markets) 80/20 aprox. I also evaluated going like 25% in rn and then dcaing the rest throughout the year. Would it be wiser to just DCA it all throughout the year rather than going 1/4 in now? This week seems to be full of potential economic news, shall I just wait? Apologies if my questions are not good, I am far from knowing in the matter, I also know market cannot be timed for what I could speculate something and then the opposite happens. I just want to know what the "wiser" move is, even if the ends up not being the best
Talk about putting all of one's eggs in one basket. I can imagine data centers and crypto mining centers moving into Iceland to exploit its cheap energy sources, but that country is not a closed economy. We live in a global economy, though that seems to be at risk because of one orange idiot. Nevertheless, if there is decoupling from the US (unlikely), then it is impossible to predict which country's public equities will do best. If you are unsure about where to put you savings, diversify as much as possible. One way to do that — while still gaining exposure to the deepest and most valuable markets (especially the US) — is to own an ETF linked to MSCI ACWI.
Thats why I invest mainly into the ACWI. If the World economy drops 90% and hasn't recovered after 17 years I probably have more serious issues then my ETFs and a few shares.
Even there it varies. My global “tech” index fund is 80% US but that includes Taiwan semiconductor which could be arguably “industrial”. ACWI, following the global large cap index is 63% US but a global “dividend growth - quality” fund is 60% US. A high dividend (global ) index is 40% US if I’m reading it right, .. before getting into preferred stock.
I only invest in the MSCI ACWI IMI index. So about 62% US and 38% rest of the world. I will stay the course no matter what happens.
Not exactly but moved from 100% S&P500 to 100% ACWI
Did you consider furthet diversifying into MSCI ACWI? That is all countries. Even there US is 65% and the magnificent 7 take 20%.
Wait. Converted all RRSP and TFSA to cash yesterday at noon. Never been one to try and time the markets but economic numbers for Q1 are going to be BAD as the government, regulatory, and social support backbone of the USA is being gutted. Currently all in CBIL. I will be buying back to a 50:50 probably starting at -10 to -20% and my 50% stocks will be iShares MSCI ACWI ex U.S. ETF | ACWX because even though staying out of the USA market will probably hurt my returns in the long term, I am in as much of a boycott the USA position for the last month as I can and especially going forward as they attack our sovereignty. 51st state? F-YOU Trump.
Perfection is the enemy of good. Go ahead and focus on the nitpicking. Samsung telephone. Bell Canada wireless service. Sold all retirement accounts and put in CBIL (Canadian t-bills) at 12:00 the 2024-03-03. That I KNOW is timing the market and is most likely a horrible decision in the long term. That said I think Q1 economic numbers are going to be a bloodbath with the uncertainty and spending contraction due to us fed job cuts, NIH cuts, USDA cuts, USAID cuts, DOE closure, etc, etc, etc. I am close to retirement so my plan will be a 50:50 stock:fixed income and stock choice will be iShares MSCI ACWI ex U.S. Yes, this will cause me pain and yes it is possible it is a poorer financial decision but that is evidence of the degree of the hate I have for the administration of the USA and the people who put them there and how I am doing everything in my power to avoid supporting them and to support my country and our allies. You are correct though that certain websites are the most difficult to divest but it is a work in progress. The post I responded to was someone dismissing the anger non-Americans are having and calling it gaslighting. I provided direct examples worth THOUSANDS of dollars of things I have cut from the USA and yet you focus on my phone (wrong), investments (wrong), internet (yeah NORTEL did a shitload of networking in the past too), and Reddit (true but I’m not paying and allows me to interact with Americans to explain the rage). So there you go. A Canadian doing all they reasonably can to pull away from the USA even if it decreases their own comfort and financial wellbeing. Sacrificing where and how I can in protest. Imagine, their are people in the world who are not selfish, egoist, greedy people who can look outside their own best interest. If there are many more like me the USA near century of being a world leader is on shaky ground.
I'm not gonna tell you what you should do. I'm just gonna tell you what I did. I sold s&p500 yesterday and immediately bought an ACWI etf instead. I kept some cash at hand (mainly profits that I made). Is this the way to make more money in the long run? No idea. It just makes me sleep better at night. And not because of ideological reasons but because of my diversification.
I have literally no crypto, alt, meme, shit or any other coins. Only NASDAQ, S&P500 and ACWI, with a solid cash reserve in bonds
Horizon 3-4 years, mostly invested in ACWI(50%) and S&P500/NASDAQ mix (20:30 ratio). I think i should be good, but it still stresses me out a bit
Even though the world feels extremely divided today (especially specifically today!), the world is connected in terms of business. Most of the companies in STOXX600 have a very large portion of their business in the US, and most of the SP500 countries have a large portion of their business in Europe and Asia. That doesn’t mean you can’t make a decision on who you want to support with your capital directly based on in which country the company/ies is/are registered. What I am arguing is just that in the big picture, all companies are in some form dependent on the general global economy and direction. That’s why I keep my MSCI ACWI-based index funds. But I have sold my individual US stocks to not overweight the already-largest region. And because they have a dick for president.
I may have found another international fund for you. Could be better than ACWI. Check out IOO.
Combining ACWI + VOO (international + domestic) looks a hell of a lot better than SWWFX. To go with a single fund, even the dog VT looks better than SWWFX.
You can get an ETF that replicates one of the world-diversified indices, like MSCI ACWI IMI or FTSE All-World. In general it is advisable to put the profits from your gambling plays into one of these. If you look at their performance, they've been slightly lagging the S&P 500, because the US economy has done exceptionally well over the last decade. US companies still make up almost 70% of these indices. If we see the shift that you're expecting, the ratio could very well drift lower. Differences in performance would still be expected to be marginal, but it's a better hedge against black swans in my opinion. What if that asteroid that hits Earth in a few years wipes out North America?
I’ve been backtesting cause I know nothing about international. Found ACWI, IMTM, BKF all outperformed VXUS for past few yeas. Which fund are you in?
Wait no, serious question and not just dogpiling on you. The world indexes were also up two weeks ago to date. Albeit 1%-ish but you should still be up. Could you seriously say what you bought? I’m just concerned you’re invested into the wrong index. Basically if your index is CSPX or MSCI World or ACWI, you should be up a tiny tiny bit but not in the red/
Great to see you starting early! For international exposure, consider broad-market ETFs like Vanguard FTSE All-World ex-US (VEU) or iShares MSCI ACWI ex U.S. ETF (ACWX). These offer a good mix of growth and stability by investing in global stocks outside the U.S. Since you're young and comfortable with risk, these funds can provide long-term growth potential while keeping things simple. Best of luck with your investing journey!
For young investors, the primary focus should be on growth. I recommend a core holding of at least 75% in a broad US stock market index like VTI (total market) or VOO (S&P 500). The remaining 25% can be allocated to a global stock ETF like ACWI (VXUS) and dividend-growth-focused ETFs like SCHD. A small portion, less than 5%, can be used for higher-risk, higher-reward investments if desired. While diversification is often touted as risk management, the historical performance of the S&P 500 over the past 70 years demonstrates its strong returns compared to other indexed ETFs. This can provide peace of mind for long-term investors.
* 80% equities, of which: * 40% MSCI ACWI Quality Factor Index * 40% MSCI All-World Momentum Factor Index * 10% MVIS US Listed Semiconductor 10% Capped ESG Index * 10% individual stock picks * 20% hedging, of which: * 50% Bitcoin * 25% gold * 25% Swiss corportate bonds (I'm Swiss)
It pretty much is through, it's just the statistics. We can go extreme and compare ACWI 2,376 to represent the entire world vs VT 8,000 they still have nearly identical performances. As long as you market weight, the top weightings is all that really matters because they take such a large percentage. If you were to take an equal weight approach then you would be correct.
I would get following: **Vanguard FTSE All-World** or **SPDR MSCI ACWI IMI** as a base since it includes everything. Then add **S&P500** and **STOXX 600** biases as you want. This has the advantage that you don't need to worry about percentages, the biases are arbitrary anyway. (Tbh I would not add any...)
Those services might often provide a false sense of security for a hefty premium. The wealth/asset managers always make money even if your assets depreciate in value. If they lose to an index then why not just move all equity to an ETF, no need to manage anything, eg. ACWI (All Countries World Index) ETF has a management fee of 0.2%, and S&P500 ETF has a management fee of 0.07%. How much does the wealth managers charge and how are they doing compared to these indices?
Why can't US passive indexes hold foreign stocks?. How about VT ,ACWI, VEA ?
How long is “anytime soon”? The US could still dominate in 10 to 15 years but by a smaller margin meaning upside for non-US stocks. US is about 65% of ACWI now, might shrink, in which case owning the other 35% now would be good diversification over the long term. As others said here, international beat US in 2000s and other periods in history.
Those two links didn’t link to anything. And so much has changed since 1970. Comparisons of performance for the last 16 years is more relevant. Overseas: VT: +147% ACWI +144% U.S. VTI +320% SPY +350% Corroboration: https://www.advisorperspectives.com/articles/2024/10/14/stock-performance-u-s-versus-international IWY: +863%