Also check out the Baillie Gifford thread here for some info as they are strong performers if you’re looking for low maintenance.
this highlights one of the best things about ETF’s - the dud companies over time slowly get removed and replaced with winning companies, rather than with individual stocks where you have to think ‘when will I sell?’ you can hold the ETF forever as they are doing the selling and buying for you.
As I said I’m pretty fresh to etfs but right now they seem like a safe bet for me too, I’m only going to hold up to 25% in etfs as they gains look fairly gradual in comparison but a bit of stability is an added bonus.
I think it’s a good idea, I would say most people have a ‘core’ ETF structure (either a world one or a mix of some like OP has suggested) - then individual stocks on top of this
You have just described the ETFs I posted at the beginning but the bonds and commodities which is something I am planning to include as well.
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Yeah, lots of people don’t jump in because it is overprice. But if you plan for the long term price shouldn’t matter just apply DCA. Waiting for the crash it is a bad strategy IMO
agreed. re: your original post, I think once you get to say 8-10 ETFs you might as well buy a world index, but I think there is a case to limit the ETFs to say 4 maximum and try to beat the world one. I mean as an example if you look at EQQQ returns last few years vs World and there is a clear winner.
But if Technology underperforms over the next time-frame, lets say 10 or 20 years, then the Nasdaq-100 will also underperform, as it is predominantly Technology based.
This could be exacerbated if the Nasdaq encounters the same “challenges” it did in the years 2000 to 2005 ish. And you still get the benefits of any FANG growth from a World ETF, if they do actually grow.
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totally true. for me tech outperformance will continue and become even more dominant even for next 10 years, I could be wrong of course, my worst case is that it underperforms but I can’t see it being by a lot. let’s face it, most ETF’s are Apple, Microsoft, etc. same kind of thing.
Also I wonder, does anyone actually have a 100% Vanguard all world portfolio? I would say no-one on T212 would actually have that by itself. (we are all trying to do better!)
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