Completely comes down to your appetite for risk, and also your timeline. I'm another VWCE and chill... I don't want to have to actively manage anything should the S and P 500 tank for any number of reasons. But I'm also in it for the long run, and any money that I invest in an ETF is money that I don't plan on touching until retirement. I have a healthy 9 month cash reserve sitting in an interest-bearing account, that's there for emergencies. Long term an all world ETF will give you great returns without giving you grey hairs.
@penguingobrrbrr353 it has a cheaper TER at least partly because it is not as diversified. It's more concentrated in country. Rebalancing more smaller firms in non-US is more expensive.
Hi Angelo, I'm also 1 etf portfolio person, invest all in Vanguard FTSE all world. I understand the fees are lower in some other cases but I trust Vanguard as a company, so that was my decision making point.
"On a single country's stockmarket" The issue is that The US mega companies (that are the big drivers behind the US stock markets outperformance are global businesses, That wasn't the case 20 years ago the top US companies then were US national reliant, and would underperform if the US economy did badly. This just is no longer the case and you make an error in considering the s&p or nasdaq "american" . the SP 500 will continue to outperform a global index because it's a global index with a quality filter.
True, but S&P 500 companies overall still only derive approx. 28% of their revenue from abroad, which means 72% is still generated in the US. Not saying anyone picking the S&P 500 is wrong, I simply prefer having all outcomes covered over the coming decades myself.
i'm with vanguard ftse all world. when you change etfs is simply keeping the old one as is a good practice? i dont see a value in selling vanguard and buying invesco with it but just asking for your opinion.
Thanks for dropping out this Video, Last year i moved from INDIA to Europe (Netherlands), I do invest in India , but new to ETF's , rentally found out your channel, I had the similar question in my mind & now it's crystal clear , really appreciate it .
would you recommend interactive brokers rather than Trade Republic in terms that being geographically free? im based in Europe but if someday I move out(which is possible) I'll be easier to manage with IBKR right?
If you're already planning to move, then sure! You can always transfer shares from Trade Republic to IBKR (for free) though, so either way you're never locked in.
I want to compliment you, you have said it all. I am a little business owner and I really want to expand my business to the next level by making myself an investor but I really don't know how to go about it..
Venturing into crypto as a newbie was very difficult due to lack of experience which resulted in loosing funds... But miss harriet dixson, restored hope shes a good woman
Without a doubt! mrs harriet is a trader who goes above and beyond. she has an exceptional skill for analyzing market movements and spotting profitable opportunities. Her strategies are meticulously crafted based on thorough research and years of practical experience..
I'm considering building a DIY "world" portfolio by combining three low priced ETFs: SPDR S&P 500 (0.03% TER) + Amundi Prime Japan (0.05%) + Amundi Prime Europe (0.05%). Almost as diversified as a developed world ETF. I know Angelo doesn't like Amundi, but apart from that, what do you think?
@@Petersworld77 Sector as in an industry? Why would I be better off investing.e.g. in a (global?) health industry Sector ETF than in a poor man's global diversification? My concern is that global ETFs are too tech heavy, Euro and Japan ETFs are not and might balance that out.
With 2025 I am planning to start investing and going to use a advisor. I don't believe US, and putting money only in the S&P 500 is a gamble in 2025. I think in next 10 years, emerging markets from BRICS countries will perform as same as US stocks. What is your opinion ?
What is the point of owning multiple All-World ETFs? Is that also a diversification strategy so that you don't go all with one provider who can go bust?
This is a poor analysis that will lead people to a conclusion for the wrong reasons. First, if you want a true comparison between the S&P 500 and the MSCI World, you need to exclude US equities from the MSCI World. Around 70% of the MSCI World is made up of the S&P 500, which has driven much of its performance. Take the remaining 30% (mostly EU, UK, and Japanese equities) and compare it to the MSCI World, you’ll see that the non-US portion has underperformed the S&P 500, significantly. Second, investing in the S&P 500 isn’t just investing in 1 market. Approximately 50% of the revenues generated by big tech (Amazon, Microsoft, Google, etc.) come from international markets. The fact that the companies are listed and HQ'ed in the US doesn't mean that they are not geographically diversified. Even without factoring this in, the MSCI World still carries around 70% exposure to the US equities, presenting similar country risks. Last, tech will continue to be the major market driver, and realistically, expecting a non-US company to become a global tech leader is highly unlikely. Europe’s overregulation and underinvestment will take more than a decade to correct.
I get your argument, but I was trying to compare simple 1-ETF investment strategies many people employ here in Europe. It was never about excluding the US, but rather to help people figure out the pros & cons of a US-only vs. a global investment approach based on available data. True, but S&P 500 companies overall (not just big tech) only derive approx. 28% of their revenue from abroad, which means 72% is still generated in the US. I get that the US has a large market share in World ETFs, which can be either good or bad depending on future US returns. Japan also held the lion's share of the MSCI World at one point before crashing in 1990 though (I think about 40% or so), but the MSCI World recovered relatively quickly while it took the Japanese stock market approx. 30 years (with dividends reinvested).
@@AngeloColomboFi You’re misleading viewers to think they’re choosing between a US-only index and a diversified World Index, when in reality, both overlap by 70%. You reinforced this false impression by comparing MSCI World vs. S&P 500 returns. Instead, you should have focused on the 30% that sets them apart-that’s the actual choice investors are making. You could have picked just one line above in the table, the inflation-adjusted returns show World ex-US at 4.3% and USA at 6.38%, a 48% higher return for the US. Compound that since 1900. Now, looking at recent history, as of Oct 31, 2024, the MSCI World ex-US 10-year return is 5.84%, while the S&P 500’s is 13.00%. This is, the S&P 500 has outperformed the MSCI World ex-US by 122% on average for the past 10 years. On revenue diversification, not all revenue is valued equally. Weight revenue by each company’s multiple, and I believe international revenue moves closer to 50% than 28% (haven't run the numbers to back this up). You don’t need to reference the Japanese market crash of the 90s. A more relevant comparison would be the GFC, which shares more parallels to today. The MSCI World didn’t recover faster in this case. Last, I’m not here to debate performance; hindsight is clear, and the future is uncertain. My point is that you can’t compare apples to 70% apples + 30% pears. This analysis doesn’t serve your audience well, and I felt it needed to be addressed. For the record, I'm also European and concentrate my investments around 1 index, which is the right strategy for most including myself. Data sources: S&P 500: www.spglobal.com/spdji/en/indices/equity/sp-500/?currency=USD&returntype=T-#overview MSCI World & ex-US: www.msci.com/www/fact-sheet/msci-world-ex-usa-index/05833511
Hi @Angelo, I’d appreciate it if you could make a video on investing in an ETF, such as the FTSE All-World, through a broker (like Scalable Capital or Trade Republic) versus investing in the same ETF within a German Level-3 pension plan. I’m interested in understanding if this could lead to significant tax savings. As a resident of Germany, I’d like to hear your opinion on this.
Hi Angelo, I've been a follower since the beginning of the year and wanted to thank you for all the videos and knowledge :) I had a question to which I've been unable to find any answers online: any reason why all the US ETFs domiciled in Ireland disappeared all of a sudden? My IBKR investments automatically shifted to the ETF domiciled in Italy and became Distributing instead of Accumulating. Any thoughts on this, please?
@@AngeloColomboFi Thank you for responding. The EQQQ bvme that was Ireland domiciled is the one that disappeared. Even on justetf, I can no longer find the tickers of any IRE domiciled ETFs, even the most popular ones like S&P500. Am I missing out on something?
Great video. Thank you. Question - if you wanted to change investment fund, or platform brokers, would you sell all of current positions in your fund, or just start to invest in the new fund? I'm having this dilemma, I've been invested for a good few years in a broker which now has significant higher fees than others and also doesn't support all new funds. My new broker doesn't allow full fund transfer, so would need to sell all positions and then buy the new at current price. Mindful that starting with a much bigger lump sum in a new fund could bring much bigger returns and compound quicker What's your strategy here? Thanks 👍
Broker does not in any way has access neither to your shares nor funds. They are obligated to allow transferring out your stocks to a different broker. Otherwise this is just fraud. Your shares are stored at the fund you purchased, and your funds are stored at the custodian. A broker acts as a middleman taking a juicy commission along the way.
@iurevych my apologies. What I meant was - The main fund I own, vanguard lifestrategy 80% is not a fund that exists in the new broker Trading212, so in order to transfer the ISA/account, I would need to sell the fund and then transfer the account. Do you ever consider selling your previous main funds so you can have the entire portfolio combined in the same fund? Thank you
@ ah I see. I think we all have different preferences, but IMO if the whole effort of selling your current fund, transfer to a different broker and buy a new fund is affordable than why not. I haven’t faced this before, but I do have two brokers to feel safe.
I used to buy ftse all world but moved to sp500. Wherever I went I saw that people who earned some money were buying nikes, iphones, Coca-Cola, big macs and so on. Whenever the country is growing US companies are first to earn from that.
Also you are based in EU as well and you can see what is going on here. They are more interested in ecology then economy. Why would you like to have EU in your portfolio while Germans are closing their factories and Americans are withdrawing their investments from Europe?
S&P 500 represents the best 500 companies in USA, has 11 sectors, most are multinational corporations that operate across various continents, generating significant portions of their revenue from outside the United States. With roughly 350 million people, constitutes about 4% of the world’s population (estimated at around 8 billion), yet it produces approximately 35% of the world’s economic output. The U.S. operates under a primarily two-party system, and there is no space for communism or right extreme parties. Constitution supports the development of private businesses, markets, and innovation, which are essential drivers of economic growth. Crises? For sure they will have it, but USA roll the sleeves up and apply the same success recipe of the past and bounce back. When I look into to Europe I have serious difficulties to find excellent companies that focus in economic growth, and most of them are now in trouble because of EU and national government's bullying their strategies to be 'green'. Japan has some few great companies, China has a huge market but the commies are always hovering around. For all those reasons and being normally cheap in terms of costs I align more with S&P 500.
Thanks for sharing, nothing wrong with that if that's your preference! 👌 Well, that's why Europe's share in World ETFs has gotten smaller and smaller (approx. 15% right now) and why valuations are significantly lower compared to US stocks. I'd still like to own the best European stocks as well (one can hope things change for the better at some point🤞), as well as the rest of the world. But I agree that the US is a lot more business friendly.
Europeans may still have some good companies specially if you look for smaller ones in Nordic or Poland but in general US stocks and economy is unbeatable. "Never bet against US"! 😊
Is there a regulation or particular reason for European countries as to why through my Trade Republic account I'm not able to find Invesco & SPDR ETF's? Coming from Latvia, just for reference.
Yes, sadly it seems like investors from Belgium, Greece, Estonia, Latvia, Lithuania, Slovakia, and Slovenia don't have access to SPDR or Invesco ETFs on Trade Republic :( I already contacted them about it, it seems to be due to missing KIIDs in the local language. You should still be able to buy it on Interactive Brokers though: angelo.fi/ibkr If not, please let me know!
It's a topic I definitely still want to cover, as I've been getting more questions about it. It doesn't quite fit my own investment style, as I'd like to keep things as simple as possible, simply collecting the market performance. I'm afraid I could start questioning the decision if a factor ETF underperforms for a prolonged period of time, a situation I'd like to avoid. Generally speaking, I do like quality as well as small cap value as factors though. I still need to look at the new Avantis funds in detail, I'd love to see some backtests if there are any.
Another great video! Thanks Angelo! Do you think it would make sense to invest in both FTSE and S&P 500? This would add some extra diversity while also focusing on the current market leader by country. Interested to know your thoughts 🤔
FTSE All-World is basically 60% S&P 500 and 40% rest of the world. So if you purchase both, you are just changing that 60% US stonks, to be a higher percentage of your portfolio (the opposite of diversification).
I would love a video regarding stock and ETF investments as a couple (joint accounts etc) - we currently use Trade Republic but as 2 separate accounts and would be awesome to hear your advice on this topic
Started with MSCI World, then bought only the Dis. Vanguard FTSE All-World, switched to only buying the Acc. Vanguard FTSE All-World for tax reasons and recently started only buying the less expensive Acc. Invesco FTSE All-World. Since they're all nicely in profit, there's no point in selling older shares and realizing taxable profits early.
Yes! Hopefully Vanguard decides to lower fees across the board in Europe sometime soon (it has been over 5 years with no changes!), then it will be even better.
After facing significant challenges, I learned two crucial lessons about the stock market: it played a major role in the Great Depression, and the quickest way to make a million in the market is to start with two million. The Great Recession only reinforced these insights. In hindsight, I wish someone had guided me earlier. A well-defined entry and exit strategy is essential for success in the stock market.
Lovely historical look back, it clearly shows the benefit of an overall global index fund. I’m curious why you did not decide to go with a distributing ETF if you’re not planning to ever sell it? Imagine you start living off of your portfolio and the market is tanking. Rather than living purely off of dividends you’re gonna have to sell precious shares at a double pace during downturns.
Thank you! Distributing ETFs are less tax-efficient throughout the entire holding period and with fees being as low as 1-1.25€/trade now, you can just simulate the dividends yourself (to the same effect) when you need the money. A distributing ETF doesn't have money magically appear by the way, it simply pays out the dividends it accumulates every 3 months, which reduces the value of its shares by the same amount compared to keeping them in an accumulating fund.
It's the exact same ETF, sometimes different exchanges just use different tickers. You find it using FWIA on Trade Republic and using FWRA on Interactive Brokers (using BVME if you buy in €).
Yes, VWRA is still a great option! My personal preference is FWRA due to its lower fees (0.15% vs. 0.22% p.a.). You can buy both of them on Interactive Brokers directly in USD: angelo.fi/ibkr
Why don’t you hold separate ETFs containing stocks from each e.g. continents that would all add up to all world stocks? This would allow you to rebalance it once in a while so that you would not be to exposed to risks of one part of the world. Eg now all world is dominated by US and if it continuous to outgrow the rest, you would be even more exposed US-related risks? Is there a flaw in this way of thinking or is it simply because “rebalancing” (selling and buying) is simply so tax inefficient so that it so not worth it?
I prefer to keep things as simple as possible, without needing to actively make decisions/assumptions on what I believe is under- or overpriced at each point in time. It also tends to be the more tax-efficient option compared to rebalancing (eg. when selling stuff that's in profit to change allocations).
If you look back 1 year, the € is still up 0.27% vs USD, so it's all a matter of perspective. I wouldn't get hung up on that, as it's not something you're able to influence.
Thank you so much for your work! I have issues with a World-ETF: I don't want to invest in China and Taiwan. Not in the shrinking and aging societys of Japan and South Korea. I don't see a 'indian or african Microsoft'. Europe (unfortunately) has so many problems (car-industry, bureaucracy, different tax-systems, complicated EU, etc). Maybe the S&P 500 seems very attractive and stable at the long term? US-companys are doing their buisness international. Im so undecided ;)
While we lived in Germany, i calculated how much more did we spend with two kids compared with out life before kids. After about 4 years after the birth of our first child, the child allowance and other benefits like Elterngeld not only covered our children related expenses but were over 30.000€ higher than these expenses. Of course my wife didn't work some years.amd the "lost" salaries are not factored in
You are looking at this all wrong. Getting the best returns is about which sector is doing well, not which country. If you dissect the MSCI World index you can see that certain sectors outperform the whole index whilst others underperform and the net result is the world return. So the answer is simple. Invest in those world sectors which outperform the market and leave out those which underperform the market. There are sector specific ETFs and if you pick wisely you will beat all of the indexes you mention.
Are you talking about the Tech sector? If so, isn’t there a risk this is over-priced atm? I personally have some investments in Health & Pharma and Utilities sectors, which have not performed as well as Tech recently but offer a defensive element. My core is still VHVG, developed global ETF.
@@stevegeek not specifically, tech has done well obviously but so has communication services, financials, industrials & consumer discretionary. Healthcare, utilities, energy, materials & consumer staples have all under performed significantly. Might all change under Trump of course so always keeping an eye on it. Nuclear technologies and travel are doing well at the moment too, but they could be a flash in the pan?
Constructive criticism; the unnatural flow due to your video editing makes it difficult to mentally process your information! Imagine a teacher who never breathes and speaks continually as fast as a robot, then you have an idea of how you sound (sorry). Although your information is highly interesting, I can't take it for more than 4 minutes! A few silences here and there with a graph would help to follow better!
@fa5234 I'm going to also @seamus7054 here. As a native English speaker, I like how "no nonsense" your episodes are. You pack a ton of very good gen into your content, which other content creators would stretch out and dilute. To my taste, your way of presenting is absolutely spot on...
Thanks for the detailed comparison helps a lot to understand the different ETFs. I followed you for the investment ideas this year and doing fine for now. Isn’t US based companies (especially tech sector) are selling products across the globe, meaning the company location doesn’t matter but their business model. In the past there were less companies doing the same. Btw I’m into both ETFs 😉
@@AngeloColomboFiI am really interested to listen to you opinion about Invesco MSCI World Equal Weight UCITS ETF Acc In my opinion it offers potentially the lower risk. What I am not sure about is the long term return... It requires a lot of thought if this needs to be combined with another higher risk etf with high returns. Thank you in advance!
What I dislike about the MSCI World is the big portion of Japan. Consodering Japan is losing more than a third of its population within the next decades I do not want any exposure there.
Do you mean the Vanguard ESG All Cap? In that case I'd go for the FTSE All-World, otherwise I'd also be happy with a "normal" Global All Cap ETF personally (if only it was available in the EU).
It's a topic I still want to cover in videos. It doesn't quite fit my own investment style, as I'd like to keep things as simple as possible, simply collecting the market performance. I'm afraid I could start questioning the decision if a factor ETF underperforms for a prolonged period of time, a situation I'd like to avoid. Generally speaking, I do like quality as well as small cap value as factors though.
The US has taken off for the last 14 years due to technology. Apple, Microsoft, Meta, Google, Netflix, etcetera... There seems no hope for Europe, Africa, Mideast, India to create these types of tech companies. Maybe China.
Ich stimme Angelo zu. Aber ein Hinweis zum FTSE ALL WORLD: die TCO ist entscheidend, auch die Tracking Differenz. Die TER ist weniger wichtig (A.Beck). Der Vanguard ETF ist bei der TCO besser: sein Spread ist kleiner, die Kaufkosten also geringer. Extraetf zeigt die XLM an, die ist beim Invesco doppelt so hoch, nicht gut. Was weg ist, ist weg (Kaufkosten).
Muss natürlich jeder selbst entscheiden. Bisher hat Invesco meiner Meinung nach aber jedenfalls die Nase vorn: www.fondsweb.com/at/vergleichen/ansicht/isins/IE000716YHJ7,IE00BK5BQT80
If Mario Draghi's report to the EU on competitiveness is implemented, and we see an actual pro-business Europe, the All-World idea should look much more attractive. India recreating a China-style boom, Latin American leftism fading away, Argentina getting a functional currency, Japanese & Korean people having children, Israel getting on with its Arab neighbours, the end of the theocratic regime in Iran, the end of the Putin dictatorship in Russia, the end of communist rule in China - those would all massively help too. Until then, unfortunately, the S&P looks the best.
Hello Angelo, great video as always. for me the best SP500 right now is the Vanguard S&P 500 UCITS ETF (USD) Accumulating (IE00BFMXXD54), is there any particular reason you never mention it ? thanks again for your hard work :)
You forgot something....the Japanese market crash exposed the vulnerability of companies overly reliant on domestic operations which had a cyclical pattern. Toyota's resilience, rooted in its global footprint, underscores the importance of international diversification. Similarly, many S&P 500 companies thrive due to their global reach and innovative capabilities. As long as they continue to push the boundaries of innovation, they can secure their position. While a cautious approach is understandable with a VWCE ETF, I'm confident in the long-term strength of the US market, which I believe will remain a global leader for the next 40 years. My choice will always be a 90/10 portfolio, allocating 90% to the US S&P500 and 10% to 1-3 year Treasury bonds.
SP500 or World ETF? Nasdaq100. It's not all US companies and it is growth concentrated. However, not everyone can stomach such volatility. I understand you are playing it safe. I would leave SP500/World ETF for a retirement. Thanks for a video. Keep what you are doing.
I see no advantage in investing in emerging markets. Even there is some benefit in terms of descorrelation, it seems that they have poor performance on long term, as emerging markets soon or later will face some unpredictable catastrophic event in the long term, such as war, comunism, dictatorship etc
Trump's reelection probably ensures a stronger US market for the coming 4 years... But you're right, ETF investing should be a passive, long-term plan, and for that, a global ETF is best. I personally chose the SPDR MSCI AWCI IMI, for the best possible diversification.
AWCI funds always underperform other world indexes so why would you choose that? Investors get comfort from being as diverse as possible but the reality is you are just ensuring your portfolio includes every underperforming sector and region. Again, why would you choose that? Just choose MSCI World sector ETFs that perform the best.
@Petersworld77 Past performance is no guarantee for future performance. Since I can't predict the future, I chose to spread my investment out as much as possible. It's more about risk management than pure performance, since that is impossible to predict anyway. I am planning to get into value investing however, with a smaller percentage of my capital, to expose myself to higher risk in return for higher possible gains. But an ETF should be as safe and low-risk as possible for me, over the very long term (20-30 years).
Well, my strategy is to make a three ETFs combination: EQAC (Nasdaq100)=15%, VUAA (SP500)=10% and SWDA(MSCI World)=75%. The advantage is that I don’t have the feeling of missing out on huge growth performances.
So the top 500 Global companies, with the index managed by S&P? :) Wouldn't be too bad, as long as the smaller number of stocks is also reflected in a lower TER (eg. 0.03-0.05% p.a.)
I know, what are you trying to say? Personally, I still don't trust Amundi due to their poor track record: th-cam.com/video/lwUoLSHchS0/w-d-xo.htmlfeature=shared&t=394
No, that was the Amundi Prime Global, which is now moving to Ireland by the end of the year as well (once again horrible tax-wise for holders, as it's counted as a sale in many countries).
The reason sp500 outperforms and will continue to outperform is globalization. US stocks has world impact. They sell worldwide and this is difficult to change at least in our time line nowadays with AI and fourth industrial period
@@AngeloColomboFi Most companies in the S&P 500 are global players. They make money all over the world not just in the US. I like my simple 2 ETF portfolio.
So it all comes down to, Do you believe Amerika S&P500 will stay on top or not for the next 30-40 years PS. Just ETF sometimes shows a very low fund size but the fund is acctually very big a good example is IQSD which is around 717 million but shows 35 million on Just ETF for the DIS version. This is because its the exact same ETF as IQSA and Invesco just splits the dividends themselves over ACC and DIS but you are buying the same ETF that is coverd by 717 million
@@AngeloColomboFi IQSA has a spread of 0.36|0.51 IQSD has a spread of 0.84|1.41% Indeed also something to look at good point you would almost pay a avg 1% fee everytime you invest in IQSD thanks for pointing that out
My pleasure! It's probably best to compare the spread when the largest public exchanges like XETRA are open (eg. 9-17:30 CET), as the one you're seeing now is likely significantly higher in general
China is in a terrible place, Japan didn't do anything even though they work very hard, Europe has no innovation. Why invest in these markets? They also have a lot of population problems. China and Japan will half themselves in this century. What company or market conditions are in a better place than the US?
I get your perspective, the US is a lot more business friendly (again, all of that is priced into higher valuations as well). Things can always change in the future though and I'd rather have all outcomes covered over the coming decades. Nothing wrong with you doing things differently and following your own gut feeling!🙏
FTSE all world is safer for investors living outside the US. It’s a hedge against the US dollar too. Also the magnificent 7 make up approximately 32% of the S&P500 index vs 20% with the FTSE All World.
Thank you! Here are some of the sources: curvo.eu/backtest/en/compare-indexes/msci-acwi-vs-msci-world-vs-sp-500?currency=eur www.longtermtrends.net/msci-usa-vs-the-world/ www.ubs.com/global/en/investment-bank/in-focus/2024/global-investment-returns-yearbook.html www.credit-suisse.com/media/assets/corporate/docs/about-us/research/publications/credit-suisse-global-investment-returns-yearbook-2023-summary-edition.pdf
What do you prefer? :) ETF list below! 👇
🇪🇺Interactive Brokers (ETFs): angelo.fi/ibkr
🇪🇺Trade Republic (ETFs, 3.25% interest): angelo.fi/tr
👉Compare ETFs: angelo.fi/comp
🇦🇹Flatex (ETFs): angelo.fi/flatex
💶My high-yield savings account with 1% saveback on card payments: angelo.fi/save
ETFs mentioned:
📌SPDR S&P 500 Acc. (SPYL)
📌SPDR MSCI World Acc. (SPPW)
📌Vanguard FTSE Developed World Acc. (VHVE or VGVF)
📌Invesco FTSE All-World Acc. (FWRA or FWIA)
📌SPDR MSCI ACWI Acc. (SPYY)
📌SPDR MSCI ACWI IMI Acc. (SPYI)
📌xTrackers MSCI World ex USA Acc. (EXUS)
@AngeloColomboFi how about a hybrid approach e.g 60% S&P and 40% SPYI? What are the drawbacks of this approach?
Completely comes down to your appetite for risk, and also your timeline. I'm another VWCE and chill... I don't want to have to actively manage anything should the S and P 500 tank for any number of reasons. But I'm also in it for the long run, and any money that I invest in an ETF is money that I don't plan on touching until retirement. I have a healthy 9 month cash reserve sitting in an interest-bearing account, that's there for emergencies. Long term an all world ETF will give you great returns without giving you grey hairs.
Get Invesco its much cheaper vs 0.22%
Yes and if USA crash your world etf will stay still 😂😂😂
@@plqqq8206 it will rebalance
@penguingobrrbrr353 it has a cheaper TER at least partly because it is not as diversified. It's more concentrated in country. Rebalancing more smaller firms in non-US is more expensive.
@@plqqq8206 it will not go down by much like only sp500
Hi Angelo, I'm also 1 etf portfolio person, invest all in Vanguard FTSE all world. I understand the fees are lower in some other cases but I trust Vanguard as a company, so that was my decision making point.
Nothing wrong with that, it's still an excellent all in one ETF 🙏
If you want to go set and forget, go All World
If you want to gamble on US outperforming for another few years, overweight SP500
Always a pleasure to listening to your clear messages. Grazie mille!
"On a single country's stockmarket" The issue is that The US mega companies (that are the big drivers behind the US stock markets outperformance are global businesses, That wasn't the case 20 years ago the top US companies then were US national reliant, and would underperform if the US economy did badly. This just is no longer the case and you make an error in considering the s&p or nasdaq "american" . the SP 500 will continue to outperform a global index because it's a global index with a quality filter.
True, but S&P 500 companies overall still only derive approx. 28% of their revenue from abroad, which means 72% is still generated in the US. Not saying anyone picking the S&P 500 is wrong, I simply prefer having all outcomes covered over the coming decades myself.
Excellent point and the reason why the historical comparison in this video doesn’t make sense I think.
Thanks
i'm with vanguard ftse all world. when you change etfs is simply keeping the old one as is a good practice? i dont see a value in selling vanguard and buying invesco with it but just asking for your opinion.
Thanks for dropping out this Video, Last year i moved from INDIA to Europe (Netherlands), I do invest in India , but new to ETF's , rentally found out your channel,
I had the similar question in my mind & now it's crystal clear , really appreciate it .
Thank you, Angelo! Your analyses are always precious
My go to is VWCE 50% + SXR8 50% in 2 ETF portfolio.
I was hoping exactly that you would made this video. Gracie mille! 👍🏻👍🏻👍🏻👍🏻
would you recommend interactive brokers rather than Trade Republic in terms that being geographically free? im based in Europe but if someday I move out(which is possible) I'll be easier to manage with IBKR right?
If you're already planning to move, then sure! You can always transfer shares from Trade Republic to IBKR (for free) though, so either way you're never locked in.
$1MM is no longer enough to retire even in a LCOL area. Should definitely start expanding our horizons...
I want to compliment you, you have said it all. I am a little business owner and I really want to expand my business to the next level by making myself an investor but I really don't know how to go about it..
Assets that can make you rich
*FX
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Venturing into crypto as a newbie was very difficult due to lack of experience which resulted in loosing funds... But miss harriet dixson, restored hope shes a good woman
$750k biweekly changed my mindset and behavior, my goals, my family and l've to say this video has inspired me a lot!!!!❤..
Without a doubt! mrs harriet is a trader who goes above and beyond. she has an exceptional skill for analyzing market movements and spotting profitable opportunities. Her strategies are meticulously crafted based on thorough research and years of practical experience..
Excellent timing with this video!
Danke Angelo!
My strategy:
World, with iShares MSCI, but now moving to Invesco’s FTSE
and
US, with iShares S&P500
I'm considering building a DIY "world" portfolio by combining three low priced ETFs: SPDR S&P 500 (0.03% TER) + Amundi Prime Japan (0.05%) + Amundi Prime Europe (0.05%). Almost as diversified as a developed world ETF. I know Angelo doesn't like Amundi, but apart from that, what do you think?
Japan and Europe have been producing very poor returns for years. It’s not about the country you invest in, it’s about the sector.
@@Petersworld77 Sector as in an industry? Why would I be better off investing.e.g. in a (global?) health industry Sector ETF than in a poor man's global diversification? My concern is that global ETFs are too tech heavy, Euro and Japan ETFs are not and might balance that out.
With 2025 I am planning to start investing and going to use a advisor. I don't believe US, and putting money only in the S&P 500 is a gamble in 2025. I think in next 10 years, emerging markets from BRICS countries will perform as same as US stocks. What is your opinion ?
What is the point of owning multiple All-World ETFs? Is that also a diversification strategy so that you don't go all with one provider who can go bust?
This is a poor analysis that will lead people to a conclusion for the wrong reasons.
First, if you want a true comparison between the S&P 500 and the MSCI World, you need to exclude US equities from the MSCI World. Around 70% of the MSCI World is made up of the S&P 500, which has driven much of its performance. Take the remaining 30% (mostly EU, UK, and Japanese equities) and compare it to the MSCI World, you’ll see that the non-US portion has underperformed the S&P 500, significantly.
Second, investing in the S&P 500 isn’t just investing in 1 market. Approximately 50% of the revenues generated by big tech (Amazon, Microsoft, Google, etc.) come from international markets. The fact that the companies are listed and HQ'ed in the US doesn't mean that they are not geographically diversified. Even without factoring this in, the MSCI World still carries around 70% exposure to the US equities, presenting similar country risks.
Last, tech will continue to be the major market driver, and realistically, expecting a non-US company to become a global tech leader is highly unlikely. Europe’s overregulation and underinvestment will take more than a decade to correct.
I totally agree with what you’re saying about Europe. It's overregulated, and that's why I don't want to invest in European companies
I get your argument, but I was trying to compare simple 1-ETF investment strategies many people employ here in Europe. It was never about excluding the US, but rather to help people figure out the pros & cons of a US-only vs. a global investment approach based on available data.
True, but S&P 500 companies overall (not just big tech) only derive approx. 28% of their revenue from abroad, which means 72% is still generated in the US.
I get that the US has a large market share in World ETFs, which can be either good or bad depending on future US returns. Japan also held the lion's share of the MSCI World at one point before crashing in 1990 though (I think about 40% or so), but the MSCI World recovered relatively quickly while it took the Japanese stock market approx. 30 years (with dividends reinvested).
And the market knows that, US stocks are a lot pricier and the market is not the economy
@@AngeloColomboFi You’re misleading viewers to think they’re choosing between a US-only index and a diversified World Index, when in reality, both overlap by 70%. You reinforced this false impression by comparing MSCI World vs. S&P 500 returns. Instead, you should have focused on the 30% that sets them apart-that’s the actual choice investors are making. You could have picked just one line above in the table, the inflation-adjusted returns show World ex-US at 4.3% and USA at 6.38%, a 48% higher return for the US. Compound that since 1900.
Now, looking at recent history, as of Oct 31, 2024, the MSCI World ex-US 10-year return is 5.84%, while the S&P 500’s is 13.00%. This is, the S&P 500 has outperformed the MSCI World ex-US by 122% on average for the past 10 years.
On revenue diversification, not all revenue is valued equally. Weight revenue by each company’s multiple, and I believe international revenue moves closer to 50% than 28% (haven't run the numbers to back this up).
You don’t need to reference the Japanese market crash of the 90s. A more relevant comparison would be the GFC, which shares more parallels to today. The MSCI World didn’t recover faster in this case.
Last, I’m not here to debate performance; hindsight is clear, and the future is uncertain. My point is that you can’t compare apples to 70% apples + 30% pears. This analysis doesn’t serve your audience well, and I felt it needed to be addressed.
For the record, I'm also European and concentrate my investments around 1 index, which is the right strategy for most including myself.
Data sources:
S&P 500: www.spglobal.com/spdji/en/indices/equity/sp-500/?currency=USD&returntype=T-#overview
MSCI World & ex-US: www.msci.com/www/fact-sheet/msci-world-ex-usa-index/05833511
@@jfontur which one you recommend then?
Hi @Angelo,
I’d appreciate it if you could make a video on investing in an ETF, such as the FTSE All-World, through a broker (like Scalable Capital or Trade Republic) versus investing in the same ETF within a German Level-3 pension plan. I’m interested in understanding if this could lead to significant tax savings. As a resident of Germany, I’d like to hear your opinion on this.
Hi Angelo, I've been a follower since the beginning of the year and wanted to thank you for all the videos and knowledge :)
I had a question to which I've been unable to find any answers online: any reason why all the US ETFs domiciled in Ireland disappeared all of a sudden?
My IBKR investments automatically shifted to the ETF domiciled in Italy and became Distributing instead of Accumulating. Any thoughts on this, please?
My pleasure! Can you give me more details? I'm not sure I understand what you mean. Which Ireland domiciled ETF disappeared in IBKR for example?
@@AngeloColomboFi Thank you for responding. The EQQQ bvme that was Ireland domiciled is the one that disappeared. Even on justetf, I can no longer find the tickers of any IRE domiciled ETFs, even the most popular ones like S&P500. Am I missing out on something?
Great video. Thank you.
Question - if you wanted to change investment fund, or platform brokers, would you sell all of current positions in your fund, or just start to invest in the new fund?
I'm having this dilemma, I've been invested for a good few years in a broker which now has significant higher fees than others and also doesn't support all new funds. My new broker doesn't allow full fund transfer, so would need to sell all positions and then buy the new at current price. Mindful that starting with a much bigger lump sum in a new fund could bring much bigger returns and compound quicker What's your strategy here? Thanks 👍
Broker does not in any way has access neither to your shares nor funds. They are obligated to allow transferring out your stocks to a different broker. Otherwise this is just fraud.
Your shares are stored at the fund you purchased, and your funds are stored at the custodian. A broker acts as a middleman taking a juicy commission along the way.
@iurevych my apologies. What I meant was - The main fund I own, vanguard lifestrategy 80% is not a fund that exists in the new broker Trading212, so in order to transfer the ISA/account, I would need to sell the fund and then transfer the account. Do you ever consider selling your previous main funds so you can have the entire portfolio combined in the same fund?
Thank you
@ ah I see. I think we all have different preferences, but IMO if the whole effort of selling your current fund, transfer to a different broker and buy a new fund is affordable than why not.
I haven’t faced this before, but I do have two brokers to feel safe.
I used to buy ftse all world but moved to sp500. Wherever I went I saw that people who earned some money were buying nikes, iphones, Coca-Cola, big macs and so on. Whenever the country is growing US companies are first to earn from that.
Also you are based in EU as well and you can see what is going on here. They are more interested in ecology then economy. Why would you like to have EU in your portfolio while Germans are closing their factories and Americans are withdrawing their investments from Europe?
S&P 500 represents the best 500 companies in USA, has 11 sectors, most are multinational corporations that operate across various continents, generating significant portions of their revenue from outside the United States.
With roughly 350 million people, constitutes about 4% of the world’s population (estimated at around 8 billion), yet it produces approximately 35% of the world’s economic output.
The U.S. operates under a primarily two-party system, and there is no space for communism or right extreme parties.
Constitution supports the development of private businesses, markets, and innovation, which are essential drivers of economic growth. Crises? For sure they will have it, but USA roll the sleeves up and apply the same success recipe of the past and bounce back.
When I look into to Europe I have serious difficulties to find excellent companies that focus in economic growth, and most of them are now in trouble because of EU and national government's bullying their strategies to be 'green'. Japan has some few great companies, China has a huge market but the commies are always hovering around.
For all those reasons and being normally cheap in terms of costs I align more with S&P 500.
Thanks for sharing, nothing wrong with that if that's your preference! 👌
Well, that's why Europe's share in World ETFs has gotten smaller and smaller (approx. 15% right now) and why valuations are significantly lower compared to US stocks. I'd still like to own the best European stocks as well (one can hope things change for the better at some point🤞), as well as the rest of the world. But I agree that the US is a lot more business friendly.
Europeans may still have some good companies specially if you look for smaller ones in Nordic or Poland but in general US stocks and economy is unbeatable. "Never bet against US"! 😊
Betting all your money against the dollar is risky, which is why I prefer the ftse global, especially as I live outside the US.
S&P500 for me. I believe we are just at the start of AI and think for next 10-20 years we will see tech booming.
Thank you! As usual very useful!
Where to discover all of these indexes and possibilities? Do you have some handy video for this explanation?
USA will do anything that make sure non of the country can do batter economy than USA with 7 fleet thank for the video big fan 👌
Is there a regulation or particular reason for European countries as to why through my Trade Republic account I'm not able to find Invesco & SPDR ETF's? Coming from Latvia, just for reference.
Yes, sadly it seems like investors from Belgium, Greece, Estonia, Latvia, Lithuania, Slovakia, and Slovenia don't have access to SPDR or Invesco ETFs on Trade Republic :(
I already contacted them about it, it seems to be due to missing KIIDs in the local language. You should still be able to buy it on Interactive Brokers though: angelo.fi/ibkr
If not, please let me know!
For MSCI it’s a no brainer: SPDR MSCI World UCITS ETF
Hi Angelo, what do you think about Factor investing like MSCI Quality or the new Avantis Global UTICS ETF's?
It's a topic I definitely still want to cover, as I've been getting more questions about it. It doesn't quite fit my own investment style, as I'd like to keep things as simple as possible, simply collecting the market performance. I'm afraid I could start questioning the decision if a factor ETF underperforms for a prolonged period of time, a situation I'd like to avoid. Generally speaking, I do like quality as well as small cap value as factors though. I still need to look at the new Avantis funds in detail, I'd love to see some backtests if there are any.
Anyone else investing in ftse all world and sp 500? Is this that bad?
Another great video! Thanks Angelo!
Do you think it would make sense to invest in both FTSE and S&P 500?
This would add some extra diversity while also focusing on the current market leader by country. Interested to know your thoughts 🤔
FTSE All-World is basically 60% S&P 500 and 40% rest of the world. So if you purchase both, you are just changing that 60% US stonks, to be a higher percentage of your portfolio (the opposite of diversification).
That's up to you, you would simply be increasing your exposure to US stocks beyond their current 63% share in the FTSE All World.
I would love a video regarding stock and ETF investments as a couple (joint accounts etc) - we currently use Trade Republic but as 2 separate accounts and would be awesome to hear your advice on this topic
Can I ask you why you do you hold 3 same ETF's?
Started with MSCI World, then bought only the Dis. Vanguard FTSE All-World, switched to only buying the Acc. Vanguard FTSE All-World for tax reasons and recently started only buying the less expensive Acc. Invesco FTSE All-World. Since they're all nicely in profit, there's no point in selling older shares and realizing taxable profits early.
Would you say VUAA is a good ticker for investing in the S&P500?
0.07% TER
Go with the SPDR
Yes! Hopefully Vanguard decides to lower fees across the board in Europe sometime soon (it has been over 5 years with no changes!), then it will be even better.
@ Thank you and appreciate the reply 👍 Might go for SPYL since I was looking for the accumulating version.
Great content! Thanks!
After facing significant challenges, I learned two crucial lessons about the stock market: it played a major role in the Great Depression, and the quickest way to make a million in the market is to start with two million. The Great Recession only reinforced these insights. In hindsight, I wish someone had guided me earlier. A well-defined entry and exit strategy is essential for success in the stock market.
Lovely historical look back, it clearly shows the benefit of an overall global index fund. I’m curious why you did not decide to go with a distributing ETF if you’re not planning to ever sell it?
Imagine you start living off of your portfolio and the market is tanking. Rather than living purely off of dividends you’re gonna have to sell precious shares at a double pace during downturns.
Thank you! Distributing ETFs are less tax-efficient throughout the entire holding period and with fees being as low as 1-1.25€/trade now, you can just simulate the dividends yourself (to the same effect) when you need the money. A distributing ETF doesn't have money magically appear by the way, it simply pays out the dividends it accumulates every 3 months, which reduces the value of its shares by the same amount compared to keeping them in an accumulating fund.
For the Invesco FTSE All-World UCITS ETF Acc, which ticker do you use to buy the ETF, FWIA or FWRA? Is there a difference?
It's the exact same ETF, sometimes different exchanges just use different tickers. You find it using FWIA on Trade Republic and using FWRA on Interactive Brokers (using BVME if you buy in €).
Hi Angelo, would you say VWRA is a good ticker for investing in FTSE all world? I am from latin america and my portfolio is in USD.
Yes, VWRA is still a great option! My personal preference is FWRA due to its lower fees (0.15% vs. 0.22% p.a.). You can buy both of them on Interactive Brokers directly in USD: angelo.fi/ibkr
Why don’t you hold separate ETFs containing stocks from each e.g. continents that would all add up to all world stocks? This would allow you to rebalance it once in a while so that you would not be to exposed to risks of one part of the world. Eg now all world is dominated by US and if it continuous to outgrow the rest, you would be even more exposed US-related risks? Is there a flaw in this way of thinking or is it simply because “rebalancing” (selling and buying) is simply so tax inefficient so that it so not worth it?
I prefer to keep things as simple as possible, without needing to actively make decisions/assumptions on what I believe is under- or overpriced at each point in time. It also tends to be the more tax-efficient option compared to rebalancing (eg. when selling stuff that's in profit to change allocations).
MSCI World bought in EUR is a problem now with the weak euro :/ 😢
If you look back 1 year, the € is still up 0.27% vs USD, so it's all a matter of perspective. I wouldn't get hung up on that, as it's not something you're able to influence.
What’s your view on this index fund ? HSBC FTSE all world index C ACC?
Thanks very much Angelo 👍👍.
Thank you so much for your work! I have issues with a World-ETF: I don't want to invest in China and Taiwan. Not in the shrinking and aging societys of Japan and South Korea. I don't see a 'indian or african Microsoft'. Europe (unfortunately) has so many problems (car-industry, bureaucracy, different tax-systems, complicated EU, etc). Maybe the S&P 500 seems very attractive and stable at the long term? US-companys are doing their buisness international. Im so undecided ;)
While we lived in Germany, i calculated how much more did we spend with two kids compared with out life before kids. After about 4 years after the birth of our first child, the child allowance and other benefits like Elterngeld not only covered our children related expenses but were over 30.000€ higher than these expenses.
Of course my wife didn't work some years.amd the "lost" salaries are not factored in
You are looking at this all wrong. Getting the best returns is about which sector is doing well, not which country. If you dissect the MSCI World index you can see that certain sectors outperform the whole index whilst others underperform and the net result is the world return. So the answer is simple. Invest in those world sectors which outperform the market and leave out those which underperform the market. There are sector specific ETFs and if you pick wisely you will beat all of the indexes you mention.
Are you talking about the Tech sector? If so, isn’t there a risk this is over-priced atm? I personally have some investments in Health & Pharma and Utilities sectors, which have not performed as well as Tech recently but offer a defensive element. My core is still VHVG, developed global ETF.
@@stevegeek not specifically, tech has done well obviously but so has communication services, financials, industrials & consumer discretionary. Healthcare, utilities, energy, materials & consumer staples have all under performed significantly. Might all change under Trump of course so always keeping an eye on it. Nuclear technologies and travel are doing well at the moment too, but they could be a flash in the pan?
Constructive criticism; the unnatural flow due to your video editing makes it difficult to mentally process your information! Imagine a teacher who never breathes and speaks continually as fast as a robot, then you have an idea of how you sound (sorry). Although your information is highly interesting, I can't take it for more than 4 minutes! A few silences here and there with a graph would help to follow better!
Noted, I'll keep it in mind for the future!
@fa5234 I'm going to also @seamus7054 here. As a native English speaker, I like how "no nonsense" your episodes are. You pack a ton of very good gen into your content, which other content creators would stretch out and dilute. To my taste, your way of presenting is absolutely spot on...
Thanks for the detailed comparison helps a lot to understand the different ETFs. I followed you for the investment ideas this year and doing fine for now.
Isn’t US based companies (especially tech sector) are selling products across the globe, meaning the company location doesn’t matter but their business model. In the past there were less companies doing the same.
Btw I’m into both ETFs 😉
My pleasure! Yes, S&P 500 companies generate approx. 28% of their revenue from abroad. I'd argue that's not quite as much as most people would assume.
@@AngeloColomboFiI am really interested to listen to you opinion about Invesco MSCI World Equal Weight UCITS ETF Acc
In my opinion it offers potentially the lower risk. What I am not sure about is the long term return...
It requires a lot of thought if this needs to be combined with another higher risk etf with high returns.
Thank you in advance!
Simple buy both do a 50/50 split across both funds
VWCE 85% + AVWS 15% for me !!
What I dislike about the MSCI World is the big portion of Japan. Consodering Japan is losing more than a third of its population within the next decades I do not want any exposure there.
nice work !!
Is history a good way to compare though ?
What’s your view on IWDA?
What about even cheaper ETFs like Amundi Prime Global UCITS (0,05%)? Any one with experience of one of those?
Global all cap or ftse all world which would you say is better for the long run?
Do you mean the Vanguard ESG All Cap? In that case I'd go for the FTSE All-World, otherwise I'd also be happy with a "normal" Global All Cap ETF personally (if only it was available in the EU).
@ It’s the FTSE global all cap index fund by vanguard?
on the long term invesco can rise de price on the ter of the etf.nothing will stay de same on long term.
Nope, costs for market cap weighted ETFs are a lot more likely to go down over time, not up!
Warum schwarz oder weiß? Man kann beides kaufen und dann sich die regionale Zusammensetzung noch genauer zu eigenen Wünschen einteilen.
Wenigere Entscheidungen = wenigere Fehler
What do you think about factor investing strategy?
It's a topic I still want to cover in videos. It doesn't quite fit my own investment style, as I'd like to keep things as simple as possible, simply collecting the market performance. I'm afraid I could start questioning the decision if a factor ETF underperforms for a prolonged period of time, a situation I'd like to avoid. Generally speaking, I do like quality as well as small cap value as factors though.
The US has taken off for the last 14 years due to technology. Apple, Microsoft, Meta, Google, Netflix, etcetera... There seems no hope for Europe, Africa, Mideast, India to create these types of tech companies. Maybe China.
Ich stimme Angelo zu. Aber ein Hinweis zum FTSE ALL WORLD: die TCO ist entscheidend, auch die Tracking Differenz. Die TER ist weniger wichtig (A.Beck). Der Vanguard ETF ist bei der TCO besser: sein Spread ist kleiner, die Kaufkosten also geringer. Extraetf zeigt die XLM an, die ist beim Invesco doppelt so hoch, nicht gut. Was weg ist, ist weg (Kaufkosten).
Muss natürlich jeder selbst entscheiden. Bisher hat Invesco meiner Meinung nach aber jedenfalls die Nase vorn: www.fondsweb.com/at/vergleichen/ansicht/isins/IE000716YHJ7,IE00BK5BQT80
Grande Angelo!
I was thing also with 2 etfs: sp500 + world dividend etf
If Mario Draghi's report to the EU on competitiveness is implemented, and we see an actual pro-business Europe, the All-World idea should look much more attractive. India recreating a China-style boom, Latin American leftism fading away, Argentina getting a functional currency, Japanese & Korean people having children, Israel getting on with its Arab neighbours, the end of the theocratic regime in Iran, the end of the Putin dictatorship in Russia, the end of communist rule in China - those would all massively help too. Until then, unfortunately, the S&P looks the best.
So far VWCE and chill.
Hello Angelo, great video as always.
for me the best SP500 right now is the Vanguard S&P 500 UCITS ETF (USD) Accumulating (IE00BFMXXD54),
is there any particular reason you never mention it ?
thanks again for your hard work :)
That's a great S&P 500 ETF I have actually mentioned before. The Acc. SPDR S&P 500 is simply cheaper now at 0.03% vs. 0.07% p.a.
You can’t beat the TER of WEBN for an all world ETF. What’s your thoughts?
Here's why I'm not a fan of Amundi (check timestamps): th-cam.com/video/lwUoLSHchS0/w-d-xo.html
You forgot something....the Japanese market crash exposed the vulnerability of companies overly reliant on domestic operations which had a cyclical pattern. Toyota's resilience, rooted in its global footprint, underscores the importance of international diversification. Similarly, many S&P 500 companies thrive due to their global reach and innovative capabilities. As long as they continue to push the boundaries of innovation, they can secure their position. While a cautious approach is understandable with a VWCE ETF, I'm confident in the long-term strength of the US market, which I believe will remain a global leader for the next 40 years. My choice will always be a 90/10 portfolio, allocating 90% to the US S&P500 and 10% to 1-3 year Treasury bonds.
Appreciate you sharing your perspective! 🙏
@AngeloColomboFi I do know your situation, family and kid and I respect it. I'm not saying it's a bad strategy please don't get me wrong.
SP500 or World ETF? Nasdaq100. It's not all US companies and it is growth concentrated. However, not everyone can stomach such volatility. I understand you are playing it safe. I would leave SP500/World ETF for a retirement. Thanks for a video. Keep what you are doing.
I see no advantage in investing in emerging markets. Even there is some benefit in terms of descorrelation, it seems that they have poor performance on long term, as emerging markets soon or later will face some unpredictable catastrophic event in the long term, such as war, comunism, dictatorship etc
You forgot one key component - CURRENCY IMPACT.
Trump's reelection probably ensures a stronger US market for the coming 4 years... But you're right, ETF investing should be a passive, long-term plan, and for that, a global ETF is best. I personally chose the SPDR MSCI AWCI IMI, for the best possible diversification.
AWCI funds always underperform other world indexes so why would you choose that? Investors get comfort from being as diverse as possible but the reality is you are just ensuring your portfolio includes every underperforming sector and region. Again, why would you choose that? Just choose MSCI World sector ETFs that perform the best.
@Petersworld77 Past performance is no guarantee for future performance. Since I can't predict the future, I chose to spread my investment out as much as possible. It's more about risk management than pure performance, since that is impossible to predict anyway.
I am planning to get into value investing however, with a smaller percentage of my capital, to expose myself to higher risk in return for higher possible gains. But an ETF should be as safe and low-risk as possible for me, over the very long term (20-30 years).
If US goes down entire world follows. Let’s be honest here
Well, my strategy is to make a three ETFs combination: EQAC (Nasdaq100)=15%, VUAA (SP500)=10% and SWDA(MSCI World)=75%. The advantage is that I don’t have the feeling of missing out on huge growth performances.
I keep saying we need a s&p500 world
So the top 500 Global companies, with the index managed by S&P? :)
Wouldn't be too bad, as long as the smaller number of stocks is also reflected in a lower TER (eg. 0.03-0.05% p.a.)
@AngeloColomboFi exactly. S&p500 has also a criteria that the company to enter needs to be profitable for 3 quarters if not mistaken
There is the L&G Global 100
Amundi Prime All Country World is domiciled in Ireland
I know, what are you trying to say? Personally, I still don't trust Amundi due to their poor track record: th-cam.com/video/lwUoLSHchS0/w-d-xo.htmlfeature=shared&t=394
@@AngeloColomboFi If I remember correctly you said before that this fund is based in luxembourg
No, that was the Amundi Prime Global, which is now moving to Ireland by the end of the year as well (once again horrible tax-wise for holders, as it's counted as a sale in many countries).
The reason sp500 outperforms and will continue to outperform is globalization. US stocks has world impact. They sell worldwide and this is difficult to change at least in our time line nowadays with AI and fourth industrial period
Yes, but everyone knows that and in fact US stocks are very expensive, this could eat a significant portion of the gains
SP500
VOO 60% + VT 40% 😋
Alright, so approx. 85% US and 15% international stocks based on current allocations. Thanks for sharing!
@@AngeloColomboFi Most companies in the S&P 500 are global players. They make money all over the world not just in the US. I like my simple 2 ETF portfolio.
but very low dividend
Nothing wrong with that, it wasn't meant as criticism from my end! 🥂
I'm 60% VWCE, 30% VUAA ( SP500) and 10% QDVE.
Many of the QVDE assets are included on and VWCE and VUAA, so you are betting on the same companies 3x.
Too much overlap
Thanks for sharing!🙏
So it all comes down to, Do you believe Amerika S&P500 will stay on top or not for the next 30-40 years
PS. Just ETF sometimes shows a very low fund size but the fund is acctually very big a good example is IQSD which is around 717 million but shows 35 million on Just ETF for the DIS version.
This is because its the exact same ETF as IQSA and Invesco just splits the dividends themselves over ACC and DIS but you are buying the same ETF that is coverd by 717 million
True, just keep in mind you'll likely still have higher spreads due to lower volume with the ETF version that has the smaller fund size.
@@AngeloColomboFi
IQSA has a spread of 0.36|0.51
IQSD has a spread of 0.84|1.41%
Indeed also something to look at good point you would almost pay a avg 1% fee everytime you invest in IQSD thanks for pointing that out
My pleasure! It's probably best to compare the spread when the largest public exchanges like XETRA are open (eg. 9-17:30 CET), as the one you're seeing now is likely significantly higher in general
China is in a terrible place, Japan didn't do anything even though they work very hard, Europe has no innovation. Why invest in these markets? They also have a lot of population problems. China and Japan will half themselves in this century.
What company or market conditions are in a better place than the US?
I get your perspective, the US is a lot more business friendly (again, all of that is priced into higher valuations as well). Things can always change in the future though and I'd rather have all outcomes covered over the coming decades. Nothing wrong with you doing things differently and following your own gut feeling!🙏
Please dont invest in World ETF and go for S&P instead. I also combine S&P with QDVE as I have a higher risk appetite
You have what? I'm 90% BTC so don't talk here about appetite xD
QDVE is rocking. 35/20 cap. Better than XLK. Good taste.
FTSE all world is safer for investors living outside the US. It’s a hedge against the US dollar too. Also the magnificent 7 make up approximately 32% of the S&P500 index vs 20% with the FTSE All World.
Great video. Which website did you use to access the graphs?
Thank you! Here are some of the sources:
curvo.eu/backtest/en/compare-indexes/msci-acwi-vs-msci-world-vs-sp-500?currency=eur
www.longtermtrends.net/msci-usa-vs-the-world/
www.ubs.com/global/en/investment-bank/in-focus/2024/global-investment-returns-yearbook.html
www.credit-suisse.com/media/assets/corporate/docs/about-us/research/publications/credit-suisse-global-investment-returns-yearbook-2023-summary-edition.pdf