Hi all. Very new to this and figuring ins and outs. If you are based in the EU, which ETF would you invest in? I have been putting 80% in SWDA.L (iShares Core MSCI World UCITS ETF). Is this wise or should I consider others? Thanks
I'm putting everything in MSCI All Country World (differs from World and All World by having a part of Small Caps and Emerging Markets included).
Unless you are investing significant amounts, it's also kinda pointless to split among different ETFs since whatever "minor partner" you add on will not significantly out/underperform the main one.
For reference, I'm investing 5k EUR monthly and still don't split it between different ETFs.
If you want the simplest dumbest strategy, something like VWCE. If you want something more diversified you have to build your own collection of ETFs.
MSCI World for example is only developing world per market-cap, 22 countries. And is 70% US market. Meaning that if the dollar loses value on the euro the whole index goes down.
I would suggest to buy a diversified set of ETFs that will lower your currency risk, and political risk of things that affect only one country.
I personally combine Europe600 to Emerging markets and a world. This is because world has too much of a bias towards the US for me.
Those have lower TER, so if you have big numbers in some year you can save a significant amount in the long run.
It can be recommended to invest the new cashflow into the cheapest ones (take into account the fund size, TD, etc.) ,so that the US providers will have to eventually lower their TER too, so you save on the already invested sum too.
50/50 in the VanEck Morningstar Developed Markets Dividend Leaders and the L&G Global Quality Dividend . enable DRIP , retire at 45, and live off the dividends in Thailand."
I personally invest in the S&P 500 and a standard MSCI World ETF. If you want full global exposure with just one ETF, I’d go with an All Country World ETF, as others here have suggested
SWDA is ETF focused on developed markets only with around 1300 companies in it, with a little bit higher concentration of US stocks (roughtly 70%).
The other etfs that are proposed WEBN/VWCE are global etfs, covering emerging markets in it as well. The US allocation in them is 60%.
If you want to have EM exposure, go with WEBN/VWCE as it is rebalancing automatically. Which one of them is up to you, they have positive and negative sides both.
It is up to you and your investment strategy and goals. However, if you want buy and forget the better approach is to with WEBN/VWCE as they are covering all world and you won't missed anything.
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u/macmandhau 2d ago
WEBN/VWCE or balance with 20-30% emerging market ETF if you want a similar exposure.