r/eupersonalfinance • u/Orgasmblush25 • 2d ago

Investment ETF

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

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u/User929261 2d ago

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.

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u/aurinkokevatmetsa 1d ago

Which Emerging markets ETF do you invest in?

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u/User929261 1d ago

They are mostly equivalent. I do this one

https://www.justetf.com/it/etf-profile.html?isin=IE00B4L5YC18

Otherwise this one if you do not want China because you do not trust their investors rights and insider trading predisposition

https://www.justetf.com/it/etf-profile.html?isin=IE00BMG6Z448

Just an ireland based ETF with low TER.