7Mon·

Quick trivial question about EM vs Europe:

I am relatively at the beginning of my investment career. My investment horizon is therefore +30 years.

I am currently saving the $IWDA (-0.9%) and the $SMEA (-1.03%) The original idea was to overweight Europe.

Now I'm wondering whether the overweighting makes sense or whether I'd be better off investing in the $SMEA (-1.03%) should I switch to the $IEMA (-0.89%) should be reallocated. A combination of all three ETFs would of course also be conceivable.

What do you think?

5 Comments

wasi@wasi

7Mon

There is generally nothing against it, weighting is just personal preference.
Some people want 30% EM, whereas I want 0% - my 20% goes into the $INR

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PunktPunktKommaStrich@PunktPunktKommaStrich

7Mon

All in $IWDA or take an All World.

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ChrisRic@ChrisRic

7Mon

Okay. Because people always talk about the model portfolio World + EM. But the performance of EM in recent years has not been nearly as good as in Europe. Can change, of course. Crystal ball.

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wasi@wasi

7Mon

@ChrisRic Exactly. I had liquidated EM at some point because the performance was/is poor. I also don't believe that EM will come close to the industrialized countries in the near future. I'd rather pick out the cherries, what do I want with Brazil, South Africa, Mexico...
But in the end, as I said, it's just personal preference.
edit: You don't necessarily have to diversify by country/continent. You could also put the 20% in a Nasdaq or S&P500. Or Bitcoin 😏

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ChrisRic@ChrisRic

7Mon

@wasi Thank you. I see it the same way! I have various satellites such as Nasdaq and 1-2 altcoins in my secondary portfolio. I was - in my opinion - too late for Bitcoin and am waiting for the end of the bull run.

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