For me, the composition or number of shares, country distribution and average return also played a role in the decision.
For example, a FTSE All World (3,400 to 4,600 stocks from industrialized and emerging countries) covers more than an MSCI World (1,300 to 1,600 stocks from industrialized countries), and an MSCI ACWI IMI (8,000 to 9,000 stocks from large, mid and small caps) covers even more of the global world than the FTSE All World.
However, the broader the coverage of the world, the lower the return, because it is less concentrated on the world's economic leaders, to put it bluntly.
It is a matter of weighing up how much of the global market you want in a product and whether or not to add missing areas separately.
What do you consider better, being heavily invested in tech for let’s say the coming 30 years via $XLKS (+0.84%) or $XNAS (+0.33%) ? Or being broadly spread via something like the $VWRL (+0.24%) , $VWCE (+0.15%) , or $FWRG (+0.24%) in the form of an all-world ETF? Keeping in mind my other plays are mostly financial and infrastructure individual picks.
Small switch from my 2 funds (approx. EUR 18,000) into the FTSE All World. 8,000 one-off investment and a savings plan of EUR 1,000 per month until December. Then the savings rate will probably level off at EUR 500.
When RENK and Microsoft start up, the amounts will also flow into the ETF. Hopefully my last switch for the next few decades. 😅
I did some spring cleaning this week and rebuilt my depot.
Not out of panic or fear, but for more peace and quiet,
with the aim of not opening the depot several times a day to see what could be changed in a pointless way. And thus to reduce opening the app to just a few days a month.
After 5 years of successfully "outperforming" the market in my opinion. I have divested myself of almost all individual stocks and significantly reduced my heavily overweighted Nvidia position.
Not because I think the time has come for $AAPL (-1.33%) $MSFT (+2.95%) $AVGO (+1.14%) $NVDA (-0.37%) &Co. has slowly come. But simply to reduce the individual stock risk and to position myself broadly with the $VWCE (+0.15%) broad positioning for the first time. As I still have many decades ahead of me, I am also letting the $CSNDX (+0.32%) to maintain a certain tech boost.
In conclusion, I can say this. I'm sleeping better now than I have for a long time
