All Country World vs. Nasdaq 100
I've been here for a couple of weeks and regularly look at the portfolios presented and the reactions/recommendations.
One thing is particularly striking in my opinion: All Country World ETFs are generally seen as the holy grail and investments in technology stocks such as the Nasdaq 100 are seen as a risk (just like an overweighting of the USA, according to the motto "be warned"). Why is that?
The annual return of the $QQQ calculated for the last 30 years was 13.76%*
In the case of e.g. $VT (+1.08%) the annual return was 6.23%*
1$ invested in QQQ on 01.02.1994 would be worth 47.87$ today vs. 6.13$ in the case of VT*
*Source: regarding QQQ https://www.lazyportfolioetf.com/etf/invesco-qqq-trust-qqq/
regarding VT https://www.lazyportfolioetf.com/allocation/all-country-world-stocks-portfolio/
Of course, the QQQ drops more in percentage terms than VT in bad phases, but in the long term it still remains better.
In the case of a long investment horizon (e.g. from 15 years) with a savings plan, I see no reason to avoid the QQQ or similar values across the board or to advise against them.
It is not a recommendation on my part, everyone should decide for themselves ... just take everything into consideration...
