1Wk·

Boring wins.

I've been thinking a lot about small-cap stocks, individual stocks, Berkshire & Co. The result: I'm putting the next 50k into the IWDA. Sometimes, the boring portfolio really does win out. 😂

13.10

iShares Core MSCI World ETF

Bought x377.66 at €132.40

€50,001.89

14 Comments

Epi@Epi

1Wk

The high weighting of U.S. stocks, the low diversification relevant to performance, the MSCI World Index’s high maximum drawdown, this ETF’s relatively high costs at 0.2% per annum, the absence of emerging markets, and the long-term, systematic underperformance relative to factors such as the MSCI World Momentum—have you considered all of that as well?

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BoringToFreedom@BoringToFreedom

1Wk

Thanks, and I’ve definitely given it some thought. I keep EM and small-cap stocks separate, as well as gold and money market funds. Momentum would certainly be more exciting. But my current investment goal is increasingly to have to be as “clever” as possible. That’s why I’m investing 50k in IWDA, and on we go. 😉

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G_Capital@G_Capital

1Wk

@Epi …the long-term performance, combined with relatively low volatility, is actually quite decent—and thus better than many investments that carry significantly more risk.

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Epi@Epi

1Wk

@G_Capital I agree with you 100% that the MSCI World is better than many other options.
However, it’s also worse than many other options. And why settle for mediocrity when you’ve already put in so much effort?

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Epi@Epi

1Wk

@BoringToFreedom Okay. But I don't think $XDEM, for example, is that complicated.

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Christope Z.@czwecker

1Wk

@Epi Which one would be better? Just asking myself.

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Epi@Epi

1Wk

@czwecker What do you think? $XDEM vs $IWDA?

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Christope Z.@czwecker

1Wk

@Epi You rate MSCI World lower than some other indices. I'm curious to know what those other indices are.

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Epi@Epi

1Wk

@czwecker Over the long term, the MSCI World, for example, underperforms the $XDEM by about 2% per year and the $CSNDX by about 5%.
You just have to understand why that is and be able to accept the trade-offs that come with the better performance.

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BoringToFreedom@BoringToFreedom

1Wk

@Epi Fair point. XDEM isn't complicated. But to me, "simple" also means not chasing after every potential return upgrade.

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Epi@Epi

1Wk

@BoringToFreedom That's fine. You also have to tailor your investment strategy to your own mindset. And the logic behind the MSCI World Index is, at least, easier to understand than that of the MSCI World Momentum Index. Even if its performance is objectively worse...

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emppsb@emppsb

1Wk

Not sometimes, its like 90% of the time 🤪

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