1D·

Rebalancing: Seeking for advise

After a year of starting to invest and lots of learning, I am deciding to focus mainly on ETF.

I had decided to start balancing my portfolio putting less focus on USA (currently over 60%) .I am planning to achieve 5 ETF with a 20% distribution on each of them.

I am planning to sell my only stock the future($Apple) and add the following ETF:

$EIMI (-0,01%) (Emerging countries)
$EXUS (-0,34%) (Global excluding US)

I would like to read your opinion/advice, thanks in advance for your feedback :)

4Posições

14,24%

1 Comentar

Abrar@abrarmohi

14H

60% USA is not actually a bad thing for the current market. Even the very popular and reliable $VWCE has US weighting around 60%. Underweighting USA could result in lag in performance. The question should be what that 60% USA is consists of. An ETF that is weighted 60% is different from a stock portfolio that is 60% US with a hand few of stocks.

Imo, the best course of action with ETF is probably picking an all-world or world ETF that rebalances itself, and one ETF only. Right now and for several last decades, US performed well which is why the weight is around 60%-70% in most broad ETFs. If it shifts to a different country in the future, the all-world or world will rebalance itself without you needing to sell and rebuy different sector/regional ETFs, provided you also time it correctly.

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