I had the same thought once. But I came to the decision not to do it.
Unlike a state, you can have fluctuations. So 27% bonds really mess up your returns. That's a lot of money you're leaving behind in the long term.
The same with REITs, they don't rise as much, but they still fall with the entire stock market.
Norway has a high proportion because they have to reflect the global economy and real estate is a considerable proportion. As a private investor, you don't have to.
A 2 ETF solution like you already have with MSCI World and Emerging Markets is completely sufficient for a private investor. You will outperform the sovereign wealth fund. The latter slows down its returns through the bond block.
And you can easily sell 3% annually later on.
Unlike a state, you can have fluctuations. So 27% bonds really mess up your returns. That's a lot of money you're leaving behind in the long term.
The same with REITs, they don't rise as much, but they still fall with the entire stock market.
Norway has a high proportion because they have to reflect the global economy and real estate is a considerable proportion. As a private investor, you don't have to.
A 2 ETF solution like you already have with MSCI World and Emerging Markets is completely sufficient for a private investor. You will outperform the sovereign wealth fund. The latter slows down its returns through the bond block.
And you can easily sell 3% annually later on.
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@JBatelli Hey, top comment, but I have a 3 ETF solution 60/30/10 😅
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