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MSCI Inc.

MSCINYSE

519.92

USD
+4.71
(+0.91%)
Market Closed
50.14P/E
41Forward P/E
2.52P/E to S&P500
41.572BMarket CAP
0.85%Div Yield
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Companies are part of msci Inda you can short or ask them to remove adani companies

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Hi all,

[Question: MSCI world ETF, hedged? For EUR citizen]

I’ve been investing for quite some years now. At first only in semiconductor companies (giving me a massive return), but gradually I started to investigate other stocks and started diversifying my portfolio.

Quite quickly I started to invest in the MSCI world index. As I’m (now, at least) quite risk averse, I split my MSCI world investments into three buckets:

  • 15% of my portfolio in MSCI World;
  • 15% of my portfolio in MSCI World, ESG companies only;
  • 15% of my portfolio in MSCI World, currency effects hedged;
  • (leaving the remaining 55% to other ETFs and individual stocks).

Now to my question. Does it make sense to invest in a hedged MSCI World index?

  • The costs are higher. So this will impact my returns;
  • The MSCI World is by nature diversified (even though approx 70% are USD companies). Currency effects should thus even-out on the long-term;
  • I’m an EU citizen, so for me its important to have my returns in EUR. All three MSCI world ETFs Ive selected are noted in EUR, but they are inherently exposed to currency effects.

What are your thoughts?

Cheers

Lovain

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Hi all,

[Question: does a hedged MSCI world ETF make sense as an EU citizen?]

I’ve been investing for quite some years now. At first only in semiconductor companies (giving me a massive return), but gradually I started to investigate other stocks and started diversifying my portfolio.

Quite quickly I started to invest in the MSCI world index. As I’m (now, at least) quite risk averse, I split my MSCI world investments into three buckets:

  • 15% of my portfolio in MSCI World;
  • 15% of my portfolio in MSCI World, ESG companies only;
  • 15% of my portfolio in MSCI World, currency effects hedged;
  • (leaving the remaining 55% to other ETFs and individual stocks).

Now to my question. Does it make sense to invest in a hedged MSCI World index?

  • The costs are higher. So this will impact my returns;
  • The MSCI World is by nature diversified (even though approx 70% are USD companies). Currency effects should thus even-out on the long-term;
  • I’m an EU citizen, so for me its important to have my returns in EUR. All three MSCI world ETFs Ive selected are noted in EUR, but they are inherently exposed to currency effects

What are your thoughts?

Cheers

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These are the other options available:

  • Aberdeen Physical Gold ETF (SGOL)
  • Invesco DB Commodity Index Tracking Fund (DBC)
  • Invesco QQQ Trust (QQQ) iShares 0-5 Year TIPS Bond ETF (STIP)
  • iShares Core International Aggregate Bond ETF (IAGG)
  • iShares MSCI KLD 400 Social ETF (DSI)
  • iShares MSCI USA ESG Select ETF (SUSA)
  • Real Estate Select Sector SPDR ETF (XLRE)
  • Schwab Short-Term US Treasury ETF (SCHO)
  • Schwab US Dividend Equity ETF (SCHD)
  • Schwab US Small-Cap ETF (SCHA)
  • SPDR Dow Jones Industrial Average ETF (DIA)
  • SPDR S&P 500 Fossil Fuel Rsrv Free ETF (SPYX)
  • Vanguard Cash Reserves Federal MMkt Adm (VMRXX)
  • Vanguard Emerging Markets Govt Bd ETF (VWOB)
  • Vanguard Growth ETF (VUG)
  • Vanguard Intermediate Term Govt Bd ETF (VGIT)
  • Vanguard Mid Cap ETF (VO)
  • Vanguard Value ETF (VTV)
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https://www.ishares.com/us/products/239659/ishares-msci-india-etf

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Hello friend,

For reference (33M) I've gone 75% VGS, 20% VAS and 5% VGE.

Super matches with 80% International Shares (MSCI World Developed Markets ex-Australia) and 20% Australian Shares (S&P/ASX 200 Accumulation Index).

100% equities (no cash/bonds). Might introduce these slowly outside Super as I progress towards in ~14 years.

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INDA iShares MSCI India ETF

Because I know you are using Robinhood.

I mean, your friend is using Robinhood.

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>40% FPADX,

You'll probably want to use

>iShares MSCI EAFE International Index Fund - Class K Shares .04 ER + .01 mgmt fee

For 3/4 of that 40%. Ex-US is about 40% of the global market cap weight, roughly 75% of that is developed markets, about 25% is emerging. FPADX is only emerging.

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As a beginner go as broadly as possible. Like msci all world. Its the safest bet to get some gains.

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I am not an expert and am UK based (dollar to pound exchange rate could have affected), but have a few eft's the best world one I have had in these last difficult 12 odd months is MSCI world quality etf buying a bit every few months (DCA, dollar cost averaging as hard to time the market which makes lump sums more risky IMHO). I am actually a bit up (2%) on this one.

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Can someone explain what happened with Turkey? As an ignorant American I just perceived them to have wild inflation and almost authoritarian regime, or at least that's how the media portrayed it.

But if the MSCI is doing well, I assume their economy is robust and growing?

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If I had told you January 2022 that...

A) the best performing ETF index in the world, (on any theme/sector/region) would be:

  • MSCI Turkey (US dollars)
  • and UK equity not far behind.

b) meanwhile, the worst themes:

  • Video games and esports
  • Artificial intelligence and robots
  • Cybersecurity
  • Cloud tech
  • Fin tech
  • UK gilts

would you have believed me?


(I feel bad for any Brits who switched out of UK stocks for the 'safety' of UK gilts in Jan 2022, e.g. approaching retirement and wanting to preserve fund value.)

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If I had told you January 2022 that...

A) the best performing ETF index in the world, (on any theme/sector/region) would be:

  • MSCI Turkey (US dollars)
  • and UK equity not far behind.

b) meanwhile, the worst themes:

  • Video games and esports
  • Artificial intelligence and robots
  • Cybersecurity
  • Cloud tech
  • Fin tech
  • UK gilts

would you have believed me?


(I feel bad for any Brits who switched out of UK stocks for the 'safety' of UK gilts in Jan 2022, e.g. approaching retirement and wanting to preserve fund value.)

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Personally I like the Core MSCI World ETF aswell as a little of MSCI World Small Caps ETF!

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https://www.ishares.com/us/products/239659/ishares-msci-india-etf

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Try msci india etf

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I've never seen a US domiciled ETF that tracks any Nikkei index.

Have you considered the funds that track the MSCI Japan index instead?

Alternatively, if can always trade Nikkei futures (avail in Yen and USD) if you are looking at short term trades.

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Excerpt:

>For tenants across the country, the huge rent hikes of recent years have been a burden. For the private investment firms emerging as America’s landlords, they’ve been a bonanza.

>Amid a flurry of sales over the past decade, when more than $1 trillion of apartment buildings changed hands, private investors and real estate trusts went on a binge: The proportion of apartments sold to them rose from 44 percent in 2011 to 70 percent in early 2022, according to data and research firm MSCI.

>Many of those same firms imposed aggressive rent increases and rode the historic wave of rent hikes to big profits.

>Few, however, stood to benefit more than Starwood Capital Group.

> 

>A private investment firm led by Florida billionaire Barry Sternlicht, Starwood has been one of the most active acquirers of apartments, and a model for the industry.

>Over the past seven years, it has amassed a portfolio of more than 115,000 apartments, which by some rankings stands as the nation’s largest such collection.

>Private firms rarely disclose specific information about rent hikes, but according to leases reviewed by The Washington Post, prices at some Starwood complexes increased by 30 percent or more annually.

>At Starwood’s Estates at Wellington Green in Palm Beach County, Fla., the company raised some rents by as much as 52 percent in 2022; at the Griffin Apartments in Scottsdale, Ariz., it increased them by 35 percent over the same period.

>At the Cove at Boynton Beach in Florida, it boosted rents on some units by as much as 93 percent in 2022.

> 

>“Tenants seem capable and willing to pay these rent increases,” Sternlicht said in early 2022 in a call with investors. “I think this is the strongest real estate market I’ve seen in 30 years, 35 years.”

>While Starwood says its prices merely reflect market forces and its own rising costs, the growing role of private investors among the nation’s apartment landlords coincides with a historic wave of rent hikes.

>Starwood provided some figures to The Post showing that the company raised rents at an average rate of 17 percent in its top 10 markets from January to September 2022.

>By comparison, overall rents rose in those same markets at a rate of about 12 percent over that period, according to numbers from CoStar, the data firm, shared by Starwood.

>Contrary to Sternlicht’s assessment that tenants are “capable and willing” to pay more, those at several Florida apartment complexes owned by Starwood affiliates said they are struggling to pay the higher rates.

>Of 20 people interviewed across four complexes in Palm Beach County, where rent hikes have been particularly sharp, all said they felt a pinch from increases that ranged from $100 to $1,363 more per month.

>Many were people of modest incomes. Some work two jobs. Among them were home health aides, a pool cleaner, security guards, warehouse employees and restaurant workers.

> 

>While rising rents are often justified as a simple matter of supply and demand, they are also the product of countless individual decisions by landlords.

>Among the most aggressive landlords, researchers and industry experts say, are large investment groups that buy and sell apartments — especially those that are not trying to build a brand or reputation as an apartment company.

>“At large outfits that invest in unbranded apartments, it’s just pure profit maximization,” said Russell James, a professor at Texas Tech’s School of Financial Planning who has studied tenant satisfaction at apartment buildings owned by large ventures.

>“There is less incentive to do anything other than charge the maximum amount.”

>The shorter-term time horizon puts pressure on owners to raise rents because the price of a building often depends upon how much rent money it can produce.

>The way executives are paid also encourages rent increases: The managers of the investment firms often earn large fees based on profits, and those profits can be fattened with higher rents.

>A representative for Starwood noted that some large public real estate trusts — not just private investment groups — have raised rents by large amounts, too.

Peter Whoriskey, 2 Jan. 2023, The Washington Post.

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I think I can, I'm not sure I will.

There are many bad companies and there are many good companies in the index (I personally have my ETFs in MSCI World, but the same applies to it), and I think it is not terribly difficult to understand which are the good ones.

I have about a third of my portfolio in MSCI World (and a small cap ETF and an EM ETF). The rest I have in a diversified basket of stocks that will probably be strongly correlated to S&P 500. Since I think they are good companies and some of the best in their respective sectors, I think it should modestly outperform S&P 500 in the long run. My goal is not to pick 10-baggers and trade speculatively, but instead tip the scales toward the good companies in the index.

I try to invest in good companies with good management that have considerable moat, optionality and a history of innovation, pricing power and good margins. I focus on growing free cash flows, returns to shareholders (preferably buybacks), ROIC (which I consider the most important metric). Bonus points for performing well during recessions, though that is not something I target specifically. No company is perfect, but I try to find stocks that score highly in most of these aspects.

I don't care that much about current valuation (PE) since I focus on returns over decades (I'm probably at least 30 years from retirement, more likely even 35), but I try to invest in the best deals possible at the time out of the companies that fit my preferences. I invest regularly every month, so I'm okay with buying at a higher valuation at times and lower valuation at other times. In my opinion, buying at the best possible time is more difficult than buying a good company.

I think it's not terribly difficult to pick companies from the better weighted half of the index. I know that most investors underperform the market, but I think most investors are irrational hacks, if I'm being completely honest; also, many investors do not optimise for returns (but low volatility, instead, as an example), so these slightly skew those results.

I have a couple "moonshot" grow stocks, together accounting for single-digit % of my portfolio, which do not really fit my targeted metrics mentioned above, but I'm okay with that.

My goal is not doing 50% in a year or buying low and selling high. My goal is to outperform the index modestly, at maybe 1-3% annually, which would compound very nicely over decades. I'm okay with the risk that I underperform at such a modest rate.

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I’d go with VTI instead of VOO plus VXF. VTI used to track the Wilshire 5000, but there were some problems with the illiquidity of the smallest penny stocks in the index. So they switched twice to the CRSP’s index. If you combine the S&P 500 plus the Wilshire 4500, you’ll end up with those original problems. There’s a Bogleheads on Investing podcast episode about why they switched. The Russell 2000 is similarly vulnerable to problems like frontrunning.

> Dow Jones U.S. Total Stock Market Index (formerly known as the Dow Jones Wilshire 5000 Index) through April 22, 2005; MSCI US Broad Market Index through June 2, 2013; and CRSP US Total Market Index thereafter.

Otherwise, this is a good idea and what I do. It’s not that much extra work to buy these funds instead of VT.

Also, I legitimately recommend Robinhood to people nowadays. I opened up a Roth IRA account there a few weeks ago and they gave me my exact portfolio: VTI, VEA, VWO, BND. The only difference was they had a slightly more conservative allocation to bonds. They can auto invest in this portfolio for me (though I just lump summed and did it myself). Because of their 1% match, they’ve officially beaten out Fidelity’s Zero fund based IRAs as the absolute cheapest possible method for a Boglehead to invest. Maybe this is pedantic, but given your down to the penny math you seem like you’d appreciate it like me.

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VT

​

= VTI + VXUS (60/40)

​

= FTSE Global all Cap Index

​

= MSCI ACWI IMI Index

​

= MSCI World + MSCI Emerging Markets + MSCI World Small Cap + MSCI Emerging Markets Small Cap (77/8/13/2)

​

Search for ETFs that track those Indizes.

​

If you dont worry about Small Cap Companies, you can look for MSCI ACWI or FTSE All World ETFs. You can have a look at the Factsheets of those Indizes to have a look how they represent the World economy :)

​

https://research.ftserussell.com/Analytics/FactSheets/temp/06ceb833-1654-47b6-abed-4c249c9eb032.pdf

​

https://www.msci.com/documents/10199/8d97d244-4685-4200-a24c-3e2942e3adeb

​

The idea of investing monthly is mostly to make it a habit to invest from your salary automatically like paying your rent etc. Also this way you maximise your "time in the market" because keeping the money to try to "time the market" is doomed to fail in the long run for most people.

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So should I move my 401k in to the MSCI EAFE Index if it's my only foreign option?

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Excerpt:

>Since the invasion of Ukraine began, we have been tracking the responses of well over 1,200 companies, and counting.

>Over 1,000 companies have publicly announced they are voluntarily curtailing operations in Russia to some degree beyond the bare minimum legally required by international sanctions — but some companies have continued to operate in Russia undeterred.

>Originally a simple "withdraw" vs. "remain" list, our list of companies now consists of five categories—graded on a school-style letter grade scale of A-F for the completeness of withdrawal.

>The list below is updated continuously by Jeffrey Sonnenfeld and his team of experts, research fellows, and students at the Yale Chief Executive Leadership Institute to reflect new announcements from companies in as close to real time as possible.

>Yale CELI List of Companies

>How We Do It: We have a team of experts with backgrounds in financial analysis, economics, accounting, strategy, governance, geopolitics, and Eurasian affairs with collective fluency in ten languages including Russian, Ukrainian, German, French, Italian, Spanish, Chinese, Hindi, Polish and English, compiling this unique dataset using both public sources such as government regulatory filings, tax documents, company statements, financial analyst reports, Bloomberg, FactSet, MSCI, S&P Capital IQ, Thomson Reuters and business media from 166 countries; as well as non-public sources, including a global wiki-style network of 250+ company insiders, whistleblowers and executive contacts.

Further reading:

The world economy no longer meeds Russia — With alternative sources in place, Putin’s attempt at blackmailing Europe on energy has failed, 19 Jan. 2023, https://foreignpolicy.com/2023/01/19/russia-ukraine-economy-europe-energy/

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MSCI world doesn't have EM or small caps, so if you want any you need to add them separately. MSCI is the index provider not the fund manager.

Momentum means the fund holds stocks that have been rising over the past x months.

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Where do you see 500%? I checked iShares MSCI Tyrkey and it’s up around 100% during the pasg year. A lot, but far from 500%.

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Morningstar: The Do-It-Yourself Thrift Savings Plan.

$EFA trackers the MSCI EAFE Index.

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Hi, I’m 23 I now work and have some money saved and I wanna start investing (something like 300 per month). I’ve been searching on internet for a pretty long time now to be sure to understand a lot of things and not do shitty decisions. To begin with I want something long term and not too risky so I learned a lot about ETFs. I went to a conclusion and I wanna know if it is a good idea, I wanna DCA these 4 ETFS :

  • MSCI Emerging Markets EUR
  • MSCI World small cap USD
  • MSCI World EUR
  • Edge World Momentum USD I was also interested by S&P 500 and maybe equaly weighted.

So ye do you think something wrong with my plan ? Thank you in advance, I’m not looking to be babysitted I did a lot of researches myself during a long time but Ye you get me

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The New York Times published a guest essay calling ESG a sham. The author pointed out its a way to capture fees from people who think the ESG rating agencies are focusing on ethical companies when really many focus on which companies will benefit most or be harmed least by various social phenomena.

Excerpt from NYT article:

“McDonald’s, for instance, was given an upgrade of its E.S.G. rating last year by MSCI, which cited reduced risks to the company’s bottom line as a result of changes that the company made concerning packaging material and waste. But greenhouse gas emissions from the operations and supply chain of McDonald’s, which is one of the world’s largest buyers of beef, grew by 16 percent from 2015 to 2020. Those emissions are a direct cause of climate change, but because MSCI didn’t see them as posing a financial risk for McDonald’s, they didn’t negatively affect the rating.”

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First of all congrats on your financial success!
Disclaimer: Don't take my words seriously, you should talk to a financial advisor as you have enough money. (A financial advisor that does not take provisions, because that would make his advice biased.)

Well ... if you are ok with 2.5% interest, you can just pay off your mortgage and your net return is 2.5% and in comparison to other forms of investment, you won't pay taxes on the "returns". If you factor that in, the return is ok and it's 100% safe.

You could put some % in paying off debt and some % in buying a high yield msci world they have a little less volatility. Then you would have a mix between security and return. If in 5 years, the msci world high yield has crashed, you can just hold that asset and use the dividends to pay off mortgage later.

Now since you are asking here I can tell you what no payed financial advisor will tell you: The dream house will make you happy the next day. the next week. the next month. Maybe if you lucky even the next year. But if you are neuro-typical it won't last forever.

Don't take it from me, see yourself on page 22:
http://wh1.thewebconsole.com.s3.amazonaws.com/wh/1564/images/Money-Happiness-2002.pdf
Japan's standard of living has increase 500%, happiness has stayed the same. It's the same in all developed countries basically. Income of everyone has gone up for decades, no incrase in happiness. Even a slight decrase of happiness and an increase in depression. what I am talking about let's think about the long, long term perspective. It's just that we are bombarded with ads every day and are surronded by people that are also bombarded by it so that we subconciously believe it's true. It's propbably not. But decide for yourself what part you believe from this post.

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Have had PFE for decades have 4 figure shares from reinvestment from 100s.

Covid vaccine generates ~1% of corp revenue. They sell vaccine at cost since NIH give grant for the development. The rating from analysts Moringstar is 3 star and MSCI is rated A. Zacks 3 or B grade. Looks like time to load up these as there are other pandemic on its way.

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So, this is a very interesting challenge. Here's what I learned about Vanguard Global Stock Index Fund. It tracks the MSCI World Index MSCI World Index has no emerging markets and no small cap international. This is very much like the ETF traded in the US under the ticker symbol URTH.

The Vanguard Emerging Markets is very much like the ETF traded in the US under the ticker symbol EEM. EEM also does not include small cap.

So unfortunately you have no mechanism in this account to give yourself exposure to small cap at all.

However, if you want to try to match VT with a combo of URTH and EEM, you can use a tool from portfolio visualizer to try to make a clone: https://www.portfoliovisualizer.com/match-factor-exposure?s=y&type=1&symbol=VT&symbols=URTH+EEM&maxPositions=2&factorDataSet=0&factorModel=3&useHMLDevFactor=false&includeQualityFactor=false&includeLowBetaFactor=false&weighting=EQUAL_WEIGHT. The return waiting shows about 85% developed all world, 15% emerging would be the closest you could do.

Another approach would be to try to match using Morningstar's Portfolio X-Ray and compare a 85 URTH/15 EEM combo to VT in terms of stock style boxes, world regions and sector holdings. I tried this and it seemed like a reasonable approximation.

So all of that was a long-winded way of suggesting 85/15 instead of 80/20.

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Apple Inc.
Microsoft Corp.
Amazon.com Inc.
Alphabet Inc. Class A
Berkshire Hathaway Inc. Class B
UnitedHealth Group Inc.
Johnson & Johnson
Alphabet Inc. Class C
Exxon Mobil Corp.
JPMorgan Chase & Co.
Procter & Gamble Co.
NVIDIA Corp.
Visa Inc. Class A
Tesla Inc.
Home Depot Inc.
Eli Lilly & Co.
Chevron Corp.
Mastercard Inc. Class A
Pfizer Inc.
AbbVie Inc.
Merck & Co. Inc.
Facebook Inc. Class A
PepsiCo Inc.
Coca-Cola Co.
Broadcom Inc.
Bank of America Corp.
Thermo Fisher Scientific Inc.
Costco Wholesale Corp.
McDonald's Corp.
Walmart Inc.
Abbott Laboratories
Cisco Systems Inc./Delaware
Danaher Corp.
Accenture plc Class A
NextEra Energy Inc.
Linde plc
Walt Disney Co.
Wells Fargo & Co.
Verizon Communications Inc.
Philip Morris International Inc.
Adobe Inc.
Bristol-Myers Squibb Co.
Comcast Corp. Class A
Texas Instruments Inc.
Raytheon Technologies Corp.
NIKE Inc. Class B
ConocoPhillips
Honeywell International Inc.
Amgen Inc.
Netflix Inc.
AT&T Inc.
Charles Schwab Corp.
International Business Machines Corp.
Union Pacific Corp.
United Parcel Service Inc. Class B
Salesforce Inc.
Caterpillar Inc.
Lockheed Martin Corp.
QUALCOMM Inc.
Elevance Health Inc.
CVS Health Corp.
Oracle Corp.
Lowe's Cos. Inc.
Deere & Co.
Starbucks Corp.
Boeing Co.
S&P Global Inc.
Intel Corp.
Morgan Stanley
Gilead Sciences Inc.
Goldman Sachs Group Inc.
Advanced Micro Devices Inc.
Prologis Inc.
Intuit Inc.
Medtronic plc
Cigna Corp.
BlackRock Inc.
Automatic Data Processing Inc.
American Tower Corp.
Intuitive Surgical Inc.
General Electric Co.
Mondelez International Inc. Class A
TJX Cos. Inc.
T-Mobile US Inc.
Chubb Ltd.
Applied Materials Inc.
Analog Devices Inc.
Stryker Corp.
Citigroup Inc.
American Express Co.
Marsh & McLennan Cos. Inc.
Altria Group Inc.
PayPal Holdings Inc.
Duke Energy Corp.
ServiceNow Inc.
Booking Holdings Inc.
Southern Co.
EOG Resources Inc.
Progressive Corp.
Schlumberger Ltd.
Northrop Grumman Corp.
Vertex Pharmaceuticals Inc.
Regeneron Pharmaceuticals Inc.
Becton Dickinson and Co.
Target Corp.
Air Products & Chemicals Inc.
3M Co.
Boston Scientific Corp.
Colgate-Palmolive Co.
CSX Corp.
Humana Inc.
Waste Management Inc.
PNC Financial Services Group Inc.
Eaton Corp. plc
US Bancorp
Zoetis Inc.
General Dynamics Corp.
Illinois Tool Works Inc.
Equinix Inc.
CME Group Inc.
Aon plc Class A
Crown Castle Inc.
Moderna Inc.
Fiserv Inc.
Lam Research Corp.
Intercontinental Exchange Inc.
Truist Financial Corp.
Norfolk Southern Corp.
Emerson Electric Co.
Dollar General Corp.
Sherwin-Williams Co.
Marathon Petroleum Corp.
Micron Technology Inc.
Freeport-McMoRan Inc.
Activision Blizzard Inc.
KLA Corp.
McKesson Corp.
O'Reilly Automotive Inc.
Blackstone Group LP Class A
Estee Lauder Cos. Inc. Class A
Pioneer Natural Resources Co.
Dominion Energy Inc.
Archer-Daniels-Midland Co.
HCA Healthcare Inc.
General Mills Inc.
Phillips 66
Valero Energy Corp.
Synopsys Inc.
American Electric Power Co. Inc.
Sempra Energy
American International Group Inc.
Uber Technologies Inc.
AutoZone Inc.
Centene Corp.
Edwards Lifesciences Corp.
Ford Motor Co.
Roper Technologies Inc.
Kimberly-Clark Corp.
Amphenol Corp. Class A
General Motors Co.
Agilent Technologies Inc.
Cadence Design Systems Inc.
Johnson Controls International plc
Travelers Cos. Inc.
Dexcom Inc.
Moody's Corp.
Motorola Solutions Inc.
Occidental Petroleum Corp.
Exelon Corp.
MetLife Inc.
Marriott International Inc./MD Class A
Corteva Inc.
Palo Alto Networks Inc.
Public Storage
FedEx Corp.
Autodesk Inc.
Ross Stores Inc.
Aflac Inc.
Devon Energy Corp.
Fidelity National Information Services Inc.
Williams Cos. Inc.
Biogen Inc.
Realty Income Corp.
Arthur J Gallagher & Co.
L3Harris Technologies Inc.
Hess Corp.
Lululemon Athletica Inc.
Snowflake Inc. Class A
Cintas Corp.
Sysco Corp.
Trane Technologies plc
Microchip Technology Inc.
Chipotle Mexican Grill Inc. Class A
Simon Property Group Inc.
Xcel Energy Inc.
IQVIA Holdings Inc.
Paychex Inc.
Newmont Corp.
Parker-Hannifin Corp.
Ecolab Inc.
Cheniere Energy Inc.
Monster Beverage Corp.
Prudential Financial Inc.
TE Connectivity Ltd.
Constellation Brands Inc. Class A
Yum! Brands Inc.
Enphase Energy Inc.
Allstate Corp.
Capital One Financial Corp.
Dow Inc.
MSCI Inc. Class A
Kinder Morgan Inc.
Carrier Global Corp.
Charter Communications Inc. Class A
Hilton Worldwide Holdings Inc.
Cummins Inc.
Waste Connections Inc.
PG&E Corp.
Hershey Co.
Consolidated Edison Inc.
Nucor Corp.
IDEXX Laboratories Inc.
Block Inc.
Electronic Arts Inc.
Workday Inc. Class A
Ameriprise Financial Inc.
Bank of New York Mellon Corp.
Keurig Dr Pepper Inc.
Otis Worldwide Corp.
TransDigm Group Inc.
Fortinet Inc.
Kraft Heinz Co.
Mettler-Toledo International Inc.
Halliburton Co.
AMETEK Inc.
Illumina Inc.
Marvell Technology Inc.
CoStar Group Inc.
Welltower Inc.
PACCAR Inc.
DuPont de Nemours Inc.
Airbnb Inc. Class A
Public Service Enterprise Group Inc.
Keysight Technologies Inc.
ResMed Inc.
SBA Communications Corp. Class A
KKR & Co. Inc.
Dollar Tree Inc.
WEC Energy Group Inc.
Rockwell Automation Inc.
Baker Hughes Co. Class A
PPG Industries Inc.
Cognizant Technology Solutions Corp. Class A
ONEOK Inc.
Alnylam Pharmaceuticals Inc.
Eversource Energy
Digital Realty Trust Inc.
Kroger Co.
VMware Inc. Class A
Old Dominion Freight Line Inc.
Constellation Energy Corp.
Arista Networks Inc.
American Water Works Co. Inc.
DR Horton Inc.
Verisk Analytics Inc. Class A
AmerisourceBergen Corp.
VICI Properties Inc.
Fastenal Co.
ON Semiconductor Corp.
Zimmer Biomet Holdings Inc.
International Flavors & Fragrances Inc.
Discover Financial Services
Ferguson plc
Republic Services Inc. Class A
Willis Towers Watson plc
Copart Inc.
Horizon Therapeutics plc
Walgreens Boots Alliance Inc.
Baxter International Inc.
Global Payments Inc.
Albemarle Corp.
WW Grainger Inc.
Aptiv plc
Gartner Inc.
M&T Bank Corp.
Tractor Supply Co.
United Rentals Inc.
Genuine Parts Co.
T. Rowe Price Group Inc.
HP Inc.
Corning Inc.
Edison International
CDW Corp./DE
Nasdaq Inc.
Hartford Financial Services Group Inc.
Diamondback Energy Inc.
Ulta Beauty Inc.
Alexandria Real Estate Equities Inc.
Equifax Inc.
CBRE Group Inc. Class A
Ameren Corp.
Entergy Corp.
Weyerhaeuser Co.
FirstEnergy Corp.
Fortive Corp.
Veeva Systems Inc. Class A
Crowdstrike Holdings Inc. Class A
AvalonBay Communities Inc.
Fifth Third Bancorp
eBay Inc.
First Republic Bank/CA
Vulcan Materials Co.
Arch Capital Group Ltd.
Apollo Global Management LLC
LyondellBasell Industries NV Class A
Lennar Corp. Class A
Equity Residential
Ingersoll Rand Inc.
Delta Air Lines Inc.
ANSYS Inc.
Martin Marietta Materials Inc.
Laboratory Corp. of America Holdings
McCormick & Co. Inc./MD
Warner Bros Discovery Inc.
Raymond James Financial Inc.
Hewlett Packard Enterprise Co.
Principal Financial Group Inc.
Insulet Corp.
PPL Corp.
Quanta Services Inc.
Waters Corp.
Brown-Forman Corp. Class B
Huntington Bancshares Inc./OH
Regions Financial Corp.
Cardinal Health Inc.
Southwest Airlines Co.
Trade Desk Inc. Class A
Xylem Inc./NY
State Street Corp.
Extra Space Storage Inc.
Church & Dwight Co. Inc.
Citizens Financial Group Inc.
DTE Energy Co.
Datadog Inc. Class A
Molina Healthcare Inc.
BioMarin Pharmaceutical Inc.
AES Corp.
Atlassian Corp. Ltd. Class A
Dover Corp.
CenterPoint Energy Inc.
Teledyne Technologies Inc.
Conagra Brands Inc.
VeriSign Inc.
STERIS plc
Coterra Energy Inc.
Hologic Inc.
CMS Energy Corp.
Kellogg Co.
Mid-America Apartment Communities Inc.
Invitation Homes Inc.
Tyson Foods Inc. Class A
Ventas Inc.
EPAM Systems Inc.
Seagen Inc.
Quest Diagnostics Inc.
PerkinElmer Inc.
Sun Communities Inc.
Northern Trust Corp.
Take-Two Interactive Software Inc.
West Pharmaceutical Services Inc.
Clorox Co.
Wabtec Corp.
IDEX Corp.
Marathon Oil Corp.
Darden Restaurants Inc.
Markel Corp.
CF Industries Holdings Inc.
Omnicom Group Inc.
Targa Resources Corp.
Las Vegas Sands Corp.
Expeditors International of Washington Inc.
LPL Financial Holdings Inc.
Cooper Cos. Inc.
Steel Dynamics Inc.
WP Carey Inc.
KeyCorp
Best Buy Co. Inc.
Berkshire Hathaway Inc. Class A
Cincinnati Financial Corp.
J M Smucker Co.
Ball Corp.
Paycom Software Inc.
Broadridge Financial Solutions Inc.
Monolithic Power Systems Inc.
Atmos Energy Corp.
FMC Corp.
Align Technology Inc.
FactSet Research Systems Inc.
Incyte Corp.
Jacobs Solutions Inc.
First Solar Inc.
Etsy Inc.
APA Corp.
Bunge Ltd.
Fair Isaac Corp.
Mosaic Co.
Royalty Pharma plc Class A
Textron Inc.
Synchrony Financial
Avery Dennison Corp.
Howmet Aerospace Inc.
Skyworks Solutions Inc.
Iron Mountain Inc.

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Not by that much. The US is about 70% of the msci world index. We canadian have a harder decision with home bias due to withholding tax. We are 2.5-3% of the index but hold 25-40 Canadian stocks

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.....why not just buy the MSCI World index....?

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The link you provided states it is 66% invested in North America and appears to hold a bunch of funds/bonds/etc. I'm not digging any further but it's likely it holds a substantial amount of S&P 500, just in pieces of other assets it holds. An example of a much simpler competitive product is VASGX which underperforms S&P but because it's been strong in this period - the point being some balance between bonds and non-US stocks gives a blend of strong performance over time. For instance it's biggest holding is EDMU which has Apple, Microsoft, etc, i.e. key components of the S&P 500. A scan of the holdings makes it seem like it's a lot more complicated than a simple index fund for a lot of reasons (ESG, currency hedges, bond mixes, etc.)

Certainly if you choose to go for a US-tilt or more stock (while 80/20 is aggressive many young people simply forego bonds completely) or you want more exposure for less fees, it's a fine idea, but if you have a target in mind you may have to understand a bit how your investment is spread and what mix you want in the end. It doesn't have to be complicated, simply you always want to understand and trust your investments are what you want in order to hold them through poor periods.

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That 600$ you would have also have made if you just had put it into a msci world or S&P500 but like that it was definite more fun I would say.

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Something akin to MSCI World or FTSE All world most like. First does not contain emerging markets, second does.

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I’d look for an index fund that avoids most of the countries you are trying to avoid. For example a lot of people hate on the TSP I fund which tracks the MSCI EAFE index but legislators voted keep it instead of a more globally diverse index because it has no China, Russia, etc. I’m okay with it. Vanguard equivalent would be VTMNX. It still holds 4000 plus holdings and ER is .05.

Developed Markets countries in the MSCI EAFE Index include: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the UK.

Performance wise it has actually slightly outperformed VTIAX since inception because it appears emerging markets have had more of a drag on performance and hedging towards developed tends to favor more value companies than the small and mid cap growth in EM.

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Buy some bbby shares tomorrow if u want to have a good lose/win ratio

NO FINANCIAL ADVICE and only if u have big ballz

Otherwise play it safe and invest in (aristocrat) dividend stocks like mcdonalds realty income pepsico procter gamble or growth/value stocks like shop apotheke europe starbucks etc. Just some of my fav‘s atm I dont really like ETFs like Msci World / S&P500

Make sure to make your own dd on those before you buy and never trust strangers on financial decisions!

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Very helpful, thank you. To be honest my idea was just to get 1 index ETF (such as MSCI World), and 1 bond. I am not in the US so I don't want to be too US heavy. What is the reason you go for multiple indexes?

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Do you have any examples of this? I hardly even seen anyone mentioned any companies today, like outside of my MSCI question.

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Then use a fund that tracks MSCI developed where South Korea is considered emerging.

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Msci China?

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With a 10-20 tear time frame there is no hurry. Follow "Global Clean Energy, MSCI World Materials, MSCI World Energy, Stoxx Europe Strong Growth 20" (etc) for the next few months, see how they react to current times, experiment with combinations of them on paper, and eventually pick what you want.

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> The regional Stoxx Europe 600 added 0.5 per cent, taking its gains for 2023 to 6 per cent, while London’s FTSE 100 rose 0.2 per cent, close to an all-time high. US markets are closed for the Martin Luther King Jr holiday, after Wall Street’s blue-chip S&P 500 notched its largest weekly gain in two months on Friday. > > European stocks in particular have benefited from signs of slowing price growth: the roughly 19 per cent outperformance of the MSCI Europe index relative to the MSCI US index in dollar terms over the past 90 days marks the highest return in more than 30 years, according to analysts at Morgan Stanley. > > “This does not necessarily signal the start of a multi-year period of European outperformance,” the US bank said in a note, “however, we think there is a good chance that it marks the end of Europe’s persistent, structural underperformance post the [great financial crisis]”.

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like this? https://www.ssga.com/lu/en_gb/institutional/etfs/funds/spdr-msci-acwi-ucits-etf-spyy-gy

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Hi, I am new to investing and looking for a way to invest an amount of 20K.

For 10-20 years (possibly selling something in between on a bull run) and compounding over the years.

I consider buying the ETFs

S&P500, NASDAQ, MSCI World Health, FTSE All-World USD

so not 10+ ETFs but these 4 maybe one of these:

Global Clean Energy, MSCI World Materials, MSCI World Energy, Stoxx Europe Strong Growth 20

There are so many ETFs that it is hard to find the right one as a beginner.

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Imagine doing DCA into MSCI world img

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Everyone with ETFs like "MSCI World" is

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Inception dates, especially on the ETF share classes, are just an accident of history and don't tell you anything about whether the long term expected return of the CRSP total stock market index or the S&P 500 is higher. I believe if you look at longer term returns you will find them to be quite close.

As to VXUS, that's the separate issue of whether and how much you invest in international stocks. Data further back such as the MSCI EAFE Index since 1970 suggests that over the longer term, US and international stocks swap periods of outperformance, it's just that international stocks have been in hibernation for a while including the whole period that VXUS has existed.

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>and the MSCI EAFE.

This would mean you'd be ignoring emerging ex-US markets and Canada. So there's room for improvement on that, but not terrible.

>10% in a portfolio of low-cost real estate index funds that track broad real estate market indexes such as the Dow Jones U.S. Select REIT Index.

May already be included in part 1. Why overweight REITs?

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>It is too risky to have 80% of my money in well diversified ETFs? (msci world and emerging markets).

"Risk" in this context is defined in two ways: 1) withdrawal risk, and 2) catastrophic failure risk.

The whole point of index funds is to reduce #2 to zero - after all, if the entire stock market goes to zero, likely so will the dollar and anything denominated in it, so bonds, real estate, etc - so all you're dealing with is withdrawal risk. You can run through portfolio scenarios through firecalc.com, over a long enough period and with a low enough withdrawal rate, the higher long term rate of return of a 100% stock portfolio can sustain a portfolio indefinitely and provide better returns than any mix of stocks and bonds.

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Which is not true. The Vanguard FTSE All-World Index is even more diversified as well as the MSCI ACWI which both include Emerging Markets.

EU here, just in case you’re anywhere else?

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The most diversified (and boring) would be MSCI World.

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Simply not true, at least for the 2x msci usa I own.

When you buy the dips the 2x leverage kicks even more. I usually hold 10% cash to buy a portion when the index drops 10%, then another at -20% and -30%... At least that's the plan. Biggest risk is the market going sideways for a long time

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europoors are even worse tho

they just invest in dividends and DCA into MSCI world ETF img

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Are you not taking advantage of the TSP match? This is a huge mistake if that is the case (the match is like automatic returns on your money, take advantage of that).

You can easily do a three fund portfolio with the TSP.

https://www.bogleheads.org/wiki/Three-fund_portfolio

Copied from TSP website:

The C Fund's investment objective is to match the performance of the Standard and Poor's 500 (S&P 500) Index, a broad market index made up of stocks of 500 large to medium-sized U.S. companies.

The S Fund's investment objective is to match the performance of the Dow Jones U.S. Completion Total Stock Market Index, a broad market index made up of stocks of small-to-medium U.S. companies not included in the S&P 500 Index.

The I Fund's investment objective is to match the performance of the MSCI EAFE (Europe, Australasia, Far East) Index.

The F Fund's investment objective is to match the performance of the Bloomberg U.S. Aggregate Bond Index, a broad index representing the U.S. bond market.

>The problem is I would like to keep all my money in the three fund portfolio, but I am not sure who manages the TSP funds and how profitable they are.

Which company manages the TSP funds is less important than which indexes they track. All the indexes they track are well known indexes. I believe Blackrock and State Street manage most of the TSP funds, both are well known money managers.

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eToro has a very limited amount of UCITS ETFs, I recall that it only has London listed ones so searching for ones ending on .L results in:

iShares:

  • MSCI Europe
  • FTSE 100
  • FTSE 250
  • MSCI World
  • S&P 500
  • Asia Pacific Dividend
  • $ Corp Bond
  • JPM local gov. bond
  • MSCI Emerging marktes
  • UK property
  • MSCI japan EUR hedged
  • Gold producers
  • MSCI Taiwan
  • AEX
  • MSCI AC Far east ex japan
  • MSCI Brazil

SPDR:

  • S&P 500
  • US dividend aristocrats

Xtrackers:

  • MSCI India swap
  • Nikkei 225
  • MSCI Europe utilities
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In general you would want to invest in a low-cost ( < 0.5% annual costs) passive mutual fund (a.k.a. index fund) or an ETF (exchange traded fund) that invests in a worldwide index like the MSCI .

However, in Europe each country has its quirks. For example, in my country, the Netherlands, you are not taxed differently on ETFs versus mutual founds, but I know that in some other countries ETFs should be avoided because they are taxed heavily.

So while I'd want you to invest in 1000+ companies in one easy step by investing in one mutual fund or ETF, you should first find out how investments are taxed in your country.

Sometimes it can help to go to the local public library and loop at the personal finance and investing books that they have. Read them while in the library or browse them and then buy the 1-3 books that seem the most informative.

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Invest it all on aristocrat dividend stocks like realty income, pepsico, mcdonalds or even an etf like msci world.

SIKE

YOLO IT ALL ON BoBBY EITHER CALLS OR PUTS OTHERWISE SMALL PP AND NOT REGARDED

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I'm a passive ETF-Investor mainly focused on growth (an "MSCI World" ETF is my biggest position)

I do however have some dividend positions to make use of the fact that in Germany I do not have to pay taxes on the first €1k of capital gains every year.

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Yeah, but why gamble on stock that you hope will go up when you can get 9% on avergae with s&p 500 index funds (dividend reinvested) or msci world (7% average p.a.). And that not maybe but pretty sure

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Thanks. I agree with all those points.

As a European I do feel quite wary of currency risk, because while I agree that in the long run, it should all balance out, it's just impossible to define what long run is, and there is a definite possibility of building a portfolio during a period of currency weakness and then withdrawing during a period of strength, which could have a very sizeable effect on performance. I know it could go the other way, but, in my mind, I'd prefer to take it off the table. At least to a large degree.

This matters a lot less if the majority of your portfolio is still home country, which MSCI World would be for an American, but not for me.

Anyway, I've digressed. I do agree with Bogle's points. The recent energy crisis drives that home, because where I live (an EU country), windfall taxes are being imposed on energy companies, and this may be expanded to banks. Things like this a a very strong disincentive not to invest in local market because the government may swoop in and claim your gains when they arrive. I don't think it would happen in the US

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The article doesn’t seem to provide proof and is behind a paywall. It’s just saying that a) China pressured MSCI and b) MSCI added China to the index

Either way, as I showed earlier, China is already being heavily underweighted in the index relative to its true market cap so I don’t even see why this is an issue.

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> MSCI increased China’s share of the Asian indices due to pressure from the Chinese Communist Party.

Provide proof of this. China currently trades below what its market cap weight would be in stock market index funds. Its stock market cap (Shanghai + Shenzhen + Hong Kong) is 1/3 of the US market cap but it makes up 1/20 of the US’s share in VT.

https://www.statista.com/statistics/270126/largest-stock-exchange-operators-by-market-capitalization-of-listed-companies/

https://investor.vanguard.com/investment-products/mutual-funds/profile/vtwax#portfolio-composition

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it simply aims to double the daily performance of the MSCI Brazil 25/50 Index, which is large and mid cap companies in Brazil. They use leveraged derivatives such as swaps and futures to achieve this, and rebalance daily.

It's highly risky and should not be used if you don't know exactly what you're doing.

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>MSCI increased China's share of the Asian indices due to pressure from the Chinese Communist Party.

Was that in one of the links you shared or do you have a source confirming it? If that is the case, I might use a FTSE index such as in VXUS or VWO which are cap weighted or a global all cap free float adjusted fund like VT or some other fund which doesn’t use MSCI’s index

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I'm worried about reverse-ESG. The country allocations of international funds are influenced by politics. The Chinese Communist Party leaned on MSCI to increase China's allocation in its Asia indices, diverting lots of passive American capital to China.

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The allocations of stock within, say, the US total stock market fund, are determined by the market cap of the underlying companies. But the allocation of the international funds, particularly the country-wise allocation, is not determined by the market. MSCI increased China's share of the Asian indices due to pressure from the Chinese Communist Party. I'm not just reacting to the news (note that my concern began almost a year ago and I haven't reacted yet; I have more important things to worry about in the short term). I am, however, concerned about political manipulation of my asset allocation and looking to avoid it.

Diversifying with a developed market fund might be a simple compromise here. At least I'd get some international exposure. There are also some emerging markets ex-China funds I can use. I guess this gets me halfway to just going with Option 1 and rebalancing once a year.

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Yes, China makes up a noticeable part of your portfolio (about the same amount as Apple) but their earnings are deeply discounted. That’s because everyone knows about its risks and the market has priced them in. This is partly why China’s stocks are about 2/3 the price of US stocks, and Russia’s were about the cheapest in the world before they were de-listed.

Emerging markets’ discount tends to deliver a long-term risk premium. Among the special risks they have are higher sovereign and geopolitical risks which can occasionally result in “left tail” catastrophic losses.

My first suggestion would be to follow the mantra of “tune out the noise”. Don’t let your concerns or emotions over what you read in the news dictate your investing decisions and just let the market price stocks for you based on their known risks and anticipated returns. If you don’t have the tolerance for those catastrophic risks of emerging markets, rather than try to construct your own country exposures, I might suggest just dropping emerging markets and using only a developed markets fund like VEA for international. Forgoing all international stocks seems like a drastic response and would result in an unnecessary lack of diversification in response to concerns about one country.

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Yeah, but in general I’m careful in using averages to analyze investments/markets. Even tho everything “rhymes”, things can get stretched. Like for the last 50 days, the MSCI World Index ex-US (ROW) has outperformed by SPX by 4 standard deviations (13.7%) using data from 2012 to current. Mean reversion coming, or are things different this time?

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Charles Schwab put out something similar:

"We project U.S. large-company stocks to return 6.1% annually over the next 10 years, compared with 7.6% for international large-company stocks. This is mainly due to differences in valuations between U.S. stocks (as measured by the S&P 500 index) and international stocks (as measured by MSCI EAFE index)."

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It depends on what your definition of 'Global' is. MSCI World has World in the name but in practice it only covers developed markets.

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Scv is even more prevalent outside of us, I think msci world small cap value index returned 10% per year since 1998, which is very very good performance. But that index is only developed markets only, and there's no etf available

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Lobbying spending in an interesting "alternative" factor, and I would recommend you read Kai Wu's papers on the subject if you want to learn more, but these backtests look a bit suspicious.

Since March 2009 (coincidentally right at the bottom of the GFC), VTI has returned 14.81% with a Sharpe of 0.94. That makes the returns of top lobbying spenders and top government contract recipitients look pretty reasonable. I'm guessing lobbying spenders represent a pretty diverse basket of industries whereas govt contract recipients should mostly be aerospace and defense firms, which makes sense because that strategy almost perfectly matches the returns of ITA over the backtest (no guarantee that they will continue to outperform, just that it makes sense looking at that industry's historical performance).

Where things get weird is the lobbying spending growth strategy. 30% CAGR from a long only, unlevered strategy over a time period where the market returned half of that just screams extreme overfitting or some kind of look ahead bias.

And as for the banks, that hasn't been a great place to invest ever since the GFC. The bailouts may have saved some firms from bankruptcy, but they didn't create insane growth for shareholders. https://www.msci.com/www/fact-sheet/msci-usa-financials-index/08316676

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>MSCI World Islamic UCITS ETF

But the one he linked to ISUS has had a strong 5 year performance of 41.87 % growth while ISWD only performed 28.85%. Its not bad that it is heavy on Microsoft. MSFT is really one of the strongest during bad time, reccesion etc in the tech sectore.

Its future with Dall-E, Vall-E, GPT3/4 incorporated to MS 360 and Azure, Cloud segment, Cloud gaming and inhouse designed Chips for their Azure servers and INVAS (Military Argumented/Mixed reality Googles) looks really really strong + it pays dividend while stil having super financials. Microsoft is really becoming a mamoth in the tech world.

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That is one of the weirdest funds I have ever seen. It purposefully excludes companies involved in.. cinema, hotels and music?

The fee is somewhat decent (0.3%) and the fund is broad (even though it only has 119 holdings and excludes pretty much the entire financial sector). It also has an absurd weight towards Microsoft (19%), which is somehow compliant with Sharia while Alphabet and Apple isn't.

If it is truly important for you to have a "Sharia compliant fund", then this is probably a decent choice. However, I would probably recommend iShares MSCI World Islamic UCITS ETF. Not only is it a good idea to have international exposure, but it also almost triples the amount of companies in the fund (353). https://www.ishares.com/uk/individual/en/products/251394/

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If you want to have an all in One etf All-world would be a good choice but not perfect since it doesnt cover small caps.

Maybe take a look at the SPDR MSCI ACWI IMI this one is very similar to the All-World but on top has small caps included.

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Thank you.

I read the first two links and it confirms that iShares MSCI ACWI (Acc) is the best choice for me with TER 0.20% p.a (I am in Germany). The Vanguard one has TER of 0.22%.

Thank you for the informative pages. I think I am decided now.

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Thank you for the advinces. It was the answer I needed.

Among the ones I listed iShares MSCI ACWI UCITS ETF (Acc) is the one for me then.

Now, how I should make the ETF replacement. Sell all the SRI ETF at once and but iShares ACWI at once? Or hold the money and DCA?

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FTSE All-World aka the holy grail. It's my core invest, but I don't save into that anymore. Only MSCI World Quality and Momentum ETFs besides stocks.

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I am also from europe. I use ZPRV which tracks MSCI US Small Cap Value Weighted Index.

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Finished last year -13.3% YTD, looking to do as little as possible this year. Much of the same portfolio I had for the backhalf of last year. 25yo, 40% personal savings rate. This is across a taxable, Roth and Traditional IRA (after having to roll over 401k last year)

14% - IGV

13% - QQQE

11% - RSP

7% - NOW

6% - LULU, DDOG, MA

5% - AMZN, HUBS, GOOG, FND

4% - RHS, SNPS, MSCI, CMG

3% - TXRH

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Invest in both BRK and a broad index fund, then why not do just that? You can diversify your portfolio by investing in multiple asset classes (or indexes) and might have the best of both worlds.

Diversifying your investments can reduce risk since different assets will perform differently depending on market conditions, thus reducing the volatility of your overall portfolio. For example, you could choose 50% BRK, 25% MSCI World Index Fund, 25% other Index Funds or even some individual stocks.

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You could reduce your exposure to american markets, if youre worried about the stability of america long term. Get some MSCI europe or emerging market or something like that.

But if youre just worried about the debt ceiling thing, then dont. It happens almost every year and any volatlity in the market won't make a difference 30 years later, when you actually retire.

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People who consider BRK like a fund misunderstand the main difference: a fund is valued only according to the weight of the underlying stock. A MSCI etf moves in strict accordance to the weighted movement of the companies that are in the MSCI.

BRK, on the other hand, is freely traded according to how people feel about it. Because people have high expectations of Buffet, they add a premium. I'm troubled times, they see BRK as a safe haven, so they like to pay more. This is market sentiment towards BRK which is decoupled from the movement of the underlying companies.

Also, BRK never pays dividends, a lot of ETFs do. That needs to be factored into comparisons.

I am not saying BRK is a bad investment. I just say that it should not be treated like an ETF, because it has very different pricing mechanisms.

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MSCI World holds 1546 companies from around the globe. BRK consists of 65 companies which AFAIK are almost all US based (and of which AAPL is the biggest chunk by far). So in that regard they really are not comparable at all. One could argue that despite the perceived image of Berkshire, it has a much higher risk associated with it than a broad index fund. That doesn’t necessarily make it a better of worse pick, but it is something to keep in mind. IMO go with BRK if you’ve done the research and know their holdings and investment philosophy. If on the other hand you just want a reasonable safe way to invest your money without having to do a lot of research or keep track of the market, a broad index fund might be a better pick.

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Nope, as the other commenters explained, it's price weighted not market cap weighted. So stocks who trade at a higher stock price (which means absolutely nothing about how much the company is worth as a whole) have a higher weight.

The S&P 500, on the other hand, has AAPL at 5% because AAPL's market cap is 5% of the total market cap of the biggest 500 companies in the US stock market.

In academic literature, as a result, they always use the S&P 500 or NASDAQ or other market cap weighted indices like those from MSCI or FTSE. The Dow is a historical relic, and it did a decent job of capturing the overall trends in the US stock market (especially in industrial companies). But nobody seriously uses it anymore.

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Which MSCI Index?

What's Amanda's benchmark?

You're comparing apples to oranges here.

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  1. You can hedge currency risk.
  2. Currency risk can reduce foreign equity vol if the value of those foreign currencies vs your local currency is negatively correlated to market risk, though this has admittedly never been the case with USD.
  3. Even unhedged global portfolios tend to have less volatility than local ones. See MSCI USA vs MSCI World or MSCI ACWI.
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What are you talking about? How else can you explaine ESG premium? High ESG companies outperformed overall market in the last 12 years MSCi USA ESG.

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Scott (Amerprise) - 40 equites 60 bonds - try to match the MSCI index.

Amanda (Chase) - Super heavy into tech. Lots of QQQ exposure. 80 equities 20 bonds.

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What if I divided the haystack into global cyclicals and global defensive sectors?That makes just as much sense as US vs ex-US. The MSCI indexes for those only go back to 2000, but defensive sectors have beaten cyclical sectors with less risk since that date. Would you go all in on defensive sectors? It's just picking a haystack after all. Active management, but the good kind, right?

And I don't see how there isn't one giant worldwide haystack. What makes Toyota, RBC and BP soooo different from GM, BofA and Exxon?

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First sane response I’ve read. Scott was heavy in bonds with a duration of 4. He didn’t get pounded as rates rose, but my point to him was why hold them at all? I’ll go buy ibonds and super short duration floating rates to try to fight inflation. … and yes I generated negative alpha against SPY, which is how I measure myself. Both Amanda and Scott could only give me their numbers against the MSCI index they were benching against

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Start with a good stable ETF. And if you're really adamant on options write covered calls on it. I recommend msci world or spy. They have liquid option chains.

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Sorry I’m not a regular poster, so I couldn’t figure out how to add my text to the first post. I’m a 36 y/o (MBA, BSB in accounting and finance) with a 72 y/o father. Maybe the PSA here is to not let your parents get screwed? Or to know we can probably do just as good a job without paying manager’s fees?

In 2019 I sat down with my father and reviewed his portfolios. I was not happy. I went through and drafted notes and sat with each of them to review our strategies.

Scott (Amerprise) - 40 equites 60 bonds - try to match the MSCI index.

Amanda (Chase) - Super heavy into tech. Lots of QQQ exposure. 80 equities 20 bonds.

Upon interviewing both of them, Amanda explained very well her rationale. While I wasn’t in 100% agreement I understood her strategy and the holding followed that strategy Scott on the other hand could not explain to me why we held a single position we were holding. You might recall even at that time real yields were negative. It made no sense to me why we would invest in something that was yielding below inflation. Even cash made more sense. I became livid with him and it got pretty heated. As a result of these meetings my father gave me authority to access/trade a brokerage account and I set about reallocating the portfolio.

For the next 3 years I operated his account with a fairly risk adverse strategy, covered calls, selling cash secured puts, and just general passive index funds.

As you can see from the results in the image, I beat both managers in total return and given the nature and of their holdings (Amanda much more risk seeking) I am confident I beat them adjusted for risk.

Scott has been fired. My father signed authority to me on the chase accounts and Amanda and I are working together on those holding.

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Either MSCI ACWI or FTSE All World.

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Prioritize your match first, then max your IRA and HSA (if you qualify), and then put the rest into your 401k.

29-35 basis points isn't good but it isn't awful either. A cheap index ETF in a taxable account will probably cost at least that much in expenses plus taxes. I would not use a taxable account unless you are maxing out your 401k or have some other non-retirement expense that you're saving for.

Run a three-fund portfolio with these:

  • Total US bond index: BlackRock US Debt Index ER: 0.32%

  • Total US stock market index: BlackRock Russell 3000 Index Fund ER: 0.29%

  • Total international stock market index: BlackRock MSCI ACWI ex US Index ER: 0.35%

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Recent Tweets
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$MSCI seems worthy of a deep-dive. I had questions about the valuation, but @TopCornerInvest talks about it in his write-up. Cash conversion section was my favorite.
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Over the past decade, $MSCI has increased free cash flow at 12% annually and bought back 34% of shares outstanding Not a lot of companies with a similar track record
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My write-up on $MSCI Digging into the numbers to understand why MSCI has compounded at 30% annually over the past decade: - FCF per share growth - Return on capital - Cash conversion - Current valuation This is a quality company. Enjoy! https://t.co/vUfgAVIDex
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$MSCI bought back more stock in Q3 2022 than all of 2021 (when shares were arguably super overvalued). Even though it's still expensive, good to see management pausing buybacks when times are too good https://t.co/JT4NTpH6x6
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$MSCI Top analyst price target for next week>💸💰~ https://t.co/1t1dyrFdzF
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I think market is about to leg up much higher, given risk apetite is growing which you can see on $MSCI, $DXY getting weaker, $VIX is acting like its 2001... its about time
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If you comp $MSCI to software cos on retention and growth, the multiple doesn't make any sense.
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$MSCI starting to look interesting here https://t.co/XtzHePrOrI
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$xau vs $msci it looks the price is still hesitating on the longer term while momentum already made a clear choice ! https://t.co/nOZERg1RzW
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A few ‘financial infrastructure’ companies for your watchlist: payments: $MA, $V debt ratings: $MCO, $SPGI consumer ratings: $FICO credit union processing: $JKHY market data: $FDS indexes: $MSCI specialty exchanges: $OTCM, $MKTX payroll: $ADP, $PAYX All have 5 yr ROICs > 20%
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$MSCI - Last six months, 2 option alerts peaked above 100% after they were triggered by the algo https://t.co/TzGdrO5Csl https://t.co/o5bSa3BVOA
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$MSCI is still pretty expensive but the fact that a fairly mature company was trading at 60x FCF in 2021 is pretty crazy https://t.co/X5DR0FCQW4
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