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MSCI Inc.

MSCINYSE

416.90

USD
-3.86
(-0.92%)
After Hours Market
43.24P/E
33Forward P/E
2.16P/E to S&P500
33.562BMarket CAP
0.99%Div Yield
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>https://www.ishares.com/us/products/239650/ishares-msci-germany-etf

Yeah, that's what google recommended too, alongside FLGR

I believe in the German economy (long-term) and would like to put more emphasis on it in my portfolio.

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This is from a quick internet search: https://www.ishares.com/us/products/239650/ishares-msci-germany-etf

Mind if I ask why you're looking at one particular country?

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Oh totally, the MSCI ratings and other rating agencies have been in trouble since essentially companies have been 'greenwashing' their practices and successfully gaming the system to claim they have good ESG/CSR practices.

Which is why some researchers have been using multifaceted approaches, include using AI to filter through company disclosures to better identify companies that are genuinely making attempts to improve their ESG.

They key difference between ESG and previous attempts is that ESG is focused on ensuring companies can begin to improve in this area without sacrificing returns. Essentially the emerging theory is that when a company focuses on the materiality of a particular ESG factor to their business, they can make significant improvements and actually improve returns.

Obviously still a lot of research to be done.

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Perhaps keep it in your portfolio to remind yourself that you are incapable of making good financial decisions in stocks, and buy global stock ETFs like iShares msci acwi or vanguard ftse all world instead for the remainder of your working life and still retire with a good amount of money.

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XEF which is an MSCI EAFE index fund had a PE ratio of like 11 now. That entire index is now in the value range.

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Honestly, I just don't care what John Bogle thought of international in the slightest. He was a genius, but he's dead. We can't hold to what he said like it's gospel.

Modern Boglehead philosophy leans towards global market weight.

That being said, it's never an either/or thing. You always have options:

The statement that there are "no promising companies outside of the US" is delusional.

Most concerns about international only apply to emerging markets. I haven't yet heard a great argument why someone wouldn't at least get some VTMGX.

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> judging by the number of downvotes on my post, there are a lot of people on this subreddit who never took science classes in school

I think it's you my friend, I've undertaken a science education up to MSci level and am regular discussion with working scientists, you are mistaken, I suggest you do some further research and listen to actual scientists not politicians (eg. Andrew Yang).

> All forms of energy production require CO2 emissions somewhere in the process, but nuclear is by far the best option. After the initial outlays of mining, construction, etc., nuclear plants produce in orders of magnitude more energy and with the least amount of ongoing CO2 emissions.

They are a good option but not the only option.

> Solar plants are natural gas plants. The models that show these things produce far less CO2 do not take into account the pollution from the natural gas (or in some cases coal) facilities that back these things up almost 50% of the time, depending on where they are located.

They absolutely do, and they are an improvement on running the gas plants 24/7 in terms of CO2 emissions. In the medium term storage solutions will render this point irrelevant.

> Even if we replaced every fossil fuel plant in the US with solar, wind, etc. and shut down every reactor, the global temperature would barely move an inch, and would likely go up (the rest of the world isn't going to follow suit).

Given the US is one of the largest emmitters it absolutely would, the US could then export the technology it has developed to the rest of the world helping them transition and making absolute bank.

> Andrew Yang told Democrats this during a debate, but no one wanted to hear it. It isn't about the science anymore, it is about getting government handouts and indulging in leftist fantasies about saving the world.

Again stop listening to politicians, I urge you to read the IPCC reports (headed by working scientists).

> We need cheap, abundant energy now--while we expand nuclear, we need to get the fossil plants back online, or we will have millions of people thrown into poverty, blackouts everywhere, riots, and even famines.

Dependence on fossil fuels will always end in tears.

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The cleanest dataset is the MSCI EAFE Index, which Morgan Stanley has maintained since about 1970. That is the longest running actual index for the ex-US market that I'm aware of. But that 50 year period still isn't great, in that it doesn't cover the Great Depression or WWII.

To get estimates going further back, you'll need to consult the academic literature. The Yale International Center for Finance has some public datasets and produces good papers in this area.

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> That is exactly why the US will keep outperforming.

what do you mean 'keep outperforming'?

>on a rolling ten-year return basis between December 31, 1969 and June 30, 2022, the S&P 500 outperformed the MSCI EAFE Index only 55% of the time.

https://tweedy.com/resources/library_docs/papers/Dichotomy%20Btwn%20US%20and%20Non-US%20June2022%20Fund.pdf

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Take another 3850 pounds and invest in Msci all world from now on

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I see your point. Currently I have about 2.5k in the NASDAQ100. Would you say that holding it and pumping ~50€ a month into it while buying about 1k of MSCI Islamic World (which has 359 stocks) would be a good way for a longer term? After university I’d continue investing that way but with more money

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I had a look at the MSCI Islamic World ETF. JnJ being the top position is at the very least..questionable…I don’t see many alternatives and I feel like the NASDAQ100 is the closest thing to a morally appropriate investment for me

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  1. Collin’s US only approach really isn’t even appropriate for Americans (it’s easily the most criticized part of his book). He’s an engaging writer but his investment advice is quite sub-par in that respect.

  2. Your overall plan looks fine. The expense ratios are uncomfortably high but that’s frequently the case with the funds available to investors outside the US and I don’t have any specific knowledge about the funds available in New Zealand to tell if you might have missed a better choice.

  3. Total world equity funds are going to behave extremely similarly to one another regardless of the underlying index tracked. I highly doubt that there are many investors who even know the practical difference between the MSCI and FTSE indices. What is relevant is the difference in expense ratio between 0.4% and 0.58%.

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The losses would be essentially from 3/22- current with a 10% loss, pivoting from VTSAX/ VTIAX to ITOT and IDEV. I was under the assumption that VTSAX follows CRSP US total market and ITOT is S and P total market. Also VTIAX is FTSE globall all cap ex US and IDEV is MSCI world ex us. I like the idea of lower expense ratios with iShares and pivoting to ETFs within a taxable account. Maybe I am overthinking things.

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You should not care about whether it has lost or gained since you bought it when making forward looking investment decisions - save for any tax implications (and since it appears you aren't not paying US taxes I can't really comment on those).

So if you want to move toward the MSCI-World allocation (which is a perfectly reasonable choice), then do it without regard for the loss.

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Problems with inverse ETFs:

  1. In the long term, the value of the S&P 500, MSCI World etc. grew, and probably!!! will keep growing

  2. Volatility drag

If the index would go 10% down on the 1.day, 15% down on the 2. day and 25% up on the 3.day, the normal ETF would have gained +-0.

The inverse ETF would have a slight loss (same as a leverage ETF).

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Thanks for the resources - that does seem to counter what I referenced in my post, at least comparing the S&P vs MSCI (if I'm understanding these correctly). From this standpoint you're absolutely right, 6 months, 1 month, 10 months, who knows.

If I can ask a followup question then, why is there such a large discrepancy between this and the trendlines I referenced? Is there really that much of a difference in how people calculate growth that can sway the trend that much? Or is there something else I'm missing?

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Fixed the VTI info, thanks for pointing out :) Was thinking of MSCI World probably.

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I would agree with this if not for ‘08. That was a US economic crater. Caused by the US housing market bubble killing the US consumer’s financial well-being. In the 2008 crash the S&P 500 was down 57% from high to low (1562 to 666). VTMGX (Vanguard’s developed markets index fund) was down 59% from high to low (16.79 to 6.82).

This seems like the exact situation that diversification is trying to prevent, but the world economy is so interconnected today that if the US as the largest economy takes a hit it’s dragging the rest of the world down with it.

International worked as a diversifier for most of the 20th century, but really since 1990 if you overlay a chart of the US market over the a developed markets fund (I’m looking at JP Morgan research which compares MSCI EAFE (developed markets ex US) to MSCI USA (page 47 in this PowerPoint https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/insights/market-insights/guide-to-the-markets/mi-guide-to-the-markets-us.pdf). Over the past 35 years international outperformed US for a 1.5 year period around 1993-1994 and a roughly 4 year period between 2003-2007. In exchange for these 5 years of hedging where you outperformed US by 36% and 64% you missed out on 3 periods of US outperformance of 99% between ‘88 and ‘92, 220% between ‘95 and ‘01 and 235% between 2010 and today.

Modern portfolio theory was developed in the 1950s and it worked when it was created, but over the past 35 years which is a pretty good sample size including international hasn’t been a hedge. A hedge would mean negative beta, when the US market goes down, international goes up and vice versa, but over this time period when the US market goes up, international has been going up but not by as much, and when the US market falls international falls by the same amount.

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Since the war pressuring EU economy in general, especially Poland and Germany. DE40 index and MSCI Eastern European ETF might be a good options.

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>VTSAX reflects what the US market is composed of.

VTSAX reflects an MSCI index of common stock, not the entire US market.

no private equity, no preferred stock, no master limited partnerships, no microcaps, and many listed small caps are excluded due to liquidity requirements.

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80% BLKRK R3000 Index

15% BR MSCI ACWI EX US

5% BR US Debt.

Roll it as soon as you leave.

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Thanks Ben! Interesting stuff.

I'd like to sprinkle in a few more perhabs less-significant but somewhat interesting points to think about when considering constructing your portfolio with home country bias:

  1. How small is your home market.

I live in Israel and we are only 0.2-0.3% of the global market. Actually even Japan, the 2nd largest market, is 'just' 6% of the global market.

So probably only US citizens 'can afford' to have 'a lot more' home bias.

  1. How much market concentration there is in your home country (and therefore also in its market-weighted indexes).

       As of 2015, the 10 largest companies in Israel's "Tel Aviv 100" index were staggering 57% of the index's market cap (!).
    
       For comaprison, the top 10 companies in the S&P500 at that time were 17%, and the top 10 companies in the MSCI All Country World were 8%.
    
  2. How diversified your home country industry-wise (i.e. the mining industry in Canada that was mentioned in the podcast...)

More interesting:

  1. I read one suggestion to, instead of using the home market (bias) to hedge against your home market/currency booming, to adjust your portfolio to hold more bonds/cash (in your home currency). That way you can still be 'fully globally-diversified' in the stock portion of your portfolio.

  2. There are special "synthetic products" that allow you to buy VT-like ETFs in local currency (without doing currency conversion) or even having to directly trade abroad. (The ETFs themselves not currency-hedged). Typically these products have higher fees, more tracking errors, and are somewhat riskier in the sense that you have to go through 1 more person on the way.

*. It's always good to keep in mind Japan (1991) / Island (2008) / Russia (2014-16) when thinking about home market bias :)

**. You rock man. I adore the way you put out your content and make it accessible, comprehendible and even entertaining.

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I mean, to be fair the S&P isn't a rule based index - the companies are selected by a comittee more or less following some rules. If you want a broad market index that isn't manuall stock picked, consider the MSCI USA, but it underperforms the S&P which either means the S&P comittee are great stock pickers, or that stocks go up because they are in the S&P, which is scary.

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iShares Core MSCI World, iShares MSCI World Small Cap and iShares Core MSCI EM will get you the same basket more or less.

https://www.indexfondsenvergelijken.nl/ will show you many alternatives as well.

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Vanguard only updates its allocations once a quarter, so I use ACWI instead as it is updated daily (go to Exposure Breakdowns and sort by Geography).

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A lot of comments about sp500, but what about MSCI World index? If we are talking about being sure, that's my way to go.

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I'm curious why you don't just buy the SPDR MSCI ACWI IMI ETF and move on? All this complexity must surely be worth eliminating with the 0.4 fee. Since you're buying in €, you can find it as IMIE on a number of EU exchanges.

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The fund size is abysmal, like 100M, ishares better come out with msci world small cap value weighted index fund, because that is what I wanted to invest in

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ETF's as my trackrecord is a consistent under performance. Better just buy msci world for 95% minimum.

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Currently I follow a three fund portfolio minus the bond fund, I will allocate to bonds when I am closer to retirement. Alternatively, some people like viewing their pension as a bond fund. If I was in your shoes I would go 100% stock funds in my 457 plan.

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

https://www.bogleheads.org/forum/viewtopic.php?t=329713

If this was my portfolio I would do:

75% TIAA-CREF Equity Index Fund - Institutional Class (This fund tracks the Russell 3000 index, which is a type of Total U.S. Stock Market Index and includes large, mid, and small caps).

25% TIAA-CREF International Equity Index Fund - Institutional Cl (tracks the MSCI EAFE Index, it covers developed international market stocks but not emerging markets).

Topic of international allocation:

https://www.reddit.com/r/Bogleheads/comments/r3jdhi/as_a_us_based_investor_what_percentage_of_your/

Topic of bonds:

https://www.bogleheads.org/forum/viewtopic.php?t=328019

Lesson I wish I would have learned sooner:

Which matters more for building wealth: Your saving rate or your investment returns?

https://www.getrichslowly.org/building-wealth/

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>for decades now you'd be worse of having invested in any international,

recently I found this chart from the investing firm Tweedy Browne. kinda mind-blowing:

>... as you can see in the chart below, on a rolling ten-year return basis between December 31, 1969 and March 31, 2022, the S&P 500 outperformed the MSCI EAFE Index only 54% of the time.

https://tweedy.com/resources/library_docs/papers/Dichotomy%20Btwn%20US%20and%20Non-US%20Mar2022.pdf

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> I dislike international funds a lot, but even I have 10% in them.

recently I found this chart from the investing firm Tweedy Browne. kinda mind-blowing:

>... as you can see in the chart below, on a rolling ten-year return basis between December 31, 1969 and March 31, 2022, the S&P 500 outperformed the MSCI EAFE Index only 54% of the time.

https://tweedy.com/resources/library_docs/papers/Dichotomy%20Btwn%20US%20and%20Non-US%20Mar2022.pdf

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I think SPY and VOO are not the same in this. There are various robo portfolio companies like Wealthfront and Betterment which do tax loss harvesting by rotating among very similar ETFs from different sponsors. This has been happening for years and there hasn’t been any pushback.

But beware with Vanguard, different classes of the same underlying fund may be considered similar, as they have mutual funds and ETF sharing assets, and possibly also Admiral vs regular shares.

If you really wanted to be safe, you could rotate from a SP500 fund to a similar large cap fund that doesn’t use a S&P index, e.g. a Vanguard or MSCI or iShares fund.

One interesting question is whether GOOG and GOOGL are considered the same or not.

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>Well vti has outperformed VT.

Past performance is not an indicator for future results. If you're chasing performance mine as well ditch index funds entirely and invest in stocks like Tesla.

>You can call this recency bias or home county bias or whatever.

I mean you're clearly utilizing recency bias by not recognizing the 2000s, 1970s, and 1980s where international outperformed the US (source).

>America is an economic powerhouse; and despite the news very stable

Ah, I believe this is what was said right before the recessions in 2008, 2020, etc. While you may be confident in your fortune-telling abilities, I'm not.

>Why do you think when you see vti/vxus portfolios they aren’t 50/50

Everyone's portfolios are different so I'm not sure what you're referencing here. The general recommendation here is to follow market caps of the US and international (so 60% US and 40% international and not a 50/50 split).

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Hello, I'm looking for some advice on how to plan my finances & investments in my current situation.

Some info as requested:

  • Personal: I'm 37 years old and have been living in Germany for the last 8 years. I'm relocating to Ireland for work (internal transfer) within the next 1-2 months.
  • Earnings: Employed by one of the global IT giants and making annually ~70k cash and ~30k in company stock, both after taxes.
    • Out of this, I am able to save all the stock and ~18k cash (1.5k/month).
    • I often help my family with various expenses which average to 700/month but this is an irregular expense which I take out of my cash savings. I expect this to continue for the next few years.
  • Current holdings: ~31k cash, ~10k company stock and ~6k on MSCI World ETF
    • Cash is actually 6k in EUR, 40k in USD of which I'll need 15k EUR now-ish / within 1-2 weeks.
    • 10k company stock is with Charles Schwab in US 6k MSCI world ETF is with Trade Republic here in Europe
  • Assets: Shared ownership of real estate properties in Greece (evaluation is very hard, extremely non-liquid, my percentage may be worth anything from 200k to 600k) which are used by myself and close family and I’m in the process of inheriting right now (father passed away) - I expect some inheritance tax under 3k.
  • Debt: My family has ~300k of low-interest debt in Greece which is serviced by my mother (72 years old).
    • Its status is not legally clear and (some part of it) may be judged invalid in court in 2023 - not sure about the chances here.

    • I don’t expect my mother will live long enough to pay it all off and thus I will eventually inherit what remains (along with the rest of the aforementioned assets).

My mindset and objectives:

  • My primary objective is retirement in 30 years (by 2052). It'd be great to leave something positive for my future children to inherit.
  • I don’t have that much faith in the European pension I may eventually receive. I expect social welfare to slowly disappear and pensions to lag behind. Though I guess there will be some amount of money, I don’t expect it will be enough for my future family and me to retire comfortably (annually ~30k+ in today’s value).
  • I’m risk averse (not sure how to quantify it) and like the fire & forget nature of passive portfolios (yay ETFs!) with monthly saving plans.
  • My secondary objective is to have some small percentage (say 10%?) available short/mid-term for helping family members in need or other personal emergencies.

Looking for advice around:

  • What to do with my current cash reserves
  • How to allocate monthly savings
  • How to compose my investment portfolio
  • Anything else you may think of?

Thank you all in advance :)

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Just a quick update, I decided to sell the following positions:

Netflix

Spineway

Shell

Wirecard

Musk Metals

AMC

NIO

PowerCell

TUI

Palantir

Lufthansa

Fraport

Coca Cola

Estee Lauder

McDonalds

Hermes

LVMH

Plug Power

AMD

Microsoft

NASDAQ

MSCI Taiwan

MSCI Korea

and maybe Global Clean Energy.

I think I get enough cash out of this and keep the taxable gains to a minimum.

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Msci world index fund

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sell:

MSCI Korea

Nikkei 225

MSCI Taiwan

AMC

NIO

NFLX

Carnival

PYPL

META

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Single Stocks:

Alphabet

Shell

Airbus

Apple

Microsoft

MSCI Inc A

Plug Power

Berkshire Hathaway

AMD

Meta

LVMH

Hermes

NVIDIA

McDonals

Estee Lauer

SAP

Adobe

Coca Cola

Total

PayPal

Carnival

The following stocks are below 250€ so very small positions

Fraport

Lufthansa

Netflix

Palantir

Tencent

TUI

PowerCell Sweden

NIO

AMC

Musk Metals

Wirecard

Spineway

ETF (I know these are alot, some are redundant and I should most likely slim my positions down anyway):

MSCI World

MSCI EM

STOXX Europe 600

MASDAQ100

MSCI EMU Small Cap

S&P 600 Small Cap

Global Clean Energy

MSCI China

MSCI Taiwan

Nikkei 225

MSCI Korea

Asia Pacific Divdend

Euro Stoxx Dividend

MSCI USA Quality Dividend

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Thank you so much, so many encouraging words!

>I think this ETF just has other ETFs inside it and ends up being 70% US. It's OK, as long you understand what's inside it and how it impacts your portfolio.

Yeah, MSCI World basically, instead of the 10% in EM, it increases the US by the same amount. I understand it and I think it fits my ideas more. I was looking at SWRD.

>The ETF EFA is interesting, you could look into it if you like. But any international fund without US, doesn't do well in my opinion or atleast in the last two decades. Who know what the future brings.

Totally agree with you.

>two ETF that track the same index but one have 40B and the 2B? Isn't the important thing that the stocks individually have volume? Do I convey the message? It's always better to go with something well established and do your research to find out what's in it..

I agree. I made my own research and I think there isn't much difference because the volume is still very high being 2B. If you want to know, the two ETFs are SWRD and SWDA.

>World Utilities. This will have alot of "petrol" related stuff. Are you OK with that.

Really? I will look into it more then. I looked at the top holding and it was basically all electricity and similar stuff. Anyway, thanks, I now know that I need to study it better!

>Healthcare.. Sure, this is always good.

Great!

>Consumer Staples. How many companies are there P&G along with Unilever cover most of the brands.

I mean, there are still a lot of companies: Nestle, Coca Cola, Costco... and for example if you come to any Europeam country, there are still different brands that produce local stuff. For example, I don't know if it's popular in the US, but Ferrero here in Europe sell Nutella and many other stuff and it's damn big.

>Is it too early to begin? NO. NEVER. Your parent should have opened an account for you the moment they found out they were pregnant.

They didn't. I did as soon as I turned 18 though. Finance is not that well looked in my family...

> I have around 5K, slowly investing monthly a small sum wouldn’t be a bad idea, I would only go with a single fund though

>THIS is very important. I was going to tell you that you are thinking too much. Thinking is good, it helps you understand things and get comfortable, BUT thinking too much will stop you from actually doing the thing you want to do. I am glad that you will go for a single fund. I would say that you stick to one fund till you ate done with school and see how your thought process has changed.

Thank you so much! I totally agree. Overthinking is part of my character, it bothers me sometimes and I am spiritually working on this, as for example I am looking at the positive of this and overthinking let me go deep in my thoughts and develop better opinions and get more comfortable in any situation because I already thought about it, but mostly it's great for my knowledge.

My plan is exactly as you said. For now, that my capital isn't that big and my entries too, sticking to one single ETF that covers everything is the thing to do. I will DCA into SWRD!

>I enjoyed reading it. QWish you all the best.

Thank you so much! I appreciate it!

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>I am 18yrs old

This is great. I am jealous and everyone here is jealous.

Good for you.

>In these last two years I studied

That's enough is studying, stay doing. By doing you learn a hundred times more.

>I am European! (English is not my native language, I hope it's all fine)

You Are doing great, don't worry about it.

>I consider this being a big exposure to China and I would rather avoid it, for personal reasons

>gold mining and petrol and finance

That's the great thing about personally investing, you are the boss and you get to decide.

>, sorry for this, but I don't really believe in certain Emerging Market to really have a big part in the economy.

Don't be sorry. It's your opinion And you may be right.

>I know many will come to me and say "Look at what happened about Japan!"

There will always be examples for whatever point someone is trying to make.

>MSCI World instead

I think this ETF just has other ETFs inside it and ends up being 70% US. It's OK, as long you understand what's inside it and how it impacts your portfolio.

The ETF EFA is interesting, you could look into it if you like. But any international fund without US, doesn't do well in my opinion or atleast in the last two decades. Who know what the future brings.

>two ETF that track the same index but one have 40B and the 2B? Isn't the important thing that the stocks individually have volume? Do I convey the message?

It's always better to go with something well established and do your research to find out what's in it. A different type of example would be ARKK and ARKG , both are high risk high growth - but the market has not be kind to them but it might be different in 10 years.

>World Utilities

This will have alot of "petrol" related stuff. Are you OK with that.

>Healthcare

Sure, this is always good.

>Consumer Staples

How many companies are there P&G along with Unilever cover most of the brands.

>I have a question about some individual stocks and if it's worth it.

Yes, if it's important to you.

>Also I would add a South Korea ETF.

Go ahead. You could do the same for any country, as long as you know the breakdown inside the ETF

>Is it too early to begin?

NO. NEVER. Your parent should have opened an account for you the moment they found out they were pregnant.

> I have around 5K

>slowly investing monthly a small sum wouldn’t be a bad idea

>I would only go with a single fund though

THIS is very important.

I was going to tell you that you are thinking too much. Thinking is good, it helps you understand things and get comfortable.

BUT thinking too much will stop you from actually doing the thing you want to do.

You can watch hours of YouTube videos about how to ride a bicycle, but you will learn everything about riding a bike by actually spending 10 minutes on the bike.

I am glad that you will go for a single fund. I would say that you stick to one fund till you ate done with school and see how your thought process has changed.

>I hope I didn’t bother writing this much.

I enjoyed reading it.

Wish you all the best.

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Just buy ETFs like MSCI World and forget about it and never use leverage for larger timeframes, you lose way to much on "maintance" fees.

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Popular luxury-focused ETFs include the Amundi S&P Global Luxury UCITS ETF, the SPDR MSCI Europe Consumer Discretionary UCITS ETF, and the Emles Luxury Goods ETF.

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P/E for ZPRV I found here to be 9.08. S&P 500 P/E is now 23 or so.

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they use an in-house index, which some Boglehead purists find objectionable because it's not a Dow or MSCI index.

it's kinda funny watching the Bogleheads tie themselves in knots over these Fidelity funds, after pounding the table about low fees for years. even on the non-zero indexes, Fidelity and Schwab now have lower fees than Vanguard.

they're a loss-leader for Fidelity, they hope you'll eventually sign up for some of their other funds or services after coming in for the freebies.

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Yup, I run 50/50 S&P/MSCI EAFE

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>0.22% of VWRA already makes me puke

Agreed, I switched to SWRD, its MSCI not FTSE World but they're close enough for me and the 0.12% is much much more acceptable to me

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When viewed in isolation, I don't feel that .15% ER is an exorbitant fee, if it's a fund that accomplishes your investing goal. There are a variety of all-in-one funds in the US (e.g., Vanguard LifeStrategy, iShares Core [XYZ] Allocation, etc.) that offer diversified portfolios that have fees in this range, which I would have zero issue using if the fund AA aligned with my goals.

You've given limited information for people to go off of, so the advice you're going to receive is going to be limited, as well.

If there are other funds that track MSCI World (or a relative equivalent) index that are less expensive, it might be worthwhile exploring them. Some factors that you might need to consider here is the fund type (e.g., ETFs vs Mutual Funds), any transaction fees that might apply to buying another fund at whatever brokerage you're using, etc. Sometimes choosing a different brokerage opens up additional investment options that are better suited to your goals, so don't necessarily be entirely deadset on keeping your account where it is.

With that said, MSCI World is a developed markets index with large/mid cap exposure; you're going to be missing emerging markets and small caps with this index, which may be an issue for you, if exposure there is also desired. If you have to add in additional funds (that have a higher rate), that will obviously impact your overall portfolio blended expense ratio. You would need to compare your blended expense ratio vs a fund that might cover global equities at market weight (e.g., VT/VTWAX or equivalent).

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This is your moment to sell. Take your gains and make a safe long term investment with them. Maybe MSCI world?

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For our children (5 and 2) we just buy the msci world index etf once every 3 months (250 euro's each)

Its a global ETF which focus on developed country's and has a cheap costs ratio

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So I will add that I decided two years ago to never again invest in German stocks. Not only are first and foremost all the best German companies privately held and only trash to okay-ish German companies publicly listed but also the stock market and its regulatory agencies are underdeveloped. Also look up how Germany’s GDP is and how little of a share they take in eg the Msci world. Secondly, Germany is a well-fare state. Look at the laws that they currently passed. Hard working people pay a lot of taxes and if you do nothing you will also get enough (even more so with the new benefits act). So why would you invest in companies that are fiscally located in such a climate. Thirdly, large German business are notoriously known for their bad practices. Wirecard, Deutsche Bank, Adler Real Estate and more. And guess what! Fines and consequences for cheating and fraud are sooooo harmless in Germany. Yes, also my girlfriend says I should shut the f up and yes I am working and living in Germany. Downvote me as you wish, I don’t care.

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Hi everyone,
I'm a little new to Reddit and have never actually posted, but it seems like this forum has a lot of pretty good advice on investing as a whole. I (23M) am fortunate enough to have just started a job that pays roughly $300k out of college and if I am successful in my current field I expect to be making $1m / year within 3-8 years. I was wondering what you all think is the best way to invest that money such that it minimizes my tax liability when I'm older and maximizes the value of the account I will have at retirement. The purpose of this post is to discuss the accounts and structures to be putting money in -- not to say "50% SPY, 20% bonds, 30% MSCI" etc.
I currently have a normal brokerage account through E-Trade, and the company I work for offers a variety of 401k options with a very generous match. I believe that representatives from Fidelity or whoever is sponsoring the 401k's is coming to discuss all of our options between traditional, backdoor, roth, etc.
Do any of you have any advice on which accounts and structures you would use in my position with regards to structuring my 401k along with other investment and/or retirement accounts?
Thanks

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As others have said, depends on your country.

In the US, there wouldn't be much reason to pay more than the 0.07% of VT (which tracks FTSE Global All Cap, but very comparable to MSCI World).

In the UK, Vanguard's mutual fund tracking FTSE Global All Cap charges 0.23%. Very similar funds, rather different expenses. Similar or identical fees in most other European countries.

And you say your "barely have to pay fees for it" - is your bank charging you additional fees on top of the 0.15%? In the US, there's probably no reason to pay fees on top of the expenses of the fund itself, unless in a 401k and you don't get much choice. In many other countries, there are some kind of transaction fees, platform fees, etc.

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For the US, if I'm not mistaken that would be pretty high; for Europe, it'd be fairly average (for MSCI World I personally use SWRD, which is 0.12%, but the difference is negligible).

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Apple has a make of break relationship with China. A big asymmetric risk that isn’t really accounted for well. Also Apple is mainly that stable because of all the ETFs on msci world. It is literally 5% of it so there is a ton of automatic buying.

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Heyo,

I’m quite new to investing and want to passively invest. About 400 a month. My plan is then to keep it in for 30 years or so.

The more I try and build my portfolio and the more I read about the subject, the simpler it becomes. Now the complexity is just in 1 very spread low cost ETF.

Some options I consider are:

Vanguard FTSE all world UCIT etf USD acc

iShares MSCI world SRI UCITS ETF EUR

iShares AEX UCITS

I’m curious whether going in just one is a good idea, and if so, what the best options are. I can invest in most of these without transaction cost through DEGIRO.

I live in the NL, and some investments will give me tax on dividends back (which is 15%). However those very same investments have more transaction cost than the other.

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Simple: Invest in INDA. The ETF tracks the MSCI index for India.

Involved: There are 8 mutual fund houses which allow American investors. You would need to open an NRE or NRO account with an Indian bank to get started

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Global equity ER is 0.05

“The Fund shall be invested and reinvested in a portfolio of U.S. and non-U.S. equity securities (including those located in both developed and emerging market countries) with the objective of approximating as closely as practicable the capitalization weighted rates of return of the MSCI ACWI IMI Net Dividend Return Index.” - description from plan

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Could you elaborate more on why you wouldn’t use the Blackrock funds? Any other cons you can think of? I have Fidelity NetBenefits too for my 401k and I invest in Blackrock US Equity Market Fund F (0% expense ratio and closest thing to VTSAX in my 401k) and BlackRock MSCI ACWI ex-U.S. IMI Index Fund F (0.02% ER and closest thing to VTIAX).

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I'm looking at total return msci ex us since 2000 with an avg annual return of about 4%. Including the us you get about 8.7% total return since 2000

If you look at 1990-2010 with us +5.5% return and ex us had a return of +2.5%

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Yeah it is difficult to give a certain prediction. In the last 20 years it was for the Msci World 6.52 % according Ishares. Link: (https://www.ishares.com/de/privatanleger/de/anlegen/sparen-mit-etfs/etf-sparplanrechner?switchLocale=y&siteEntryPassthrough=true#einzahlung)[https://www.ishares.com/de/privatanleger/de/anlegen/sparen-mit-etfs/etf-sparplanrechner?switchLocale=y&siteEntryPassthrough=true#einzahlung]

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Daytrading isnt investement its speculation and if you arent in the top 5% of traders who work 10 hours a day you will loose. Better off just buying some ETF. It has been proven multiple time that most traders underperform the MSCI World. So stop assuming that you are one of the smarüt ones because you re not.

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You are young so you have lots of time. I would dollar averge MSCI World ETF, by adding every like 3 months. Some smaller part in crypto and gold. Who knows BTC can be either 10USD or 1 million USD in 15 years. Currently its tricky, full bull party is over as thr QE ended recently.

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Can you elaborate please? From what I've seen, MSCI world has an 11.02% Historical return and 8.3% in more recent times assuming dividend reinvesting, am I missing something?

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Just the other day I noticed that EWG, the iShares MSCI Germany ETF, was #10 in the top 10 list of unusual call volume, and #1 in the top 10 list of unusual put volume with a difference of 1702% vs. average put volume...

Just a bit of data to add to your strategy.

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Msci world is basically one of the oldest global index which encompass all developed nations

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Sorry I’m unfamiliar with msci world. I was largely referring to s&p.

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Not the past 20 years, msci world only returned a nominal return of 4.8%! But yeah 30 years is around 8% which is about right

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7% in msci is not even in the ballpark of expected returns, let alone conservative. Just an fyi.

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The primary reason is diversification. The US has not, and almost certainly will not, outperform every global market at all times always.

For example, in the period 1972-1998 MSCI World outperformed MSCI US (for interest, by 1988 the World index outperformed the US by 2:1). The US market outperformed in the years 1998-2004, then the World market outperformed the US 2004-2012. Since then the US market has outperformed (and outperformed well).

The chances of this not reversing again at some point are pretty low (albeit not impossible). Hence, diversification.

In the late 80s and early 90s Japan was the largest market in the world by market cap (yep, even bigger than the US) and its eventual decline came as a shock to many. In fact, anyone who bought the Nikkei 225 at the peak still hasn't got back to a net zero return, well over 30 years later.

I'm not suggesting that's going to happen to the US, I'm just saying that non-US markets can, have, and almost certainly will outperform the US at certain times and often for extended periods.

If anything, the fact that international markets are so weak against the US right now indicates that growth upside in a relative sense favours international markets, but of course there's many factors to consider. And this is not to say I disagree with the premise that the US is in a superior position, it almost certainly is, but will it be forever? Historical data would indicate it's very unlikely.

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So, 60% of millionaires (assume large density around the one or two million mark) never earned more than $100,000 equivalent salary.

£10k per year saved is £138,966.50

In the second 10 years assuming consistent performance of MSCI Global Average @ 7% would and £10k per year contributed see £100k turn into £415,480.49

The first £140k required the same work as the next £300k really loosely.

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I thougth S&P looks at profitability factors and earnings to be included in the index, hence why they were hestitated letting tesla into the S&P 500. Whereas Russell just looks only at market cap. I recall David Swenson was always against the Russell/FTSE index and preferred S&P/MSCI over it.

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Global Bonds Tumble Into Their First Bear Market in a Generation

  • Bloomberg bond index drops 20% from its January 2021 peak
  • A new environment as bonds fall with stocks: Schroders’ Wood

Under pressure from central bankers determined to quash inflation even at the cost of a recession, global bonds slumped into their first bear market in a generation.

The Bloomberg Global Aggregate Total Return Index of government and investment-grade corporate bonds has fallen more than 20% from its 2021 peak on an unhedged basis, the biggest drawdown since its inception in 1990. Officials from the US to Europe have hammered home the importance of tighter monetary policy in recent days, building on the hawkish message from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium.

Global bonds fall into first bear market in a generation

Rapid interest-rate hikes deployed by policy makers in response to soaring inflation have brought to an end a four-decade bull market in bonds. That’s creating a difficult environment for investors, with bonds and stocks sinking in tandem.

“I suspect that the secular bull market in bonds that started in the mid-1980s is ending,” said Stephen Miller, who’s covered fixed income since then and now works as an investment consultant at GSFM, a unit of Canada’s CI Financial Corp. “Yields aren’t going to return to the historic lows seen both before and during the pandemic.”

The elevated inflation the world now faces means central banks won’t be prepared to re-introduce the sort of extreme stimulus that helped send Treasury yields below 1%, he said.

On a hedged basis, the bond index fell as much as 12% from its peak. The simultaneous swoons for fixed-income and equity assets are undermining a mainstay of investing strategies over the past 40 years or more. MSCI Inc.’s index of global stocks has slumped 19% this year.

That has pushed a US measure of the classic 60/40 portfolio -- where investments are split by those proportions between stocks and bonds -- down 15% this year, on track for the worst annual performance since 2008.

‘Huge Deal’ “We are in a new investment environment, and this is a huge deal for those expecting fixed income to be a diversifier to risk off in equities,” said Kellie Wood, a fixed-income money manager at Schroders Plc in Sydney.

European bonds have been hit hardest this year as Russia’s invasion of Ukraine sends natural gas prices soaring. That includes the UK: a Bloomberg index tracking investment grade sterling bonds also fell into a bear market this week.

Extra yield investors demand for GBP IG credit over US sector is most since 2014

The yield spread between sterling and dollar-denominated corporate bonds is the widest since 2014, reflecting the particularly acute pressures in the UK where the highest inflation for 40 years is fueling a cost-of-living crisis. The Bank of England has warned the country will enter five consecutive quarters of recession later this year.

Asian markets have suffered less, aided by China’s debt, as the central bank there eases policy to try and turn around the world’s second-largest economy. Investment-grade dollar bond spreads narrowed last month by the most since 2020, driving them tighter than those of US peers, something that’s happened only a few times in the last decade.

Anatomy of a Bear Market Europe stands out while North America, Asia, Africa fall less than index

Source: Bloomberg

The switch in much of the world from unprecedented easing to the steepest rate hikes since the 1980s has dried up liquidity, according to JPMorgan Chase & Co.

“Bond and currency markets have seen more severe and more persistent deterioration in liquidity conditions this year relative to other asset classes with little signs of reversal,” strategists including Nikolaos Panigirtzoglou in London wrote in a research note. Bearish bond momentum is approaching extreme levels, they said.

Back to ’60s In many ways, the economic and policy realities now facing investors hark back to the 1960s bear market for bonds, which began in the second half of that decade when a period of low inflation and unemployment came to a sudden end. As inflation accelerated through the 1970s, benchmark Treasury yields surged. They would later hit almost 16% in 1981 after then Fed Chair Paul Volcker had raised rates to 20% to tame price pressures.

Read More: Harvard Academic Sees Debt Rout Worse Than 1994 ‘Bond Massacre’

Powell cited the 1980s to back his hawkish stance at Jackson Hole, saying “the historical record cautions strongly against prematurely loosening policy.” Swaps traders now see almost 70% odds that the Fed will deliver a third straight 75 basis-point hike when it meets later this month.

Other central bankers at Jackson Hole, from Europe to South Korea and New Zealand, also indicated that rates will continue to rise.

Investors are increasingly expecting the European Central Bank, due to deliver its latest policy decision on Thursday, to hike by a once-unthinkable 75 basis points at one of its next two meetings. ECB Governing Council member Joachim Nagel this week urged a “strong” reaction from policy makers after Wednesday’s 9.1% inflation print.

“September is set to become a record month for rate hikes, with most major central banks ready to deliver large moves,” Societe Generale SA strategists including Adam Kurpiel wrote in a note. “With policy still loose and inflation high, they will opt to show credibility as inflation fighters.”

Markets pricing of rate cuts next year is easing

Still, fixed-income investors are showing plenty of demand for government bonds as yields rise, aided by lingering expectations that policy makers will need to reverse course should economic slowdowns help cool inflation. In the US, options markets are still pricing in at least one 25 basis-point rate cut next year.

“I wouldn’t characterize the current trend as a new secular bond bear market but more of a necessary correction from a period of unsustainably ultra-low yields,” said Steven Oh, global head of credit and fixed income at PineBridge Investments LP. “Our expectations are that yields will remain low by long-term historical standards and 2022 is likely to represent the peak in 10-year bond yields in the current cycle.”

Schroders is also starting to see some value in government bonds as yields rise and it positions portfolios for the real risk of severe economic slowdowns, according to money manager Wood.

“In the not so distant future, there is going to be a cracking opportunity to be buying bonds as central banks guarantee us a global recession,” she said.

— With assistance by Joanna Ossinger, Alice Gledhill, and Dana El Baltaji

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XDWT - MSCI World Information Technology ETF

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NGG and MSCI-ACWI index fund

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I put almost half my investing capital on ZPRV which follows the MSCI USA Small Cap Value Weighted Index because this link showed that I could expect higher returns https://www.msci.com/documents/10199/83700218-af0a-4993-b962-00de11158106. The other half is on VWCE. I am not sure if I done goofed:D We'll see how in 20 years

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Msci world

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Here's my Code:

import pandas as pd import numpy as np from pathlib import Path import matplotlib.pyplot as plt

def is_tradingday(row): day = row["Date"] return bool(len(pd.bdate_range(day,day)))

def average_performance(day: int) -> int: if day < 1 or day > 31: raise Exception("day number needs to be between 1 and 31") data = pd.read_csv("/Users/Philipp/git/MSCI_World/data/MSCI World Historical Data.csv") string_day = str(day) if len(string_day) == 1: string_day = "0" + string_day dates = data.loc[data.Date.str.contains(pat = string_day + ", " , regex= True)] #Filter trading days dates = dates[dates.apply(is_tradingday,axis=1)] #Convert Change to float dates["Change %"] = dates["Change %"].str[:-1].astype(float)

performance_sum = dates["Change %"].sum()
number_days = len(dates["Change %"])
return performance_sum/number_days

def main(): x,y = [],[] for i in range(1, 32): x += [i] y += [average_performance(i)] print("Day of the Month: {}, AveragePerformance: {}".format(i,average_performance(i))) plt.plot(x,y) plt.axhline(y=0, c="red", label="y=0") plt.show() if name == 'main': main()

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import pandas as pd

import numpy as np from pathlib import Path import matplotlib.pyplot as plt

def is_tradingday(row): day = row["Date"] return bool(len(pd.bdate_range(day,day)))

def average_performance(day: int) -> int: if day < 1 or day > 31: raise Exception("day number needs to be between 1 and 31") data = pd.read_csv("/Users/Philipp/git/MSCI_World/data/MSCI World Historical Data.csv") string_day = str(day) if len(string_day) == 1: string_day = "0" + string_day dates = data.loc[data.Date.str.contains(pat = string_day + ", " , regex= True)] #Filter trading days dates = dates[dates.apply(is_tradingday,axis=1)] #Convert Change to float dates["Change %"] = dates["Change %"].str[:-1].astype(float)

performance_sum = dates["Change %"].sum()
number_days = len(dates["Change %"])
return performance_sum/number_days

def main(): x,y = [],[] for i in range(1, 32): x += [i] y += [average_performance(i)] print("Day of the Month: {}, AveragePerformance: {}".format(i,average_performance(i))) plt.plot(x,y) plt.axhline(y=0, c="red", label="y=0") plt.show() if name == 'main': main()

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Just plotted the average performance of the MSCI World for each day in Percent, seems to be not really significant
Day of the Month: 1, AveragePerformance: 0.10627906976744186
Day of the Month: 2, AveragePerformance: 0.13411764705882354
Day of the Month: 3, AveragePerformance: -0.027126436781609177
Day of the Month: 4, AveragePerformance: 0.12625
Day of the Month: 5, AveragePerformance: 0.00569767441860465
Day of the Month: 6, AveragePerformance: 0.10767441860465116
Day of the Month: 7, AveragePerformance: 0.050348837209302326
Day of the Month: 8, AveragePerformance: 0.06413793103448276
Day of the Month: 9, AveragePerformance: -0.0625581395348837
Day of the Month: 10, AveragePerformance: 0.05715909090909089
Day of the Month: 11, AveragePerformance: -0.10988764044943819
Day of the Month: 12, AveragePerformance: -0.027816091954022966
Day of the Month: 13, AveragePerformance: 0.021034482758620684
Day of the Month: 14, AveragePerformance: 0.017906976744186055
Day of the Month: 15, AveragePerformance: 0.1393103448275862
Day of the Month: 16, AveragePerformance: 0.17813953488372095
Day of the Month: 17, AveragePerformance: 0.1265909090909091
Day of the Month: 18, AveragePerformance: 0.016292134831460695
Day of the Month: 19, AveragePerformance: 0.012758620689655172
Day of the Month: 20, AveragePerformance: -0.07632183908045977
Day of the Month: 21, AveragePerformance: -0.018604651162790666
Day of the Month: 22, AveragePerformance: 0.08264367816091953
Day of the Month: 23, AveragePerformance: -0.06209302325581395
Day of the Month: 24, AveragePerformance: -0.06170454545454551
Day of the Month: 25, AveragePerformance: 0.07764044943820222
Day of the Month: 26, AveragePerformance: 0.11137931034482758
Day of the Month: 27, AveragePerformance: -0.01816091954022989
Day of the Month: 28, AveragePerformance: 0.06988372093023258
Day of the Month: 29, AveragePerformance: 0.08370370370370371
Day of the Month: 30, AveragePerformance: -0.042
Day of the Month: 31, AveragePerformance: -0.1192156862745098

Data Source: https://www.investing.com/indices/msci-world-historical-data

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From the prospectus of your International fund:

>The MSCI ACWI Ex-U.S. IMI (net) captures large, mid and small cap representation across 22 of 23 Developed Markets (DM) countries (excluding the United States) and 23 Emerging Markets (EM) countries. With 6,070 constituents, the index covers approximately 99% of the global equity opportunity set outside the U.S.

Since you don't have a total US market fund, you can approximate using separate funds. Your investment options are S&P500 + S&P400 + Russell2000. Using the above mentioned table, and a 60% allocation towards US, you're looking at 51% Large / 6% Mid / 3% Small. For simplicity, I would probably just go 50 / 5 / 5.

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An msci world index fund.

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FZROX/FZILX will be practically identical to VTI/VXUS.

they use different 'benchmarks'. IIRC, Vanguard uses MSCI and Fidelity uses an in-house index for the free funds and Dow Jones indexes for their other index funds. there might be very slight differences in performance, but nothing substantial.

doing the 3-fund portfolio in both is fine. also fine. also OK is using different strategies in the 401k and Roth IRA. but it depends on your overall options.

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Started out with MSCI world and em etfs. The first rally was Tesla for me. Then hit gme which bumped me up to 10-12k but ended up being a bag holder. Won’t be hard to determine where on the graph that event is. Got into a BioNTech position with 70% gain but couldn’t close it as I had logged out of my broker and could not receive a verification sms because I was on another continent. Proceeded to loose next to all but switched to options. The rest is history. Joined bbby Friday and that’s what made me the 35 cents in between screenshots

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Yeah, I'm gonna need a source for this. MSCI Europe has a USD 10 yr annualized total return of 6.45% and 35 yr return of 7.8%. Different indexes, but significant overlap.

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You need to do your own research. Just look at the MSCI ACWI IMI index. It is a global stock index with a market cap weight - you can buy a ETF on it or an equivalent vanguard ETF. The performance speaks for itself. Is the S&P 500 better? Probably for the last years, but also less diversified.

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To add to this, before FTSE, Vanguard used to use MSCI for international indices.

I'd love to see Vanguard call up CRSP to create an international stock market index, and also define deciles for them so that we can also get small cap value, midcap value, etc. also for ex-US stocks. There are a lot more than 7000-8000 publicly traded stocks outside the US as would be indicated by FTSE. Vanguard relies on CRSP for the total US stock market.

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Currently I follow a three fund portfolio minus the bond fund, I will allocate to bonds when I am closer to retirement.

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

If this was my portfolio:

I would approximate a Total U.S. Stock Market Index Fund using the S&P 500 index and Russell small cap completeness index.

https://www.bogleheads.org/wiki/Approximating_total_stock_market

MSCI Al Country World Index Ex-Us for my international allocation.

If I wanted a bond fund, I suspect they might have a bond index fund available also.

>Another option could be to go the self directed brokerage route.

Not necessary in my case since I could follow my asset allocation strategy with the funds already provided. Another consideration is if there is a fee for the self directed brokerage.

Topic of international allocation:

https://www.reddit.com/r/Bogleheads/comments/r3jdhi/as_a_us_based_investor_what_percentage_of_your/

Topic of bonds:

https://www.bogleheads.org/forum/viewtopic.php?t=328019

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>An index fund that says it looks to mirror the S&P 500 index - .03% expense ratio.

>An index fund that consists of securities in the Russell small cap completeness index. .05%

>Global index fund that approximates the MSCI Al Country World Index Ex-Us - .05%

For the stock side of your portfolio, a 50% S&P 500, 10% small cap, 40% ex-US is a nice, easy, approximation of global market cap weights.

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Could you please look at some charts of MSCI or SP500?

You will understand.

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INDA
iShares MSCI India ETF

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$INDA invests strictly in the Indian economy.

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

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But the MSCI US Investable Market Index Information Technology 25/50 that VGT seeks to track gets rebalanced at the end of each quarter (next Wednesday) and MSFT and AAPL have significantly outperformed NVDA and others in the Index this last Quarter.

I wouldn’t read too much into this and check out how the fund looks after they re-balance and update their weightings and web site literature in another week or so.

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Percentage of cash is generally going to be a transitory feature of fund operations - managing inflows and outflows and individual stock additions and subtractions will cause the cash balance of the fund to fluctuate. There is one important difference between these two funds. FTIHX is truly a passive total market index fund, replicating the MSCI all cap world index with all ~5,000 holdings. FSGGX uses a sampling method to simulate the same index, only holding a minimum of 80% of the index stocks by weight. It has less than half as many holdings, missing mostly smaller stocks, which incidentally are more complicated to manage. That is probably why it has a leaner cash balance - the manager has more leeway in stock selection. As to which will perform better, I can’t really say - both are aiming to track the performance of the same index - but given the ER difference if just 0.005%, personally I would rather own the full passive total market index including all the small caps.

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Hello! Does anyone know where can I find information of the Index MSCI WORLD INDEX (EUR) prior to 2008?

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What does everybody think of this index? MSCI USA Small Cap Value Weighted Index https://www.msci.com/documents/10199/83700218-af0a-4993-b962-00de11158106

Does it have the best performance out of all small cap indexes?

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I believe the exact full name is "MSCI World Net Total Return Index (the “Index”),"

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What is the exact, full name of the index that is being tracked?

MSCI offers a number of global indexes, some of which have ESG criteria or (much worse) are actually thematic and aim to represent, I dunno, the performance of companies from all around the world that make implements for the care of llama nostril hair or something.

But if we are talking of the MSCI World Index, it's good. It lacks emerging markets, which is not ideal (ideally, you'd want to pair a fund that tracks it with a fund that tracks emerging markets, in something like a 90/10 split), but it still has a very fair amount of international diversification and I'd definitely prefer it to the S&P500.

Be careful about the TER of the funds that are being offered, however, as well as about potential entry/exit fees. The bank is offering to waive its commissions, I presume, but it cannot do squat about the internal expenses of the fund, which can vary quite a bit from fund to fund (it's not necessary to obsess about minor differences, but some banks try to get cute about this and offer "free" funds with absolutely murderous TERs, I presume in exchange from rewards from the funds).

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