Not buying US for a while. 60% exposure is already too much.
Buying European until my portfolio is 30% European. Then I will buy global index funds again, preferably a mix that excludes the US. Don’t want more than 20-30% in US stocks. The political risk is too high in my opinion
VGK is a FTSE ETF that I’ve held since the Russian invasion of Ukraine. It has done well even with the recent drop.
VYMI is a European dividend fund that is fairly stable and generates dividend revenue. However you won’t see huge valuation swings.
Just keep in mind Europe doesn’t have a good track record of growth in newer high tech industry. Since 2000 the US and China have outperformed it. However past results don’t indicate future performance… but if Europe doesn’t enact major economic reforms, I wouldn’t put much faith in it.
This is not financial advice, I am a regular guy, not a professional or someone working with finance. Not licensed etc. If you lose everything by following anything I mention, it’s your responsibility.
I only buy passive and not actively managed funds. This is to keep the costs low. A passive fund costs anywhere from 0.1 to 0.3% each year. This is important, because that cost has to be paid every year of the total sum no matter the performance of the fund (in most cases). So low costs is important.
I usually buy a cheap index that tracks MSCI ACWI which is All Countries World Index.
By tracking it means that it buys and sells stocks to keep the holdings the same as that referance index.
MSCI ACWI is very popular as it tracks the entire world more or less. Including emerging markets.
As a Norwegian there is “Storebrand Alle Markeder” which I buy. For MSCI ACWI
But for Europe there is MSCI Europe Index, where I buy DNB Europe Indeks which tracks that.
So first check your current banks offerings, search for Europe and see what reference index they follow. Check other banks as well and see if they have lower costs for the same reference index.
I just want to mention an additional point just in case you are not aware. You should never time the market or try to be smart. There are exceptionally talented and intelligent people with the best tools in the world that you are trying to beat. You will lose sooner or later, but you might be lucky a few times. I recommend that you read about “The efficient market hypothesis”. I base all my investments on that principle.
Make sure you use tax efficient accounts if there is something like that in your country. So that you can sell and buy stocks without triggering taxes. So that the only time you have to pay taxes is when you take it out of the account.
Also, diversification is important. So make sure to diversify properly. That’s why I buy ACWI most of the time. Also make sure you have a long term view on your investments. You should be able to let the money stay in the market for an absolute minimum of 5 years
I am just a regular guy, and not an expert and not a trader or licensed or anything. I just put my savings in the stock market every month. So take everything with a large scoop of salt. This is not financial advice.
Not buying US for a while. 60% exposure is already too much.
Buying European until my portfolio is 30% European. Then I will buy global index funds again, preferably a mix that excludes the US. Don’t want more than 20-30% in US stocks. The political risk is too high in my opinion
As someone who is both new to trading and who has only had exposure to US index funds. What are some European funds you recommend?
VGK is a FTSE ETF that I’ve held since the Russian invasion of Ukraine. It has done well even with the recent drop.
VYMI is a European dividend fund that is fairly stable and generates dividend revenue. However you won’t see huge valuation swings.
Just keep in mind Europe doesn’t have a good track record of growth in newer high tech industry. Since 2000 the US and China have outperformed it. However past results don’t indicate future performance… but if Europe doesn’t enact major economic reforms, I wouldn’t put much faith in it.
This is not financial advice, I am a regular guy, not a professional or someone working with finance. Not licensed etc. If you lose everything by following anything I mention, it’s your responsibility.
I only buy passive and not actively managed funds. This is to keep the costs low. A passive fund costs anywhere from 0.1 to 0.3% each year. This is important, because that cost has to be paid every year of the total sum no matter the performance of the fund (in most cases). So low costs is important.
I usually buy a cheap index that tracks MSCI ACWI which is All Countries World Index.
By tracking it means that it buys and sells stocks to keep the holdings the same as that referance index.
MSCI ACWI is very popular as it tracks the entire world more or less. Including emerging markets.
As a Norwegian there is “Storebrand Alle Markeder” which I buy. For MSCI ACWI
But for Europe there is MSCI Europe Index, where I buy DNB Europe Indeks which tracks that.
So first check your current banks offerings, search for Europe and see what reference index they follow. Check other banks as well and see if they have lower costs for the same reference index.
I just want to mention an additional point just in case you are not aware. You should never time the market or try to be smart. There are exceptionally talented and intelligent people with the best tools in the world that you are trying to beat. You will lose sooner or later, but you might be lucky a few times. I recommend that you read about “The efficient market hypothesis”. I base all my investments on that principle.
Make sure you use tax efficient accounts if there is something like that in your country. So that you can sell and buy stocks without triggering taxes. So that the only time you have to pay taxes is when you take it out of the account.
Also, diversification is important. So make sure to diversify properly. That’s why I buy ACWI most of the time. Also make sure you have a long term view on your investments. You should be able to let the money stay in the market for an absolute minimum of 5 years
I am just a regular guy, and not an expert and not a trader or licensed or anything. I just put my savings in the stock market every month. So take everything with a large scoop of salt. This is not financial advice.