Etf

[justakiwi]

I have a feeling I started a thread about this some time back, but if I did, I can’t find it.

My focus for this year is to build on the companies I currently hold - I am aware that I am very top heavy with a couple, so need to balance things a bit. Alongside that plan I feel I possibly need to change the one ETF I have (USF) OR add to it, just to give me a little better global and sector diversification. I have had some very helpful discussions behind the scenes, but thought I’d throw it out there to see what others think or how they make their own decisions around choosing ETFs.

1. How does one decide which of the many global ETFs are “better” options than the others?
2. Should I be looking to add something that is not primarily US focussed, to spread the risk?

Just not entirely sure that USF is the best option for me, and my situation.

Any comments welcome.

NB: plan will be to DCA into whichever ETF(S) I choose, over the next 5-10 years.

[shanewz]

Im a newbie here and I dont know the answer to 1. However, for point 2, I myself would spread the risk and not just focus on the US. Who knows where the US will head with all their turmoil. Besides that, spreading the risk is a fundamental of investing that has served me well for many years.

[iceman]

Hi justakiwi,
I think you'er underestimating the global reach of the S&P500 (& the USF). It derives approximately 60% of its income domestically in the USA and 40% spread around the rest of the World and has revenue in all of the World's major currencies.
So I don't think you can really do any more geographical spreading than you do with the USF. If you want another ETF, I suggest you may be better with a sector specific ETF, if you have a sector you like to be well invested in.
Just my 2 cents worth

[justakiwi]

That’s a very good point. Thanks!


Hi justakiwi,
I think you'er underestimating the global reach of the S&P500 (& the USF). It derives approximately 60% of its income domestically in the USA and 40% spread around the rest of the World and has revenue in all of the World's major currencies.
So I don't think you can really do any more geographical spreading than you do with the USF. If you want another ETF, I suggest you may be better with a sector specific ETF, if you have a sector you like to be well invested in.
Just my 2 cents worth

[audiav]

Reminds of that guy who holds Amazon as his only share due to it global reach and diversity of business.

[SBQ]

Reminds of that guy who holds Amazon as his only share due to it global reach and diversity of business.

Charlie Munger has been a big fan of Amazon for the past many years. On the issue of diversification, ETFs is a way to get away from the hedge / managed funds approach to diversified investing. As Mr Munger quoted recently last week:

Munger observed that in the wealth management space “a lot of people think if they have 100 stocks they're investing more professionally than they are if they have four or five."

“I regard this as insanity. Absolute insanity,” Munger said.

"I think it's much easier to find five than it is to find 100," the 97-year-old investor argued. "I think the people who argue for all this diversification, by the way, I call it 'diworsification,' which I copied from somebody. And I’m way more comfortable owning two or three stocks which I think I know something about and where I think I have an advantage.”

https://www.msn.com/en-us/money/savingandinvesting/charlie-munger-its-absolute-insanity-to-think-owning-100-stocks-instead-of-five-makes-you-a-better-investor/ar-BB1e0tOd

[silu]

I used to do direct share investing on the NYSE and NASDAQ but lately I have less time or just can't be bothered researching companies anymore. ETFs seems to be a way for me to keep exposure for US shares but just typing ETF and how to choose gives me an overwhelming amount of options.

My question is which sites do you use and how can I pick out of the many? What should I look out for? I have decades long experience in the share market but aside knowing what ETFs are I have never bothered to research them more. Just point me in the right direction and I'm sure I'll be fine.

Chur.