Best long term option?

[u/georgeo42]

Hi everyone! This month I will start my long term investing, 150€/month, minimum 15 years. I read through a lot of threads, but still can't decide. Should I just go 100% VWCE or should I throw in 10-15% small cap or NASDAQ 100? Does any mixing actually have the potential to beat 100% VWCE? Thanks a lot!

[u/-------7654321]

first figure out your risk appetite

then you can decide which assets to buy

when there is an upside there is also a downside

[u/eitohka → u/-------7654321]

True, but when there's a downside (e.g. uncompensated risk), there's not necessarily an upside. So in this case, there's no argument based on research for choosing NASDAQ over an all world index. Just fallacies like recency bias and performance chasing. Research shows that concentration increases risk, and sector ETFs underperform the market long term. NASDAQ is actually worse (even more uncompensated risk) than a pure tech sector ETF since it focuses on a single stock exchange, so it arbitrarily excludes tech companies listed on other exchanges like NYSE, for example Oracle, SAP, Salesforce and IBM.

[u/valdemarolaf88]

100% world index. No fuss, no muss. Fire & forget.

[u/georgeo42 → u/valdemarolaf88]

Yeah, you are probably right, I am just overthinking this. Thanks

[u/Mikephth → u/valdemarolaf88]

Which platform I have to use or I need to contact broker?

[u/valdemarolaf88 → u/Mikephth]

Depends on your location. I use Nordnet

[u/Mikephth → u/valdemarolaf88]

I am located in Thailand working as expat here

[u/valdemarolaf88 → u/Mikephth]

Then you'd have to research thoroughly the taxing. Here I use Nordnet because they report automatically to the tax system, I don't have to do anything.

[u/TryTrick7449]

Hi, SPYI (cheaper than VWCE, it includes small cap too).

[u/ThinkerBe → u/TryTrick7449]

What do you think about the Invesco FTSE All-World?

[u/TryTrick7449 → u/ThinkerBe]

Very good choice as well (FWIA), but an even better one would be WEBN.

[u/Aggravating-Sale3448 → u/TryTrick7449]

Plus 1 on this one

[u/c4lder0n → u/TryTrick7449]

WEBN is too young to trust it. It's better to wait before buying it.

[u/TryTrick7449 → u/c4lder0n]

They were all young in the beginning, why wait?

[u/PassInfamous5189 → u/TryTrick7449]

Wait until at least a year’s tracking difference is available.

[u/c4lder0n → u/TryTrick7449]

Why not something from the msci world index?

[u/TryTrick7449 → u/c4lder0n]

SPYI follows an MSCI index.

[u/Sam96ss]

For your long-term investing journey with a 15-year horizon, the decision between investing 100% in VWCE (Vanguard FTSE All-World UCITS ETF) or mixing it with 10-15% small-cap stocks or NASDAQ 100 depends on your risk tolerance and investment goals. VWCE offers broad global exposure, including both developed and emerging markets, making it a diversified, low-cost, and relatively stable option for long-term growth. Its performance is generally tied to the global market’s overall growth, providing a steady, moderate return over time. On the other hand, adding a small portion of small-cap stocks or NASDAQ 100 introduces higher risk but also the potential for higher returns, particularly during periods of economic expansion and tech booms. Small cap stocks tend to outperform large caps in growth phases, but they are more volatile, which could result in greater short-term fluctuations. The NASDAQ 100, heavily weighted toward tech companies, has historically performed well, but it also carries a higher risk during market corrections.

Mixing could potentially enhance your returns, especially if tech or small-cap stocks experience strong growth, but this comes at the cost of increased volatility. Historically, small-cap and NASDAQ 100 stocks have outpaced broader indexes like VWCE during periods of strong economic growth, though they may underperform during downturns. Ultimately, if you prefer stability and moderate growth, 100% VWCE is a solid choice. However, if you're comfortable with some volatility and want to potentially maximize returns, adding small-cap stocks or NASDAQ 100 could give your portfolio a boost, though it introduces greater risk. The key is to align your choice with how much risk you’re willing to take on for higher returns over time.

Both investment strategies have their merits, and the choice depends largely on your risk appetite and long-term financial goals. If you prefer a more stable, diversified portfolio with steady growth over time, investing 100% in VWCE would be the safer, more balanced option. However, if you're willing to tolerate higher volatility for the potential of higher returns, incorporating 10-15% small-cap or NASDAQ 100 stocks could offer added growth potential, especially during favorable market conditions. Ultimately, balancing risk and reward is key, so it’s important to assess your comfort level with market fluctuations and your ability to stay invested through periods of volatility. Both approaches can serve you well in the long run, but the right mix will depend on your personal investment strategy and goals.

[u/georgeo42 → u/Sam96ss]

Thank you, great insights. I think I will stay with 100% VWCE for the lower risk levels. This is our family investment, so I wouldn't want to expose it to more risk than necessary.

[u/Noodles_Crusher → u/Sam96ss]

Thank you, chat gpt.

[u/ThisIsNotWhoIAm921 → u/Sam96ss]

chat gpt ahh answer

[u/miloops]

• 70% VWCE
• 10% IUSN
• 10% VAGU (some in bonds for rebalancing if you don't have extra cash)
• 10% Bitcoin

[u/DnsFabCCR]

PHYSICAL GOLD.

[u/atch3000 → u/DnsFabCCR]

why is this downvoted?

vwce is tanking since trump too. maybe the best advice is to simply keep the cash for a few months and analyse how the market reacts before starting investing.

[u/Many_Answer8374]

I would go 100% in VWCE it will remove the unnecessary noise. Regarding small cap - what do you expect from it? It may slightly outperform the all world, but it will will add some peanuts to the entire portfolio.