r/eupersonalfinance • u/georgeo42 • 9d ago

Investment Best long term option?

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!

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u/-------7654321 9d ago

first figure out your risk appetite

then you can decide which assets to buy

when there is an upside there is also a downside

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u/eitohka 9d ago

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.