To make sure we're giving you good advice, could you confirm which country you're resident in, and whether or not you're a US citizen or otherwise a US taxpayer? (US connections make things complicated!). That will affect which funds you can buy (e.g. EU/UK can't easily buy US funds, US taxpayers want to avoid non-US funds, etc.).
But assuming all the funds you've listed are available to you and don't have punitive tax consequences, the answer is "we don't know exactly which of these mixes will be best, but they're all going to be pretty damn close." FTSE and MSCI are the two big beasts of the index world, for funds that appear to be relevant to you. The only advantage of two-fund over one-fund would be if you can find two funds with a lower TER than a single fund, then it saves you a bit. Otherwise it adds a small amount of complexity and doesn't actually add diversification (you'll hold approximately the same underlying stocks, just in one basket or two).
Brute number of equities is a rough way of comparing funds - the x-thousandth holding is so tiny it makes no practical difference. It's true that the bulk of returns come from a small number of stocks, but whether the fund holds the next winner now or buys it when it gets to 0.00x% of market weight and then holds it all the way up makes no practical difference.
You've found the right kinds of funds, you can't go much wrong. At this point, it might come down to convenience - which funds are easiest to buy in your broker of choice? Do any of them have marginal tax advantages in your country?
But assuming all the funds you've listed are available to you and don't have punitive tax consequences, the answer is "we don't know exactly which of these mixes will be best, but they're all going to be pretty damn close." FTSE and MSCI are the two big beasts of the index world, for funds that appear to be relevant to you. The only advantage of two-fund over one-fund would be if you can find two funds with a lower TER than a single fund, then it saves you a bit. Otherwise it adds a small amount of complexity and doesn't actually add diversification (you'll hold approximately the same underlying stocks, just in one basket or two).
Brute number of equities is a rough way of comparing funds - the x-thousandth holding is so tiny it makes no practical difference. It's true that the bulk of returns come from a small number of stocks, but whether the fund holds the next winner now or buys it when it gets to 0.00x% of market weight and then holds it all the way up makes no practical difference.
You've found the right kinds of funds, you can't go much wrong. At this point, it might come down to convenience - which funds are easiest to buy in your broker of choice? Do any of them have marginal tax advantages in your country?
Statistics: Posted by tubaleiter — Sun Oct 27, 2024 1:55 am — Replies 5 — Views 247