Yes. Global bonds currency hedged to Euro. Thus diluting the Eurozone bond problem (Italy, a country w a less than risk-free credit rating, is largest part of the index)."Good morning.1. I disagree that VUAA is equivalent to an All-World stock index (developed markets). 71% US stocks v 100% US stocks is a material difference. There's no strong case for a non-US investor to have a US stocks bias. Such conclusions usually derive from "the US market has gone up the most" and that cannot be certain in the future (and is not this year, in fact).
2. Based on historic data, the actual difference in total return between 80/20 and 100/0 is not large. There's a very large difference in volatility. I think there's a lot of merit in having less than 100% stocks, so that when you are down 30-50% on your stocks, you are actively rebalancing towards stocks rather than risking panicking out into cash
So, given that I don't know my actual risk tolerance for market crashes and how I might experience them, it seems wise to start with a cushion from the beginning. This way, during downturns, I can rebalance by buying stocks.
The only caveat with bonds is their long market cycles. During periods when both [stocks and bonds] might be negative, one's discipline and resilience to volatility are truly tested.
Therefore, is a global stock ETF combined with global bonds a good starting point, with any adjustments to be made later on?"
Global stock it's a question of whether you include Emerging Markets or not. Half the index is China + Taiwan which poses political risks to markets. If you separate into 2 funds developed & EM, then i suggest an EM weighting of 10-15% w balance in Developed markets (which are 70% USA). A modest underweighting.
Statistics: Posted by Valuethinker — Sat Dec 20, 2025 5:40 am — Replies 11 — Views 851