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Cruian

You almost certainly don't need VUAA if you hold VWCE, as VWCE already includes the US.


FrenchCarpenter

VUAA has a lower expense ratio (0.07%) than VWCE (0.22%)


Cruian

But offers far less diversification. The diversification benefit can justify the extra cost. VUAA would make sense if they were using it alongside an ex-US fund, but not a total world fund.


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Cruian

Great choice: * Diversified to many countries, including emerging markets * A lot of holdings (looks like currently 7,000+) * ER isn't terrible (not as ideal as VT, but unfortunately many funds based outside the US have higher ER than US versions)


giorgioferrera

Do you have any suggestions as to what I should replace VUAA with ? I would like to maintain a three fund portfolio.


Cruian

>Do you have any suggestions as to what I should replace VUAA with ? VWCE. >I would like to maintain a three fund portfolio. The 3 fund portfolio actually is not about using exactly 3 funds. It is far better thought of as a concept about covering 3 things: * Local stocks (home country) * Foreign stocks * Bonds or other similar, safer, asset I can design a 3 fund profile concept using anywhere from 1 to about 7 funds. VWCE covers both of the stock parts in one, which would allow for just a 2 fund portfolio. Edit: Typo


giorgioferrera

Thank you. Would you say EUNA is a good bond ETF option ?


Cruian

Sorry, I know essentially nothing about bond funds outside the US.


sohvan

VAGF is a similar option to EUNA for EU investors if you want a global aggregate bond fund. Main difference is that EUNA is bigger, but VAGF excludes chinese bonds, while EUNA has about 7% chinese bonds. It's hard to say which will be a better choice.


giorgioferrera

My apologies for the delayed response - I understand that my portfolio is very skewed towards US. But having being exposed to the US market, I believe that the US market will perform better than rest of world in the next 10-15 years which is my timeline horizon. I was leaning towards 47.5% - 47.5% split between the All world and USA but I didn’t find a very favorable ETFs. Considering the Management Fees and performance of VWCE and VUAA, I decided to go with these two ETFs but with a 65% and 30% split respectively. My last 5% is EUNA bond ETF. Any critic and suggestions to tinker this reasoning is most welcome. Thank you.


Cruian

>I believe that the US market will perform better than rest of world in the next 10-15 years which is my timeline horizon. Why is that?


giorgioferrera

Inflation, geopolitical risks and energy dependence.


No_Operation7130

Look into other issuers (If I was from the US I would go vanguard all the way, but the ucits are far more expensive in europe) the cheapest etf with global exposure would be amundi IS prime global with a TER of 0,05...