I think it's pretty clear that during the 20th century, the United States was the best mix of stability and growth for investing. In the 21st century, there may be more upside in global funds, but I will say I am not particularly confident in European economies that seem to be gradually drifting away from a true market economy and perhaps overly focused on 'green' initiatives such as electric cars over larger issues like energy sustainability and investments in infrastructure. I also do not love economies with aging populations where the ratio of worker / non-worker is becomming more dramitic over the next few decades.
Thanks for the insightful comment. That all makes sense! Personally, I still think it’s impossible to know what will happen in the global economy, so take comfort in using a global fund and knowing I’m globally diversified
Great video mate! Do you think the fact more and more people seem to be clued up and investing/investing in index funds will have any effect on the future markets?
That’s a great point Harry, tough one to say! I think many are still unaware and many still try to ‘beat the market’. But you are right, over time more people are aware, which has raised the question of an ‘index fund bubble’. But tbh, who knows! You’d imagine more money in the stock market = more people buying = a higher stock market over time 🤔
@@Coopzzz360 honestly - it’s completely up to you. You can do if you want. You’d then be ‘overweight’ US stocks, as the global fund already has US stocks. So you don’t technically need the US fund. But as long as it’s a conscious decision to be overweight US stocks and you’re happy with that, then go for it!
I'm in the S&P500 just now while the US is on top but one day I may switch to global when I see the tide turning somewhere else. Until then Ill stay S&P500.
Traveling the world, seeing people on iPhones in Starbucks is an example that most of the 500 are global companies. Of course miss out on Toyota and Louis Vitton, but for me the level of diversification is good enough for me.
@@espesq agreed - still a good level of diversification. The world is very globalised, and I think something like 50% of the S&Ps revenues come from overseas. But I still prefer and stick to global funds!
I generally prefer accumulation funds, so VUAG. Although unfortunately Vanguard only offers VUSA, so if you wanted to use VUAG you’d have to use another platform like trading212! It’s worth saying - they BOTH pay dividends. It’s just VUSA pays them out as cash whereas VUAG reinvests them back into the fund
@MakingMoneySimple MSCI classify China, Taiwan and South Korea as emerging market countries, but Hong Kong and Singapore as Developed market countries. MSCI and FTSE differ in their classification of countries. If the US CAPE ratio was near its long term average I would be buying the S&P 500 instead.
@@george6977 interesting George, cheers. Assume you don’t want exposure to the former counties but do want exposure to the latter countries, which is fair enough, and hence your choice!
Top Channel, helped me a lot so far with investing! Keep up the good work!
Thanks Jesse, really appreciate that! 🙏
I think it's pretty clear that during the 20th century, the United States was the best mix of stability and growth for investing. In the 21st century, there may be more upside in global funds, but I will say I am not particularly confident in European economies that seem to be gradually drifting away from a true market economy and perhaps overly focused on 'green' initiatives such as electric cars over larger issues like energy sustainability and investments in infrastructure. I also do not love economies with aging populations where the ratio of worker / non-worker is becomming more dramitic over the next few decades.
Thanks for the insightful comment. That all makes sense! Personally, I still think it’s impossible to know what will happen in the global economy, so take comfort in using a global fund and knowing I’m globally diversified
@@MakingMoneySimple fair enough. Most S&P 500 companies are heavily divested globally as-is, but I hear your point
@@jared_does_hardmoney around 50% of S&P 500 revenue comes from overseas from memory
slowly moving towards the global all cap
Nice one Stephen! How come? For more diversification?
Great video mate! Do you think the fact more and more people seem to be clued up and investing/investing in index funds will have any effect on the future markets?
That’s a great point Harry, tough one to say! I think many are still unaware and many still try to ‘beat the market’. But you are right, over time more people are aware, which has raised the question of an ‘index fund bubble’. But tbh, who knows! You’d imagine more money in the stock market = more people buying = a higher stock market over time 🤔
Would you recommend splitting it? Say 60% all world and 40% S&P 500.
@@Coopzzz360 honestly - it’s completely up to you. You can do if you want. You’d then be ‘overweight’ US stocks, as the global fund already has US stocks. So you don’t technically need the US fund. But as long as it’s a conscious decision to be overweight US stocks and you’re happy with that, then go for it!
I'm in the S&P500 just now while the US is on top but one day I may switch to global when I see the tide turning somewhere else. Until then Ill stay S&P500.
Sounds good Mark. Thanks for sharing mate!
Traveling the world, seeing people on iPhones in Starbucks is an example that most of the 500 are global companies. Of course miss out on Toyota and Louis Vitton, but for me the level of diversification is good enough for me.
@@espesq agreed - still a good level of diversification. The world is very globalised, and I think something like 50% of the S&Ps revenues come from overseas. But I still prefer and stick to global funds!
Both are good and youll make good money if you dca into either consistently
Agreed. Hit the nail on the head. Just need to start then stay consistent!
Nice video. Do you prefer VUSA or VUAG? One pays dividends and one doesn’t. What is your view on dividend paying index’s?
I generally prefer accumulation funds, so VUAG. Although unfortunately Vanguard only offers VUSA, so if you wanted to use VUAG you’d have to use another platform like trading212!
It’s worth saying - they BOTH pay dividends. It’s just VUSA pays them out as cash whereas VUAG reinvests them back into the fund
Nice video mate, cemented me going for global index
Great to hear 💪 and thanks for watching mate!
Minor point, rather than SPY, VOO is .03 fee
Yeah - that’s the US investor equivalent. Being from the UK, in this video I was referring to the funds that UK investors have available to them 🙌
35k in snp500 only
Nice one Liam, solid amount invested too 💪
Any day US index for me 😀
Nice one mate! Which specific fund?
@@MakingMoneySimple vanguard US equity index fund
@@knowledgeseeker5499 top choice!
@@knowledgeseeker5499 how does that working out for ya so far mate???
I expect China to try and take Taiwan and the South China Sea one day so invest in MSCI World, the developed countries .
Cheers for sharing George! Are China and Taiwan in that fund? Or not?
@MakingMoneySimple
MSCI classify China, Taiwan and South Korea as emerging market countries, but Hong Kong and Singapore as Developed market countries.
MSCI and FTSE differ in their classification of countries.
If the US CAPE ratio was near its long term average I would be buying the S&P 500 instead.
@@george6977 interesting George, cheers. Assume you don’t want exposure to the former counties but do want exposure to the latter countries, which is fair enough, and hence your choice!
B O T H
Nice one 💪 do you use both these specific funds, VUSA and VWRL?