Child ISA Fund All World vs S&P

[alimais]

I have a fund in my isa for my child, should I go All World or S&P etf, either VUAG or FWRG

Im pretty sure the answer is all world, its just hard to ignore the returns of S&P in the last decade

 

[2soulsearch]

@alimais "Efficient Market Hypothesis" states that asset prices reflect all available information. This forum of regular vault dwellers knows exactly the same (or less, of course) than "the market". All hopes and dreams about future returns of S&P are already included in its price. Last year's Vanguard projections say that World will do better than S&P500, but this projections are already included in prices as well.

The only choice you actually have is risk level and fees, the rest is just guessing, and, again, most probable outcomes are already included in price.

I would go World ;-)

 

[jaimez]

@2soulsearch

All hopes and dreams about future returns of S&P are already included in its price.

For which stock market is this not the case?! I need to get on it right now!

 

[rasico2012]

@2soulsearch

The only choice you actually have is risk level and fees

Fees are 3x higher in World vs S&P.

 

[shadow2]

@alimais What about all the years where the world-ex-US outperformed the US?

https://www.mymoneyblog.com/wordpress/wp-content/uploads/2017/11/us_intl_cycle-720x268.gif

Hard to ignore those too.

Solution: buy the whole market.

 

[alimais]

@shadow2 Thank you sir, I was 90% sure this was the correct answer I just wanted to hear someone else say it lol

 

[sashieng]

@alimais It is not about picking the best Unicorn, it is about picking an investment strategy you are comfortable with.

Any reason why you are limiting the choice to ETFs?