I am an Eurozone investor (Germany) and recently learned that having a moderate home bias can actually make sense, at least for Canadians.
E. g.,
- Ben Felix
,
- Canadian Couch Potato https://canadiancouchpotato.com/2012/05/22/ask-the-spud-does-home-bias-ever-make-sense/,
- Vanguard https://www.vanguard.ca/content/dam/intl/americas/canada/en/documents/CHBP_062023_V8_secure.pdf and
- The Poor Swiss https://thepoorswiss.com/de/home-bias-portfolio/.
The reasons are lower costs, less currency risks and tax advantages. The latter is not the case for Eurozone investors, I think.
I am now contemplating 80% Vanguard FTSE All World (IE00BK5BQT80) and 20% iShares Core MSCI EMU (IE00B53QG562) for the risky part of my portfolio. Does that make any sense to you?
Especially the tracking differences of the iShares Core MSCI EMU in favor of the ETF holder are remarkable, 0,439% p. a. on average since 2014.
E. g.,
- Ben Felix
- Canadian Couch Potato https://canadiancouchpotato.com/2012/05/22/ask-the-spud-does-home-bias-ever-make-sense/,
- Vanguard https://www.vanguard.ca/content/dam/intl/americas/canada/en/documents/CHBP_062023_V8_secure.pdf and
- The Poor Swiss https://thepoorswiss.com/de/home-bias-portfolio/.
The reasons are lower costs, less currency risks and tax advantages. The latter is not the case for Eurozone investors, I think.
I am now contemplating 80% Vanguard FTSE All World (IE00BK5BQT80) and 20% iShares Core MSCI EMU (IE00B53QG562) for the risky part of my portfolio. Does that make any sense to you?
Especially the tracking differences of the iShares Core MSCI EMU in favor of the ETF holder are remarkable, 0,439% p. a. on average since 2014.