Hi, I need advice with ETFs

[wavervelvet]

Hello everyone,

I`m a student from Poland and I got into investing a few weeks ago. I`d like to buy some diversified ETF, but I`m not sure which one to choose. I invest between 200-300 dollars every month.

Currently I`m buying VUSA everyday (DCA), but many investors say SCHB is better. Other than that I think VOO might be better too, because the fee seems lower (0,07% / 0,03%) but i also heard dividend tax is smaller with VUSA.

However, recently I saw many people from Europe invest in some global ETFs like S&P Global or FTSE.

In conclusion:

1. In your opinion, which ETFs are the best (safest and most profitable) options?
2. As an European, which from VUSA/VOO/SCHB would you choose?

 

[let216]

@wavervelvet Kinda hard to tell which one is most profitable as we can't look into the future. As of recent history, USA stocks have outperformed world ex USA stocks, by quite a margin. However, we don't know if that's going to happen for the next 10-15 years or so. I personally feel more comfortable diversifying over more countries. This not only has more geographical diversification, but other markets seem to hold more different sectors (USA stock market is very tech weighted). You can look into MSCI world for diversification over developed markets (still very large weight US). I myself am buying the FTSE all-world. This one includes a 10% in emerging markets. At the same time this will add risk, but it's great for diversification purposes.

At the end of the day, all of these ETF's are heavily correlated and will deviate a bit in risk and performance, but not all too much. I think that the decision between them is mostly a subjective one.

 

[wavervelvet]

@let216 Thank you so much for such a comprehensive answer.
I will check it out

 

[captainbelden]

@wavervelvet Accumulating ETFs are better than distributing ones, because of dividend taxation.

I'm 28 years old and on trading212, I invest long term with two funds 90% VWCE - all-world fund, most popular among EU investors. 10% ZPRV - small cap US, historically the best performing asset class there is. Definitely look them up on justetf.com and do your own research.

 

[christodoulos]

@captainbelden

Accumulating ETFs are better than distributing ones, because of dividend taxation.

Depends on the country; not sure how it is in Poland but in Germany the government actually taxes you yearly on gains in accumulating ETFs too.