VWCE or VUAA

[englishmuffin]

@kreative333 Practically yes, in each TBSZ account you have 1 year collection period (when you can put in money), then the next 5 years you can trade within the account, but can’t transfer in or out money. However in each year you can open a new TBSZ.

 

[kreative333]

@englishmuffin Thanks, I will tell her. It sounds good.

 

[kaytiedid]

@stepham VWCE = more diversification

 

[dcthornton]

@stepham I chose VWCE and with the spare amount that I'm ok with risking it for short to medium term higher returns, I'm buying directly stocks for companies that grow quick these days.

 

[larryzz]

@stepham You can't go wrong with either one. And VWCE is not less risky, because both ETFs are all stocks and they correlate too much because the S&P500 constitute 60% of VWCE anyway.

So why go VWCE? It is extra diversification that the common argument for it is: if the international stocks outperform US stocks, you won't miss out.

I personally chose not to worry about the above scenario, and hence I went the all VUAA path.

 

[lilpumpkin06]

@stepham I have 60% VUAA 40% VWCE! I like the higher exposore to SP500 and expect higher returns too.

 

[jmthumper0]

@stepham I would get VUAA and rebalance in 10-15 years to VWCE. No way USA gets undermined in the next decade. In the next 20 maybe.

 

[manojrea]

@stepham Can I ask what brokerage did you choose? At IBKR for example is not possible to buy this two ETFs.