Why do many in this thread choose VT over VTI or VOO or IVV?

[richdawg]

@pkumom2016 Reminds me in 10 hours

 

[nicokk]

@pkumom2016 Whats up with the Warning on Swissquote you get when you try to buy VT, that you would need to bring a professional investor. I understand Europe has some regulations but in CH is it a problem to invest smaller sums in it?

 

[flda_grl]

@pkumom2016 Well with VOO you’re betting on the future performance of the US market. Historically the US has not always outperformed the rest of the world. There have been cycles.

With that being said, I agree with your statement that the large US companies are very diversified globally already. Also I don’t see any other region in the world as competitive.

 

[wes232]

@pkumom2016 One other risk with VTI or any other pure US strategy for someone based in CH is that you are very susceptible to currency fluctuations. If the dollar declines it could erase a lot of your gains (and visa versa if the dollar keeps rising). Doesn’t mean pure US is a bad strategy, but it does have more risk than I personally like.

 

[onewayjesus]

@pkumom2016 I am all on US and bet on the fact the US will outperform the rest.

Most people you see in VT are just people
Who have no idea and follow the mass - „holy grail culture“.

Which is pure BS.

Why around 99% told me NOT to do that and how the VT is so much better and am
Diversified and and and….I made almost 22% YoY so far.

The thing is:
If you take all into considerstion, the US is better, but has higher highs and lower lows.
Although those HH and LL exists, it still beats everything.

For some people who dont follow the herd like sheep, they will argue: but but but the USd loses value…

Yes true, but the USD would need to lose 5% annually in order to be at VT levels….and hedhing is shown on so many places to be just expensive….

Personally I am in IVV, QQQM and URTH.
Cant complain and I do belive that for the next 20 years the striving power will be the US - especially since companies internationalize and also use other currencies. So please tell me again how this does not look way better as a strategy than a wanna be safety net of VT?

Bonus points:
All these holy grails sayers have no idea in what VT invests…and in ehat for example IVV invests….so there is that. It is much more complex than you think. Furthermore emerging markets have been crap to invest in since forever (with a 0.01% exception). I will gladly leave them out for the gain that is worthless since they are such a small percentage….

 

[buddymiller]

@onewayjesus Fair enough you are betting on US companies and that they keep their dominance in the market. Me personally I prefer to diversify my risk and have some exposure to Switzerland (eg SMIM) or EM as I see fit. In the end we will see how it works out in 10 or 20 years.

 

[onewayjesus]

@buddymiller No one knows the future, but I am more risk averse and would love to take the % with me instead of a medium % of swiss companies.
It makes no sense to be so conservative if your time horizon is 20+ years….no matter ehat you believe in.

Did you ever check in what VT invest (what structures of companies and what for example IVV does?

 

[violet181]

@onewayjesus You look at an arbitrary time window and then claim the US outperforms. It has not always done that.

Having more diversification leads to lower risk - of course, your portfolio outperformed VT recently, but that is not the point of siversification.

Why did you not simply buy NVIDIA instead of wasting your money on all the other tech stocks?

 

[onewayjesus]

@violet181 I am not looking at any arbitrary window, those are facts. Or do you want to compare how VT and similar ETFs recovered better than the ones that are really in the market where the 2008/2009 crash happened? Flawed logic from holy grail yes sayers.

What does your diversification bring you when you invest in every crap that has no impact on your portfolio? You guys have no clue what you are buying and just copy paste answers from some threads you read somewhere.

I bet you cant even say in what categories of companies VT invests…what a joke.

While you go down the „safe road“ and a whole genration thinks they found the answer on how to invest…people around you make 20+% per year….

 

[violet181]

@onewayjesus There were multiple decades where EM outperformed DM, and also the US.

First of all, my portfolio also went up by 20% last year, I don’t own any VT. Second of all, there are people out there that perform much better than you - why don’t you invest like these people instead of sheepishly investing in US ETFs? Are you afraid you will make bad decisions and not diversify enough?

 

[onewayjesus]

@violet181 What a dumb statement, but fits you style.

Who is not looking at arbitrary years?
And still, if you put it all in one basket, the US outperformed everything….congratulations, you played yourself.

If I knew which stocks would go up, I wouldnt be here with you…..

Edit: I am up over 20% just with ETFs…..nothing more

 

[violet181]

@onewayjesus Somehow you seem to understand and do not seem to understand the concept of diversification at the same time, it’s baffling. Maybe the US is gonna outperform VT, maybe it isn’t. That’s irrelevant for the validity of investing in VT.

I am done arguing, you seem to have some anger issues. Have a good day

 

[nicholeuhas]

@onewayjesus Understood.

But why are you still investing in URTH? Thats basically VT without the 10% EM.

 

[ruzou]

@pkumom2016 If you want the global bit a quality factor ETF like IWQU will beat VT over long time periods.

High quality sectors like consumer staples, technology tend to remain high quality, whereas low quality ones like financials, airlines and energy tend to remain low quality so there isn't much mean reversion.

I'm 100% in this fund in finpension (technically a very closely related one as it's ex-Switzerland) in pillar 3 for me and the missus.

It's a bit more American heavy than VT as the U.S. is dominant in tech which is generally a high quality area. A middle ground between the two. But why not invest in, eg ASML just because it's Dutch listed?