Market crash portfolio?

[backpacker]

Martin Everson said:
Buy a global index and sleep well at night.
Click to expand...

I wouldn't touch such a product due to it's overdiversification and hidden fees (rebalancing costs). ->

• https://www.advisorperspectives.com...problems-with-market-cap-weighted-index-funds
• The Pros and Cons of Indexes
• The Problem With Index Funds

Martin Everson said:
A portfolios performance comes via its diversification not the concentration.
Click to expand...

A certain degree of diversification is necessary. However, that can be achieved with only a handful of globally operating, high-dividend paying companies (sector diversification). It also saves on fees.
The myth of diversification as a safety net ->

• Why Diversification Isn't Always a Good Thing
• Here's why diversification can be an investor's worst enemy
• The Dangers of Over-Diversifying Your Portfolio

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Each to their own: If one feels comfortable with a high grade of diversification and a global index investing - fine.
However, the efficiency of such a strategy should be given a second thought.

Last edited: Oct 25, 2022

 

[369]

backpacker said:
I wouldn't touch such a product due to it's overdiversification and hidden fees (rebalancing costs). ->

• https://www.advisorperspectives.com...problems-with-market-cap-weighted-index-funds
• The Pros and Cons of Indexes
• The Problem With Index Funds

A certain degree of diversification is necessary. However, that can be achieved with only a handful of globally operating, high-dividend paying companies (sector diversification). It also saves on fees.
The myth of diversification as a safety net ->

• Why Diversification Isn't Always a Good Thing
• Here's why diversification can be an investor's worst enemy
• The Dangers of Over-Diversifying Your Portfolio

---------------------------------------------------------------------------------------
Each to their own: If one feels comfortable with a high grade of diversification and a global index investing - fine.
However, the efficiency of such a strategy should be given a second thought.
Click to expand...

more important these ETF's have majority of their funds in the big names which are dropping heavily since they were all way overpriced since all etf's invested in them regardless of their real value