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Saying the all world is over 3000 stocks is kinda pointless when most of them are like 0.1% of the total.

If the magnificent 7 tank then it will take down the all world just as fast as the S&P500.
 
Broken Hope said:
Saying the all world is over 3000 stocks is kinda pointless when most of them are like 0.1% of the total.

If the magnificent 7 tank then it will take down the all world just as fast as the S&P500.
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It won't... VAUG is about 40% mag 7, and 100% USA, VWRP is only about 24% mag 7, and more like 60% USA for example.

There will be a hit for sure but it won't be as pronounced as a hit on the S&P500 due to the lesser weighting of mag 7 in all world funds.

Then there's the diversification... Over 3000 stocks vs 500.

Of course you make reletivley smaller gains in all world vs S&P500 when the USA is doing well, but reletivley smaller losses too when it's not. That's the gamble you take though.
 
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mattyfez said:
It won't... VAUG is about 40% mag 7, and 100% USA, VWRP is only about 24% mag 7, and more like 60% USA for example.

There will be a hit for sure but it won't be as pronounced as a hit on the S&P500 due to the lesser weighting of mag 7 in all world funds.

Then there's the diversification... Over 3000 stocks vs 500.

Of course you make reletivley smaller gains in all world vs S&P500 when the USA is doing well, but reletivley smaller losses too when it's not. That's the gamble you take though.
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Look at the portfolio holdings on vanguards page, the vast majority of those 3000 stocks have a tiny percentage of the all world.

Yes the S&P might drop 2% and the all world would only drop 1.5% but generally they will drop and fall at the same times.

You won’t get a case where the S&P tanks and the all world is okay.
 
Broken Hope said:
Look at the portfolio holdings on vanguards page, the vast majority of those 3000 stocks have a tiny percentage of the all world.

Yes the S&P might drop 2% and the all world would only drop 1.5% but generally they will drop and fall at the same times.

You won’t get a case where the S&P tanks and the all world is okay.
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Yeah that's exactly what I'm saying, but with the caviat that all world won't drop as hard or fast.

That's the point I was making.
"If the magnificent 7 tank then it will take down the all world just as fast as the S&P500."

That's simply mathematically incorrect.

Pedantic maybe, but a notable distinction
 
mattyfez said:
Yeah that's exactly what I'm saying, but with the caviat that all world won't drop as hard or fast.

That's the point I was making.
"If the magnificent 7 tank then it will take down the all world just as fast as the S&P500."

That's simply mathematically incorrect.

Pedantic maybe, but a notable distinction
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Depends if the rest of the world component falls harder as well. End of the day these are all equity, just because you have less mag 7 you are exposed to other risks instead. Then there are other things like currency movements which also play a role in the ultimate value of our holdings in things like VWRP and so on.
 
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200sols said:
Depends if the rest of the world component falls harder as well. End of the day these are all equity, just because you have less mag 7 you are exposed to other risks instead. Then there are other things like currency movements which also play a role in the ultimate value of our holdings in things like VWRP and so on.
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Sure it's all interlinked to an extent, a big drop in one sector or geographical location will have a knock on effect...
I'm down today
-0.4% on VEUA
-1.4% on VWRP

I don't have an S&P500 etf but I imagine that's down more like 2% or 3%?
 
VWRP and KO (Coca cola) seem to be a great hedge, VWRP going down and my KO has gone up a few percent this past few days.
GME back down to bargain prices, 52wk low at $20 so bought some more this week, Market Cap is pretty much lower than their cash in the bank right now at 9bn so can easily wait for it to sort itself out.
 
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mattyfez said:
Sure it's all interlinked to an extent, a big drop in one sector or geographical location will have a knock on effect...
I'm down today
-0.4% on VEUA
-1.4% on VWRP

I don't have an S&P500 etf but I imagine that's down more like 2% or 3%?
Click to expand...
1.65% down for VUAG today.
 
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