Larry Berman CFA, CMT, CTA
Vangrd Total World E.T.F.
VT-N
COMMENT
Mar 22, 2021
The most diversified holding you can get. It holds all the equities of the world. The S&P500 is also a large percentage of the world equities, and Nasdaq follows this. VT gives you the maximum amount of diversification.
Great plan if you eventually want US$’s. The great thing about global stock ETF’s is that they are true meritocracies in terms of cap weighting around the world.
This is only in the US market and trading it might involve currency conversion costs. The CAD$ is somewhat undervalued right now so he thinks this is a bad time. Also, you get all the other currency exposure.
A world index that covers everything. It is a total world index – large cap and mid cap. There is not a similar ETF that trades in Canada. You have to consider currency when investing internationally. EDIV-N he likes for dividends in emerging markets.
XIC-T vs. SPY-N vs. VT-N. After a sharp decline after a rally you are likely to retest lows. The thrust off the bottom was so significant. 10 of the last 12 corrections never went back to retest the lows. Positioning is so defensive that people are not likely to get the retesting of the lows they are waiting for. The commodity complex could see strength. All three should do well.
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