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OK. But shouldn't your first step have been going from S&P 500 to total index?
by mhb 1y ago
OK. But shouldn't your first step have been going from S&P 500 to total index?
- dragontamer 1y agoHis goals were to diversify away from the USA. Total Index is practically identical to S&P500 because Total Index is also market cap weighted.
- lotsofpulp 1y agoThe market caps of those US companies is huge because they do business across the world.
- lotsofpulp 1y agoBut then they wouldn’t have felt smarter than everyone else.
- aranw 1y agoEven total market indices are not truly diversified though. For example the HSBC FTSE All World Index (which I do hold some of) still has a 58% US concentration and 27% in technology sectors (14% software services + 13% technology). For something marketed as global, there's still a massive concentration in the US and technology sectors