Have you been looking at your portfolio’s performance lately? Has it met with what you were expecting? Do you understand how last year’s returns stacked up and how that might translate into future returns by location and sector moving forward?
US large caps that represent over 50% of world stocks remained the best risk-adjusted asset class. Most back-testing tools frequently overweight it in portfolios and it’s one of the reasons why some US investors are reluctant to invest internationally.
While you can’t control market returns, you may still think of small adjustments. A more practical take-away from Vanguard’s analysis would be to keep your lazy World ETF & perhaps remove that Nasdaq bet that you may have that worked so well during the pandemic!