Russell 200 is more about exposure to growth vs. value -- diversification difference between 200 and 2000 is actually surprisingly very small. Russell 200 is available only as IWY - Russell 200 Growth - vs. Russell 2000. And if big tech stops outperforming, nothing says big non-tech will perform well.
I don't know if the implication is that holding all of these in a portfolio is a good thing "now," but I would be careful about the Tech-heavy approach here. With SPY, QQQ, and URTH, you'd be looking at over a combined 30+% of the Mag 7. Lots of exposure there.
People in Europe can buy a (US) ETF (without European passport) - only need to be considered professional/qualified investor. Couple of conditions to be accepted but not overly difficult at e.g. IBKR
SPY - OEF (S&P 100) has meaningfully outperformed SPY over the long haul. And XLG (S&P 50) has crushed SPY. SPY is only preferable if you have millions in it, due to the capability it allows for with options income.
QQQ - Nope. QQQM is the same exact thing (Nasdaq 100) but is 5 bps cheaper.
Russell 2000 - Nope. Too much diversification. The Russell 200 Growth (IWY) has crushed it and will always crush it.
Russell 200 is more about exposure to growth vs. value -- diversification difference between 200 and 2000 is actually surprisingly very small. Russell 200 is available only as IWY - Russell 200 Growth - vs. Russell 2000. And if big tech stops outperforming, nothing says big non-tech will perform well.
I don't know if the implication is that holding all of these in a portfolio is a good thing "now," but I would be careful about the Tech-heavy approach here. With SPY, QQQ, and URTH, you'd be looking at over a combined 30+% of the Mag 7. Lots of exposure there.
Tend to agree!
Great article, I would consider IEMG > EEM
Thanks for adding, Guy!
People in Europe can buy a (US) ETF (without European passport) - only need to be considered professional/qualified investor. Couple of conditions to be accepted but not overly difficult at e.g. IBKR
Thanks for adding, Patrick!
Excellent read and easily digestible! Also I learned a thing or two about the international ETF alternatives for our friends overseas. Thank you!
It's an honor, Leopard!
Three of them are inferior ETFs:
SPY - OEF (S&P 100) has meaningfully outperformed SPY over the long haul. And XLG (S&P 50) has crushed SPY. SPY is only preferable if you have millions in it, due to the capability it allows for with options income.
QQQ - Nope. QQQM is the same exact thing (Nasdaq 100) but is 5 bps cheaper.
Russell 2000 - Nope. Too much diversification. The Russell 200 Growth (IWY) has crushed it and will always crush it.
Best of all wasn’t even mentioned: SCHG.
Hi,
Thanks for adding!
SPY - OEF (S&P100): I guess this is a personal preference. When Big Tech would stop outperforming, the performance would be the other way around.
QQQ <-> QQQM: the liquidity is a lot lower for QQM
Russell 2000 <-> Russell 200: It depends on how much diversification you want :)