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Old 10-05-2019, 10:08 AM   #1211
BBCWatcher
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Join Date: Jun 2010
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Are you OK with just S&P 500 instead of IWDA, since most giant global companies are US listed anyway, and no point having stagnated Japan and European markets as significant part of it.
The late Jack Bogle made this particular argument, at least for U.S. investors in the U.S. context.

I think there are a couple viable, sustainable stock markets outside the United States, so no, I wouldn't go that far, and the S&P 500 index isn't quite the right one for these purposes anyway. The Dow Jones U.S. Total Stock Market Index, formerly known as the Wilshire 5000, is better. Bogle had this index in mind since that's the one Vanguard tracks in VTI. But it's an interesting, provocative point of view, especially if you add the ADRs.

I'm certainly not concerned that anybody is "missing" anything if they don't have 0.12% of their portfolio invested in the top 10 stocks listed in the Ukrainian stock market, for example. Don't worry about it. If there's a great new business born in the Ukraine, it'll work its way into IWDA or VWRD at some point, and you'll enjoy the ride, too.

Consider our own backyard for a moment: Singapore. Singapore is a developed country, and it's prosperous and doing rather well in national economic terms. Is the SGX doing well? No. The real Singaporean economy is outperforming the SGX, and the new, born-in-Singapore companies that are growth prospects (may or may not be realized) aren't listing on the SGX. There are plenty of companies doing plenty of business in Singapore that aren't listed on the SGX (but are listed elsewhere), and that divergence is increasing, not decreasing. For all intents and purposes you should ignore the location of the stock markets and just focus on the real businesses you're investing in. If you want to invest in businesses that do most of their business in Singapore, then a STI fund (ES3, G3B) is pretty good in that particular role. Not absolutely perfect; nothing is. However, ES3 and G3B aren't capturing "new Singapore" in business terms because the SGX isn't.

Last edited by BBCWatcher; 10-05-2019 at 10:20 AM..
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