Anyone switching to a Ex USA world ETF?
Discussion
The core fund in my SIPP is a world ETF but in 2025 they have been outperformed by ETFs excluding the USA.
I know past performance is no indication of future performance and all that but in 2026 I think the dollar is going to tank big time as they ‘print’ trillions to inflate away their debt.
Is anyone else thinking of dumping the high (60%+) USA allocation of a world fund and maybe supplementing an Ex USA fund with an S&P fund?
I’m thinking about totally excluding the USA and yes I know about “Never bet against the USA”.
I know this is what financial advisors are for but I’m too tight to pay for one and who needs one anyway now we have YouTube!
I know past performance is no indication of future performance and all that but in 2026 I think the dollar is going to tank big time as they ‘print’ trillions to inflate away their debt.
Is anyone else thinking of dumping the high (60%+) USA allocation of a world fund and maybe supplementing an Ex USA fund with an S&P fund?
I’m thinking about totally excluding the USA and yes I know about “Never bet against the USA”.
I know this is what financial advisors are for but I’m too tight to pay for one and who needs one anyway now we have YouTube!
Yes, my default work pension fund is very heavy on North America. I’m thinking along exactly the same lines as you. From what I can see there isn’t a massive difference in performance between a lot of the funds that do ‘rest of the world’. I’d be really interested to hear from anyone with some good insight as it’s hard to choose between funds.
It’s all a gamble, isn’t it? I watched too much doom and gloom on YouTube back in October and bailed out of my S&P500 ETF (VUAG) and a good chunk of the global funds I had. I’m now left with about 50% in a global fund that’s about 60% USA. I’m ok with that exposure and it feels like I’ve hedged my bets.
I then watched more stuff pushing gold so after a few beers I got brave and ploughed a lot of what I’d removed into that - it’s done about 20% since then. The question for me is when to bail out of that!
As it happens, I’ve watched a fair few US-focussed videos on YT where they’re encouraging Americans to invest globally, rather than sticking to a US fund which seems the norm over there.
I then watched more stuff pushing gold so after a few beers I got brave and ploughed a lot of what I’d removed into that - it’s done about 20% since then. The question for me is when to bail out of that!
As it happens, I’ve watched a fair few US-focussed videos on YT where they’re encouraging Americans to invest globally, rather than sticking to a US fund which seems the norm over there.
Mazinbrum said:
Is anyone else thinking of dumping the high (60%+) USA allocation of a world fund and maybe supplementing an Ex USA fund with an S&P fund?
If you're still wanting some US exposure, but just not the extremely high US weighting in a world index, what about an equal weighting ETF, something like MWEP?I found a couple I’m happy with. Both Blackrock. First is their European Equity Index Tracker and the second is the UK Equity Index tracker. I think I’m going to break my default fund into equal thirds so I still retain some exposure to the US/Mag7 but switch my weighting towards Europe. I’m tempted by Japan and far east emerging markets but Japan could collapse under their debt interest payments and I know nothing about far east emerging markets.
It is so tempting to go all-in on gold but even though I’m so bullish about gold it is too risky to put everything on the line.
It is so tempting to go all-in on gold but even though I’m so bullish about gold it is too risky to put everything on the line.
Mazinbrum said:
The core fund in my SIPP is a world ETF but in 2025 they have been outperformed by ETFs excluding the USA.
I know past performance is no indication of future performance and all that but in 2026 I think the dollar is going to tank big time as they print trillions to inflate away their debt.
Is anyone else thinking of dumping the high (60%+) USA allocation of a world fund and maybe supplementing an Ex USA fund with an S&P fund?
I m thinking about totally excluding the USA and yes I know about Never bet against the USA .
I know this is what financial advisors are for but I m too tight to pay for one and who needs one anyway now we have YouTube!
Be a bit careful conflating US equities with US dollar. Yes they are correlated- but if you think about gold, as usd weakens, gold rises in value. Stocks are similar. If you’re holding stocks that are generating value globally, if the dollar weakens their $ value goes up, so it can offset. These things aren’t as simple as usd down, us equities down.I know past performance is no indication of future performance and all that but in 2026 I think the dollar is going to tank big time as they print trillions to inflate away their debt.
Is anyone else thinking of dumping the high (60%+) USA allocation of a world fund and maybe supplementing an Ex USA fund with an S&P fund?
I m thinking about totally excluding the USA and yes I know about Never bet against the USA .
I know this is what financial advisors are for but I m too tight to pay for one and who needs one anyway now we have YouTube!
stuthemongoose said:
Mazinbrum said:
The core fund in my SIPP is a world ETF but in 2025 they have been outperformed by ETFs excluding the USA.
I know past performance is no indication of future performance and all that but in 2026 I think the dollar is going to tank big time as they print trillions to inflate away their debt.
Is anyone else thinking of dumping the high (60%+) USA allocation of a world fund and maybe supplementing an Ex USA fund with an S&P fund?
I m thinking about totally excluding the USA and yes I know about Never bet against the USA .
I know this is what financial advisors are for but I m too tight to pay for one and who needs one anyway now we have YouTube!
Be a bit careful conflating US equities with US dollar. Yes they are correlated- but if you think about gold, as usd weakens, gold rises in value. Stocks are similar. If you re holding stocks that are generating value globally, if the dollar weakens their $ value goes up, so it can offset. These things aren t as simple as usd down, us equities down.I know past performance is no indication of future performance and all that but in 2026 I think the dollar is going to tank big time as they print trillions to inflate away their debt.
Is anyone else thinking of dumping the high (60%+) USA allocation of a world fund and maybe supplementing an Ex USA fund with an S&P fund?
I m thinking about totally excluding the USA and yes I know about Never bet against the USA .
I know this is what financial advisors are for but I m too tight to pay for one and who needs one anyway now we have YouTube!
On current valuations my GIA is split 63% equities, 27% private equity and 10% gold.
The equities are split 70% global tracker, 20% my employer, 10% developed markets ex. USA.
I’m expecting PE capital calls of roughy 25% of my 2026 investment budget and 25% will be to max my share save scheme. I’m tending towards the remainder going into the developed world ex. USA with maybe a tilt on the Swiss market, as my reference currency is CHF, but my investments are in EUR and USD and it’s getting a bit boring seeing the ETFs hitting record highs, but my portfolio barely moving due to the strength of the CHF.
Pension allocation is more or less out of my control.
The equities are split 70% global tracker, 20% my employer, 10% developed markets ex. USA.
I’m expecting PE capital calls of roughy 25% of my 2026 investment budget and 25% will be to max my share save scheme. I’m tending towards the remainder going into the developed world ex. USA with maybe a tilt on the Swiss market, as my reference currency is CHF, but my investments are in EUR and USD and it’s getting a bit boring seeing the ETFs hitting record highs, but my portfolio barely moving due to the strength of the CHF.
Pension allocation is more or less out of my control.
I'm waiting for April to max out my ISA again but I'm heavily weighted to the US. VUAG and my world yield is VHYL which is still highly exposed to the US. I'm thinking of splitting the investments over S&P and a different world tracker excluding the US this time. I'm certainly watching world events right now.
Mazinbrum said:
simon800 said:
Swapping out into whatever has done best most recently is the exact "typical retail investor" behaviour that costs people fortunes over time.
It s not a case of what did best last year, have you been watching the news?Plenty of people do - some sold during COVID and still haven’t re-entered the market for example.
It’s also interesting how narratives flip. For example not long ago the US dollar being “too high” was cited as a reason to avoid global equities; now a weaker dollar is being used to justify the same conclusion.
The reality is that anyone investing in a global tracker should be doing so with a 10+ year timeframe. On that horizon, today’s headlines - and the people generating them - are just noise.
andrew-6xade said:
I've done pretty well with JPMorgan emerging markets & Artemis Global income. Certainly better performing in the short term v US dominated funds.
AGI has been bloody fantastic over the past few years. Kicking myself that I've only had 2yrs of the ride. It's been such a fantastic S&P hedge.I've kept L&G Global Tech (25% alloc) but that too will be going later this year.
6mths ago in my isa/punt account I jumped into VanEck Defence ETF - it's now 27% up from my entry point. And I think there is plenty more to come from that.
I'll be moving to a more defensive posture over the next couple of years, but I think I'll keep my AGI allocation, whilst adding an all-world index.
Hustle_ said:
If you pivot now, you have to accept the possibility that you are selling US at some kind of bottom.
I know, timing the market etc etc...
I know, timing the market etc etc...
Great fun reading all the future forecasts on this topic.
Does 'some kind of bottom' include, a car manufacturer with a share price/earnings of about 200 times?
The investors tell me, that this business will soon be selling a humanoid robot to every citizen in the world, so that is what justifies the present (temporary) ludicrous valuation.
I like to sleep well each night, so am quite happy to forego the future chance of $millions dropping in to my bank account, if the humanoid robots do start doing everyone's washing and ironing, cooking, car servicing, gardening etc..
Some boring, dull and steady businesses, produced +36.53% last year, so that is enough for a lucky period.
simon800 said:
I don t tend to make investment decisions based on daily headlines either, to be honest.
Plenty of people do - some sold during COVID and still haven t re-entered the market for example.
It s also interesting how narratives flip. For example not long ago the US dollar being too high was cited as a reason to avoid global equities; now a weaker dollar is being used to justify the same conclusion.
The reality is that anyone investing in a global tracker should be doing so with a 10+ year timeframe. On that horizon, today s headlines - and the people generating them - are just noise.
Agree completely. Plenty of people do - some sold during COVID and still haven t re-entered the market for example.
It s also interesting how narratives flip. For example not long ago the US dollar being too high was cited as a reason to avoid global equities; now a weaker dollar is being used to justify the same conclusion.
The reality is that anyone investing in a global tracker should be doing so with a 10+ year timeframe. On that horizon, today s headlines - and the people generating them - are just noise.
You had no clue when you got into global trackers, you still don’t know, don’t act smart, if you were you’d have been doing something else in the first place. Is my take and indeed how I shall act.
The news must be just about the most fickle thing you could base your decisions on. Last week Epstein, week after Venezuela, then Greenland, then whatever else. It isn’t news, it’s just the world being the world as it always has done. By the time I touch a single penny of my ISA’s trump mostly like will be dead.
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