S&P 500 vs. World ETF: Which Strategy Is Better?

Should you just invest in the S&P 500 instead of a World ETF?

I'm often asked why I don't just buy an S&P 500 ETF instead of a World ETF like the FTSE All-World or MSCI World. After all, US stocks keep having better returns lately. Let's find out if that has always been the case, some pros & cons for either approach and how I'm investing!

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Video mention:

ETFs mentioned:
📌 SPDR S&P 500 Acc. (SPYL)
📌 SPDR MSCI World Acc. (SPPW)
📌 Vanguard FTSE Developed World Acc. (VHVE or VGVF)
📌 Invesco FTSE All-World Acc. (FWRA or FWIA)
📌 SPDR MSCI ACWI Acc. (SPYY)
📌 SPDR MSCI ACWI IMI Acc. (SPYI)
📌 xTrackers MSCI World ex USA Acc. (EXUS)

00:00 Investing in the S&P 500 instead of World ETFs
00:37 S&P 500 vs MSCI World vs FTSE All World
02:04 Comparing investment returns
03:41 S&P 500 instead of World ETF: Pros
04:22 S&P 500 instead of World ETF: Cons
07:10 My 1-ETF investing strategy
07:57 The best S&P 500 and World ETFs
09:02 S&P 500 vs. World ETF: Conclusion

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Disclaimer: I am only sharing my own experience. I'm not a financial advisor and you should always do your own research and due diligence before investing. Investing involves risk of losses.

[AngeloColomboFi]

What do you prefer? :) ETF list below! 👇
ETFs mentioned:
📌SPDR S&P 500 Acc. (SPYL)
📌SPDR MSCI World Acc. (SPPW)
📌Vanguard FTSE Developed World Acc. (VHVE or VGVF)
📌Invesco FTSE All-World Acc. (FWRA or FWIA)
📌SPDR MSCI ACWI Acc. (SPYY)
📌SPDR MSCI ACWI IMI Acc. (SPYI)
📌xTrackers MSCI World ex USA Acc. (EXUS)

[evelynlukmon]

80% equities 20% cash. I plan to take advantage of the current market situation as leading indicators predict a bullish S&P 500 by 2025, my concern is how to properly allocate a large stock/bond portfolio for maximum potential returns.

[dalewilliams]

Completely comes down to your appetite for risk, and also your timeline. I'm another VWCE and chill... I don't want to have to actively manage anything should the S and P 500 tank for any number of reasons. But I'm also in it for the long run, and any money that I invest in an ETF is money that I don't plan on touching until retirement. I have a healthy 9 month cash reserve sitting in an interest-bearing account, that's there for emergencies. Long term an all world ETF will give you great returns without giving you grey hairs.

[jsg_x_id]

Excellent timing with this video!
Danke Angelo!
My strategy:
World, with iShares MSCI, but now moving to Invesco’s FTSE
and
US, with iShares S&P500

[brunabodulica]

Hi Angelo, I'm also 1 etf portfolio person, invest all in Vanguard FTSE all world. I understand the fees are lower in some other cases but I trust Vanguard as a company, so that was my decision making point.

[DevOpswithDheerajYadav]

Thanks for dropping out this Video, Last year i moved from INDIA to Europe (Netherlands), I do invest in India, but new to ETF's, rentally found out your channel,
I had the similar question in my mind & now it's crystal clear, really appreciate it .

[afterbabel]

Thank you, Angelo! Your analyses are always precious

[ricardojmestre]

I was hoping exactly that you would made this video. Gracie mille! 👍🏻👍🏻👍🏻👍🏻

[helloworld]

i'm with vanguard ftse all world. when you change etfs is simply keeping the old one as is a good practice? i dont see a value in selling vanguard and buying invesco with it but just asking for your opinion.

[rajan]

Thanks for the detailed comparison helps a lot to understand the different ETFs. I followed you for the investment ideas this year and doing fine for now.

Isn’t US based companies (especially tech sector) are selling products across the globe, meaning the company location doesn’t matter but their business model. In the past there were less companies doing the same.
Btw I’m into both ETFs 😉

[arnaubertrans]

would you recommend interactive brokers rather than Trade Republic in terms that being geographically free? im based in Europe but if someday I move out(which is possible) I'll be easier to manage with IBKR right?

[kristianspot]

Can I ask you why you do you hold 3 same ETF's?

[miri]

SP500 or World ETF? Nasdaq100. It's not all US companies and it is growth concentrated. However, not everyone can stomach such volatility. I understand you are playing it safe. I would leave SP500/World ETF for a retirement. Thanks for a video. Keep what you are doing.

[derekwillstard]

Well, my strategy is to make a three ETFs combination: EQAC (Nasdaq100)=15%, VUAA (SP500)=10% and SWDA(MSCI World)=75%. The advantage is that I don’t have the feeling of missing out on huge growth performances.

[skirmish]

If you want to go set and forget, go All World

If you want to gamble on US outperforming for another few years, overweight SP500

[kristianspot]

With 2025 I am planning to start investing and going to use a advisor. I don't believe US, and putting money only in the S&P 500 is a gamble in 2025. I think in next 10 years, emerging markets from BRICS countries will perform as same as US stocks. What is your opinion ?

[samadrazzaq]

Hi @Angelo,

I’d appreciate it if you could make a video on investing in an ETF, such as the FTSE All-World, through a broker (like Scalable Capital or Trade Republic) versus investing in the same ETF within a German Level-3 pension plan. I’m interested in understanding if this could lead to significant tax savings. As a resident of Germany, I’d like to hear your opinion on this.

[Jauhl]

"On a single country's stockmarket" The issue is that The US mega companies (that are the big drivers behind the US stock markets outperformance are global businesses, That wasn't the case 20 years ago the top US companies then were US national reliant, and would underperform if the US economy did badly. This just is no longer the case and you make an error in considering the s&p or nasdaq "american" . the SP 500 will continue to outperform a global index because it's a global index with a quality filter.

[bilatos]

Hello Angelo, great video as always.
for me the best SP500 right now is the Vanguard S&P 500 UCITS ETF (USD) Accumulating (IE00BFMXXD54),
is there any particular reason you never mention it ?
thanks again for your hard work :)

[tacticalclochard]

I'm considering building a DIY "world" portfolio by combining three low priced ETFs: SPDR S&P 500 (0.03% TER) + Amundi Prime Japan (0.05%) + Amundi Prime Europe (0.05%). Almost as diversified as a developed world ETF. I know Angelo doesn't like Amundi, but apart from that, what do you think?