Non-US Investing • Diversifying my portfolio

Hmm....I understand what you're saying, but on the other hand, if I sell off that ETF, I'll get USD. Which by itself is currency diversification in my opinion. During pandemics/Ukraine war, USD/RON varied from 4.00 to 5.30 RON, so a variation of aprox 30%. Euro, on the other hand was much more stable vs RON.
Another reason for preferring USD denominated is that if I sell my company stock (US Company), I get USD, so I would pay conversion fee to get it to anything else.

In Romania i can exchange RON-EUR and back without any fees, but with USD is a bit tricky. That's why I would get the USD from selling company stock and buy directly USD denominated ETF. Leave the conversion fees to my future self

What typical.investor said. It makes no difference in returns. But use USD because you have USD.

Most of the rest of your reasoning I agree with. On the ones I would think differently...

The reason I wanted to have an ETF NASDAQ oriented would be a higher risk/higher growth. VWCE seemed a bit....boring (but I guess all passive investing is like that). VWRA might be actually a better choice and only use NASDAQ oriented ETF for a smaller chunk of money.

I'm not aware of any evidence to say that NASDAQ is higher growth for higher risk. I can say for certainty it is higher risk than VWCE because NASDAQ is far less diversified
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Crypto yes, local market is actually on fire. Romania being an emergent economy, combined with the fact that private pension funds started to have big cash, actually inflated all Romanian Stock Exchange.

A small but important grammatical correction... local market *has been* on fire. Nobody knows the future that it will remain "on fire" and keep outperforming the global market. Again, it is a concentration risk to be careful of.

Finally, to clarify the bond points... I would not invest in any bond ETF ever if in debt. But if as you say you have safe cash deposits yielding higher than the debt interest you have to pay off then this is arguably reasonable arbitrage.

Statistics: Posted by glorat — Thu Feb 29, 2024 2:20 am — Replies 7 — Views 751

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