But what about currency risk?

If you live outside of the USA, the world’s largest financial market, investing in a globally diversified portfolio means you are getting significant exposure to foreign currency, typically USD. This means that changes in exchange rates between currencies will affect your returns. Should you expose yourself to these risks? Should you buy ETFs hedged to […]

My recommendations for bond ETFs

The Vanguard Total Bond Market ETF (BND) and Vanguard’s Intermediate-Term Bond ETF (BIV) are often recommended in personal finance literature as reasonable options for bond ETFs. What would be the comparable choices available for European investors? Similarly to my recommendations for equity funds, I think these suggestions may be useful for many investors but they […]

My recommendations for equity ETFs

So, you decided you want to invest in index funds but are not sure which specific funds you should pick. Or rather, you read a few personal finance books, saw the recommendations for funds like VTI  or VXUS, realized that those funds aren’t available to European investors and are not sure how to proceed. I will […]

What kind of ETFs I prefer buying?

There are thousands of ETFs available for sale. It is natural to feel swamped by all options available: countless indexes, various asset classes, multiple legal structures. Unfortunately only a small subset of available ETFs are worth being in a regular investor’s portfolio. That means we, investors, need to be extra careful when choosing ETFs. My […]

How to choose an ETF?

When starting on the journey of index fund investing, choosing an ETF may look confusing due to: Thousands of ETFs to choose from; New concepts to get acquainted with: Replication, Tracking error, Distribution type; Lots of acronyms: TER, ISIN, NAV, KIID; Choosing an ETFs does not have to be complex. Below is my process for […]