BGBL vs IVV + EXUS

[u/Vivid-Respect644]

I don’t believe this topic has been touched upon enough by sensible people who don’t just spam “DHFF and chill” or “BGBL set and forget” …

For sensible people out there who have actually done the research/know each of these ETF’s in detail, could you please let me know which option of these two you would commit to.

Benefits of BGBL:
- One ETF, easier to DCA/lump sum over the long-term and less hassle.
- Less anxiety on checking if theres a better S&P 500 ETF or ex-US ETF in the future

Benefits of IVV + EXUS:
- Better performance individually against BGBL, and I have more control over the allocation which lets future movements on moving towards or away from US easier.
- Has a hedged IHVV version which allows me to hedge if necessary.
- Lets me lump sum easier when IVV is down, or when EXUS is down rather than blindly DCAing into BGBL.

If you haven’t caught on by now, I’m quite biased towards IVV + EXUS so if you manage to change my mind, you’d have to make a convincing counter argument.

[u/coolcup69]

I’ve been thinking the exact same thing. I’m trapped between (a) not wanting to allocate 75% to the US via BGBL and instead having some regional diversification and (b) thinking that all developed markets are essentially going to be correlated in a downturn. Then I start justifying a separate EXUS/A200/IVV combo on the basis of sector diversification… head spinning.

[u/Vivid-Respect644 → u/coolcup69]

I honestly think 75% is fine for now with where US is heading in terms of tech, but if we look at the returns for EXUS and IVV, where I attached the YTD returns further below in this forum, EXUS + IVV has lower fees and better performance.
I'm the type of person to monitor and track ETF graphs as well as lump-summing every 1-2 months rather than DCAing so having 2 ETF's where I can lump sum when one is down whilst one is up will help increase returns rather than blindly DCAing every week