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Comment by osti | Hacker News Reader

That's the biggest problem I have with the recommendation to buy indices as if indices grow at >8% annually is an natural law.

Many (most) indices of countries in the world performed way less than 8%. US performed exceptionally well over almost a century so people are starting to take it as a natural law. If I buy US index, I'm still putting a directional bet on US stock market performing at an exceptional rate.

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One can buy "all-in-one" index-of-index funds that have all US equities, all EU, etc. In Canada (which sub-thread stated with), see VEQT or XEQT (100% equities), VGRO/XGRO (80/20), VBAL/XBAL (60/40), VCNS/XCNS (40/60).

You can probably find an 'asset allocation' fund in most countries; e.g., in the US:

* https://investor.vanguard.com/investment-products/mutual-fun...

There are also (more dynamic) 'target date' funds, where the bond allocation increases over time.

Yeah, and those have underpermed historically and it's definitely not recommended by most people.

> Yeah, and those have underpermed historically […]

Huh? Underperformed what, exactly? A globally-diversified portfolios of stocks have underperformed …a globally-diversified portfolios of stocks? …tech stocks? …consumer staples? …utilities? …Treasuries?

1/3/5/10/20-year annualized returns are available at:

* https://canadianportfoliomanagerblog.com/model-etf-portfolio...

> […] and it's definitely not recommended by most people.

Again: huh? Who is not recommending index funds for most people? And what is recommended "by most people" if not index funds?

Look at IXUS or VEU for example, in the past 5-10 years, or even longer, they have significantly underperformed US indices.

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