My personal opinion is that it boils down to what you are trying to achieve.
If the intention is diversification, then I wouldnât recommend it because most of the S&P 500 stocks are already included in IWDA (with the exception of some of the smallest S&P 500 stocks such as Under Armour, Ralph Lauren, Alaska Air ect).
If you wanted exposure to these smaller cap US stocks, you should complement IWDA with the Russell 2000 ETF instead.
In addition, US stocks already comprise about 2/3 of IWDA, so I think adding more US exposure to that probably wonât be that helpful (unless you are relatively bullish on US relative to rest of world).
If you wanted to achieve better diversification, you could consider the EIMI ETF (which invests in emerging market stocks such as Alibaba, Tencent, Samsung Electronics, JD.com), which could complement IWDA (which invests only in developed country stocks and would not have the earlier mentioned names).
Separately, China stocks are still relatively underrepresented by global equity indices (I.e. China and South Korea stocks only takes up about 36% and 14% of the EIMI allocation respectively, but Chinaâs GDP is close to 8x that of South Korea).
So that could be another area to consider if you wanted to replicate more of how the world economy is growing.
My personal opinion is that it boils down to what you are trying to achieve.
If the intention is diversification, then I wouldnât recommend it because most of the S&P 500 stocks are already included in IWDA (with the exception of some of the smallest S&P 500 stocks such as Under Armour, Ralph Lauren, Alaska Air ect).
If you wanted exposure to these smaller cap US stocks, you should complement IWDA with the Russell 2000 ETF instead.
In addition, US stocks already comprise about 2/3 of IWDA, so I think adding more US exposure to that probably wonât be that helpful (unless you are relatively bullish on US relative to rest of world).
If you wanted to achieve better diversification, you could consider the EIMI ETF (which invests in emerging market stocks such as Alibaba, Tencent, Samsung Electronics, JD.com), which could complement IWDA (which invests only in developed country stocks and would not have the earlier mentioned names).
Separately, China stocks are still relatively underrepresented by global equity indices (I.e. China and South Korea stocks only takes up about 36% and 14% of the EIMI allocation respectively, but Chinaâs GDP is close to 8x that of South Korea).
So that could be another area to consider if you wanted to replicate more of how the world economy is growing.