SXR8 strategy update
I’ve been investing only in SXR8 (S&P 500) for about 6 years and it has worked well so far.
Lately I’ve started thinking about US concentration risk, especially with the AI/tech boom and how much of the market is now tied to a few mega-cap US stocks.
I see 3 options here but not know what to choose:
Sell everything and switch to MSCI World
→ downside: I’d realize capital gains and pay taxes, which feels like a big hit
Keep SXR8 and add an ex-US ETF (like MSCI World ex-USA)
→ downside: I would need to manually rebalance over time (buy/sell to maintain allocation), which adds complexity and potential tax drag, and the ex-US part is developed markets only (no emerging markets)
Keep SXR8 and add MSCI World
→ downside: significant overlap with S&P 500, so US exposure becomes “double weighted” unless carefully managed
Right now I’m stuck between simplicity, taxes, and proper diversification.
Curious to hear how others handle this.