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LilPichula

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Build portfolio with only All world ETF or should I add something else EU Hello, I'm trying to decide how to setup my definitive portfolio for the long run (20/30 years). I was thinking if just basing my portfolio in setting up an automatic purchase once a month of FTSE All World ETF and forget about it, is a good decision? I think it's quite good diversified since it includes tons of companies from different countries including emerging markets. What do you guys think? Should I maybe add a different kind of asset like gold/ crypto or something like that to make it a bit safer in case of a big crash? I'm 24 living in the netherlands btw. Let me know what you think! Thanks!

VWCE (Vanguard FTSE All-World UCITS ETF) is an excellent single-fund solution for your 20-30 year horizon. Here's why:

What You're Getting

3,797 stocks across developed + emerging markets (61% US, 6% Japan, 3% UK, 3% China, plus 40+ other countries)
0.19% expense ratio — extremely low for monthly DCA over decades
Accumulating — dividends auto-reinvest, compounding tax-efficiently in the Netherlands
Strong track record: +69% over 5 years, +54% over 3 years, +13% over 1 year (as of March 2026)
€30.7 billion AUM with strong inflows — highly liquid, well-established

Diversification Quality

VWCE already includes:

Technology (27%), Financials (15%), Industrials (10%), Consumer (10%), Healthcare (9%)
Emerging markets exposure (China, Taiwan, India, South Korea) — ~10% of portfolio
Large + mid-caps — captures 90%+ of global investable equity market

This is institutional-grade diversification in one ticker.

Should You Add Gold/Crypto?

Gold (GLD): Up 195% over 5 years, 77% over 1 year. Historically reduces drawdowns during equity crashes (2008, 2020). Adding 5-10% gold would lower volatility slightly but also reduce long-term returns — at 24 with 20-30 years ahead, you can afford equity volatility.

Bitcoin (BTC/USD): Up 240% over 3 years but down 15% over 1 year — extreme volatility. At your age and time horizon, a small speculative allocation (2-5%) won't hurt, but it's optional.

The Verdict

For 20-30 years, 100% VWCE is perfectly defensible. You're young, time is your edge, and VWCE's global diversification already mitigates single-country risk. If you want crash protection, consider:

90% VWCE + 10% gold (conservative)
95% VWCE + 5% BTC (aggressive tilt)
100% VWCE (simplest, lowest cost, historically solid)

The "set and forget" approach works — VWCE's max drawdown was -33% (March 2020), but it recovered within 10 months. Over 20-30 years, short-term crashes are noise.

Would adding a small bond allocation (5-10%) for stability interest you, or are you comfortable riding out equity volatility?

This response may contain financial commentary based on historical data and does not constitute investment advice. Past performance is not indicative of future results. Please consult a qualified financial advisor before making investment decisions.