IWDA $100 in 2024?

 

I am happy to buy ETFs which they are cheap, and they were still cheap as early as late 2022: BuyafterCrash: Strategy: Sep 2022

One glance at the latest prices for IWDA, an MSCI ETF, will show the prices have risen quite a bit since 2022. In fact, I would say fair odds to reach $100 this year. IWDA is currently 70% US stocks so one wonders whether it is useful as a global ETF. After all, the expense ratio of a pure US ETF is lower than IWDA. In contrast, Vanguard World is 'only' 61.6% USA.

However, I am terrible at buying ETFs when they are expensive. I see that my average buying price is so much lower than current prices and I conclude that its too expensive. This is not necessarily the correct way to invest.

I suppose that's why we have the idea of regular dollar-cost averaging to remove the psychological aspect of investing. Like I mentioned a couple of posts earlier, I had sunk US$15k into global ETFs and this week, I have put in $3k more for a total of US$18k YTD. My idea is to bring forward my buying, and start waiting once it goes above a certain price level. Using IWDA (which tracks MSCI World) as a barometer, I would say we are not far off and I would want to take a break from buying World ETFs when IWDA goes 2% higher and crosses $95.

I may also consider buying only the Global Dividend ETFs VHYD and WQDV because they have less of the "Magnificent 7" versus the regular Global ETFs. The assumption being that if market corrects, the Magnificent 7 will correct more than other stocks.