Holly Mckay
Holly MackayFounder and CEO
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    • Home • Advice • Common questions

    Are global tracker funds really a safe investment?

    13 June 2024

    Question by Roger

    So Holly, in May, most of my new money went into global tracker funds. But given that 70% is US (and of that a quarter in the magnificent 7) and that the US is at a record high, after a record bull run, is that really a safe place? It would be interesting to learn what some experts think. Or are they so biased by fees into wanting us to just keep pouring money into the market?

    Answered by Holly Mackay

    We tackled the US in the blog recently - in particular we looked at Nvidia. Many experts think that despite the bull run, the US large tech firms are still making money and so remain appealing. At some point, I would expect to see the US fall out of favour but I don’t have a crystal ball as to when, and I don’t think it will be soon.

    If you have long timeframes – by which I mean 5 years+ - I don’t think global tracker funds are a bad bet and to try and second guess which region will outperform is very difficult. If you have shorter timeframes, you may want to consider having some money in fixed-term cash products to give you a bit of certainty.

    Answered by

    Holly Mackay

    Founder & CEO, Boring Money

    I’ve worked in investment markets for over 20 years. I started out at Merrill Lynch Investment Management and worked at a few big names before setting up my first business in 2008.

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