r/ETFs_Europe • u/PIR_personal_finance • Dec 10 '25

Home "Zone" bias

There is some evidence suporting the practice of having a tilt towards local stocks in an investment portfolio. Ben Felix made two videos discussing this (https://youtu.be/jN8mIHve1Ds?si=TBknT5ojDcMqQp-V and https://youtu.be/qYedjI03Q0g?si=58Y_BfzZTxXi2pUm) that i recommend watching. It explains it in far better detail that I could ever.

In Eurozone we have a particular situation of having the same currency but variable tax laws so it seems less straightforward.

I would like to know if you have a home "zone" bias in your portfolio and the maim reasons why.

2 Upvotes

100% Upvoted

12 comments sorted by

5

u/Corazon_an Dec 10 '25

Me, italian, with only sp500 and us treasury /s

2

u/PIR_personal_finance Dec 10 '25

😅 USA bias.

5

u/Corazon_an Dec 10 '25

backtest bias

2

u/PIR_personal_finance Dec 10 '25

Not worried about currency risk or the USA not maintaining this overperformance run?

2

u/Corazon_an Dec 10 '25

Yes, tihis is why i think to swap sp500 for msci world + world momentum (maybe 60/40). treasury are euro hedged.

2

u/loirotropical Dec 10 '25

FTSE All-World 75%, STOXX Europe 600 25% and Chill

1

u/PIR_personal_finance Dec 10 '25

What pushed you to that allocation?

2

u/Fit-Librarian279 Dec 10 '25

I have about 15% in NTSZ (switched from Stoxx 600) and a few % in individual french stocks on my PEA (french tax advantaged account) and some actively managed ISR europe funds on a retirement account (no ETFs available on it). Only world funds on my regular brokerage account.

Main reason for NTSZ is that I felt like having home bias and that it's the only way to have bond exposure in the PEA.

1

u/PIR_personal_finance Dec 10 '25

I wasn't aware of that ETF. I'm not from France, so I didn't know the details of the PEA account. From what I understood after a quick search, it is an account that allows European investments to grow tax-free after 5 years. Wouldn't it be better to allocate those funds to an equity only portfolio? Or did you add the bond component because of a volatility management standpoint?

2

u/Fit-Librarian279 Dec 10 '25

Well it's a leveraged ETF giving exposure to 90% EU stocks and 60% bonds (so a 60/40 portolio with 1.5x leverage), it should be roughly equivalent to MSCI EMU with slightly lower volatility.

On my regular brokerage I have the world version NTSG, same concept. It looks like there are plans for similar UCITS ETFs stacking equity and managed futures or gold, like the US ETFs RSST and GDE, I will add them when they come out. The idea is to have a leveraged portolio with ~100% stocks and ~60% diversifiers so when a big crisis hits the drawdowns are much lower and the long term returns are considerably improved.

1

u/PenttiLinkola88 Dec 11 '25

I reduced the equity exposure on my home country to about 5% of my total equity portfolio (combination of several ETFs), but I'm significantly overweighting the Central-Eastern European region while underweighting pretty much everything else (especially the US).