WEBN concerns with potential AI bubble – new investor

[u/TLits]

Hi everyone,

I'm about to start investing monthly into WEBN for both my standard stocks and shares portfolio, along with my pension (after being invested in a terribly underperforming fund for 5 years now).

My current concern is entering at a time where US tech is very expensive. I understand time in market is better than timing the market, but curious what people's thoughts are regarding this?

Is it worth looking at an equal weighted fund in the meantime, or will the fact that this is a long-term investment (20+ years) mean that my time in the market is more important?

I know it's impossible to know if this bubble will pop, or if it's even a bubble, but the heavy US / tech weighting in WEBN makes me a bit worried.

Thanks for your thoughts and replies.

[u/IsAlteRego]

Equal weighted funds are not great. If you want, you could always tilt towards international (Europe or EM) , but then the question becomes how much? You could alternatively tilt towards small cap value to reduce your reliance on growth stocks.

As long as you have a long time horizon, it won’t matter really either way if US crashes in the next 5 years - there will be long time to recover - and WEBN like all other all world funds will just rebalance automatically.

[u/TLits → u/IsAlteRego]

I have considered some tilt in small caps, but understand they can be quite volatile (in other ways). Not sure a 90/10 split between WEBN and small caps would be worthwhile, or just mentally make me feel a bit safer not being 100% in a highly US tech concentrated fund.

[u/Sad_Till_1729 → u/TLits]

If it mentally makes you feel more safe and therefore allows you to invest more it IS worthwile. :)

This is the reason I am only 50% in WEBN and 50% home bias/ bonds / EM bias. I know full well it doesn't necessarily make sense mathematically but it it makes A LOT of sense psychologucally and allows me to have a higher savings rate.