Both IWDA and CSPX?

Does it make sense to have IWDA acting as the core of the portfolio and CSPX as the satellite even tho most holdings in CSPX are found in IWDA anyway?

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X_X

15 Jul 2020

Well, it's quite simple and straight forward. You need to calculate their correlation coefficient and plot them graphically for a clear visual representation.

I have done the work for you (see below chart) and the correlation of these 2 funds is 0.99425. Extremely correlated. Maybe just choose one if you do not want overexposure of market risk in your portfolio. To know which one is better requires a comparison of various parameters which I look at here: https://dl.orangedox.com/fund-analysis-pdfs.

But based on performance since inception, CSPX LN seems to be a better option as it is currently hovering around the 200% region while IWDA LN is in the 100% region. Of course, the downside risk of the former will also be more volatile.

The chart can also be found in the above link

File Name: IWDA LN Equity vs CSPX LN Equity

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