1. Diversification: As I have big thematic ETF’s which are US heavy + a global all world ETF with 60% into US I simply didn’t need the S&P500 as I had way too much invested in the US 2. Valuation / CAPE Ratio CAPE ratio = this is the price of a market divided by its 10-year average inflation-adjusted earnings which smooths out boom/bust years to show if a market is relatively expensive or cheap. The US CAPE ended 2025 near 38-40, one of the richest readings in history, rivaled only by the dot-com peak. The UK and emerging markets were trading at a fraction of that, both below their own long-term averages. I moved the freed-up cash toward the UK and EM, where I’m paying less per pound of earnings and where there’s greater potential growth over the next decade (in my opinion). 3. Concentration risk The S&P500 isn’t as diversified as people think as the top 10 stocks (mostly Mag 7 tech) make up roughly a third of the index. You’re really buying a handful of mega-caps, not 500 companies. I prefer to actually invest in the Mag 7 and have holdings in Meta, Microsoft, Google and Nvidia. 4. Currency I’m a proud Brit - so having most of my investments in a different currency being the US dollar is a further risk people often overlook. Even if you invest in a GBP denominated ETF, the underlying companies are still priced in dollars and so your returns are still hostage to the pound/dollar exchange rate. Having a solid foundation of my portfolio in home currency investments is sensible risk management as past performance can never predict future results! 5. Strategic rebalancing I didn’t sell because I didn’t think it would continue to reach all time highs or because I think a crash is coming. I just saw a strong opportunity to recalibrate my holdings with my own risk appetite. I love the S&P500 as it’s where I started as a beginner and it’s performed amazingly. But I’m evolving how I invest so I’m not afraid to divert my investing strategy as I learn more about investing and sharing exactly what I’m doing and why with you. Follow for more honest investing backed by what I’m actually doing with my own money! - @charlielfriend