1Yr·

Hello everyone,

would these ETFs be sufficient for return and diversification? I am 34 and the investment period would be until retirement :-)

50% $VWCE (-0.03%) FTSE World

15% $CSPX (+0.09%) SP500

10% $ANX (-0.3%) Nasdaq 100

10% $FLXI (-0.01%) MSCI FTSE India

10% $EXSA (-0.07%) stoxx 600

5%. $EWG2 (+1.8%) Gold Euwax 2

Would then be 58% USA, 18% Asia and 18% EU

TECH is 25%

I currently have 70% Sp500, 20% sp500 Tech and 10% nasdaq 100 and want to change this

Thank you already

18 Comments

Epi@Epi

1Yr

In the FTSE World you have 60% S&P500 and in the S&P500 you have 60% Nasdaq100. The correlation between the ETFs should be over 0.9. What does that get you?
5% gold - that doesn't compensate for anything in a crisis. What's the point?
And why are you doing without BTC?

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Eselai@DonkeyInvestor

1Yr

@Epi only correct answer

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stock_sleuth_198@stock_sleuth_198

1Yr

@Epi

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Epi@Epi

1Yr

@stock_sleuth_198

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Kai@Dividenden-Sammler

1Yr

I would combine the 15% S&P500 with the 50% FTSE Allworld into one position. I don't think you need both together.

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Sven@Nevs1848

1Yr

If you can cope with this blatant USA overweighting, you can do it that way, but it would be a bit too confusing for me. Best regards

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Sven@Shaikun

1Yr

@Nevs1848 are only approx. 58% USA, 18 Asia, 18 EU. What would you choose then? Take out Nasdaq and raise eu+Asia to 15%?

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Sven@Nevs1848

1Yr

@Shaikun No, that's much more NASDAQ and S&P500 are already 100% together. Then FTSE another 60%.

I would invest like this:

FTSE - 55%
Stoxx 600 - 25%
MSCI India - 12%
BTC&ETH - 8%

That's quite enough, you can also shift the percentages as required. But that's how I would do it and I'm also in the process of changing my portfolio more in this direction.

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Sven@Shaikun

1Yr

@Nevs1848 I think you miscalculated :-) FTSE is 60% USA. Sp500 100% that cancels out stoxx 100. We are back to 60% nasdaq and Asia cancels out. That leaves gold, which gives the total USA share as 58%. :-) This is also stated in the breakdowns in the test portfolio :-)

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Kill_Baulitz@Johann_van_der_Smut

1Yr

@Nevs1848 Have you ever experienced that the USA is gifted for a longer period of time and the rest of the world is not? I don't think I've even experienced it on a daily basis. What I'm saying is that if it sucks there, it sucks everywhere else. That's why I don't understand the panic about overweighting the USA. Take a look at any EuroStox ETF. Your feet will fall asleep. You'd be better off buying gold...

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Sven@Nevs1848

1Yr

@Johann_van_der_Smut It's not always about the maximum return, because the risk here is also much higher. According to your answer, you could also invest 100% in the NASDAQ. You certainly don't do that yourself. Personally, I am also overweight in America because I simply like the companies. Nevertheless, the EuroStoxx is not to be sneezed at, as it also contains some great companies. Besides, you never regret a broad diversification.

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Sebastian@Enigma_4

1Yr

So you're putting almost 90% of your money in American companies and most of it in tech companies?
With the $VWCE you already cover almost everything or am I wrong (?), maybe add some more emerging markets to have the weighting not only on the big companies and there best 70/30

Would be a strategy now

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Sven@Shaikun

1Yr

@Enigma_4 USA share would only be 58%, i.e. less than with a FTSE only :-)

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Sven@Shaikun

1Yr

So it would be 58% USA 18 Asia and 18 EU.
Tech is 25% in total

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Yannic1990@Yannic1990

1Yr

As the others have already said, there is a lot of overlap between the SP500 and NASDAQ100... you can actually choose one of them... of course, if you want to achieve returns, you can't avoid tech stocks! So you can escalate here 😅 maybe you can include another future-proof ETF -> Heath Care for example... here again the question is how much USA share do you want... but there are also Health Care Europe ETFs...
Good luck 💪🏻

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sagt@konfuszius

1Yr

I take a critical view of overlapping ETF stacking if it is not justified by a clear strategy.
Add 15% USA and 10% Europe to the All-World? I.e. essentially underweight Japan & Co... what do you have against them? Or what's the point?
Also, the All-World has 30% tech... why add an extremely tech-heavy ETF if you seem to want to get out at 25%?

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Sven@Shaikun

1Yr

@Dividensenmann hi, i don't want to come out at 25% tech, but it would be 25%tech in this split :-)

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Brent@Belgian_Engineer

1Yr

You have 50% in world ETF while the s&p is also a world ETF. And this isn't good diversification if this is your whole investment portfolio or you need to be prepared to lose big in the future. When you retire and the market crashes you could out live your earnings.

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