alschaeub (@alschaeub) on getquin

2Wk·

Another stupid question, but perhaps a valid one for a beginner.

Many people swear by one of the ETFs listed below. My largest position so far is the $IWDA (+1.17%) because it has felt pretty good to me so far.

Now the question: Why not put everything into the $CSNDX (+1.71%) ?

Obviously there are clear differences in the returns of the various ETFs. Why do some people swear by the "worse" ones in comparison?

And how do I find out which one is best for me?

I just want to build up assets in the long term and thus improve my pension, for example.

Possibly 2-3 more positions for buying a house or just a nest egg.

Thank you in advance! ✌🏼

PS: This is now my third post here and I think the feedback and your help here is just great!

22 Comments

wasi@wasi

2Wk

Diversification! ~1400 companies in the $IWDA vs 100 companies in the Nasdaq. World vs USA. Nasdaq also only tech companies... on justetf.com you can compare ETFs

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Banana M.@Banana_Millionaire

2Wk

I just wouldn't feel comfortable investing in just one country and almost just one sector.
You also have much higher volatility due to the often overvalued tech sector.
You have to be able to withstand that.
Also possibly unpleasant at some point in the payout phase. Selling at -20% or even lower in a bear market is certainly no fun.
I think tech and the US will continue to do well for a very long time and probably everyone will be better off with 100% N100 in the end.
I still prefer to stay a little more broadly diversified.

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Stefan21@stefan_21

2Wk

All In Nasdaq 100 means All In American technology companies. This gives you both a geographical cluster risk and a sectoral cluster risk :)

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Horrax D@Horrax

2Wk

Which MSCI World ETF did you compare here in the benchmark comparison with the core MSCI World from iShares? Looks to me like you compared a distributing ETF with an accumulating one, which you should generally avoid.

To your actual question:
"Past performance is not an indicator of future performance"
The Nasdaq Index mainly contains technology stocks, which have significantly outperformed the broad market over the past 20 years.
If you think this will also be the case in the future, there is nothing to be said in favor of this ETF.
In general, however, you must also be aware that in a serious crash, the stocks that have risen the most beforehand will also tend to crash.
In the dotcom bubble this was around -80% and the index took 15 years to recover.
If you had entered in 2000 and exited in 2015, you would have gotten around 0% return per year. Adjusted for inflation, that's still a big loss.

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Erzwo@FYBSTRD

2Wk

I would prefer the Nasdaq, precisely because of the performance. The World ETF also generally consists of approx. 60% + x% US companies. The argument "too US-heavy" cannot be accepted as all companies are represented globally and the turnover is made up accordingly

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Tino@parlania

2Wk

All in in leveraged nasdaq ✌️

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Wachstums_Aktionär@schokosahne

2Wk

The Nasdaq 100 Index contains the shares of the 100 largest domestic and foreign non-financial companies listed on the Nasdaq Stock Market. It is regarded as a benchmark for technology shares in the USA.

In the end, you have to look at where you see the future accordingly

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Pascal@PascalWasbeer

2Wk

Don't bet on 1 cow. Better to use multiple ETF with low costs.

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Vincent Mustermann@Freiheit

2Wk

I have been combining both for years and have done well with it. Invest in such a way that you can withstand crises well, are convinced of your companies and have a long investment horizon.

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six@six

2Wk

Counter question: Why not put everything into $NVDA? It went much better again.

Answer: Diversification!

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