Janet (@Levinson_G) on getquin

1Mon·

Portfolio Feedback

This is my boring portfolio. My goal is to build up capital more or less sustainably and generate a regular cash flow through distributing ETFs that I can live off in 10-15 years.

About the positions:

2x MSCI World, because my broker occasionally offers promotional ETFs for free savings plans. But I don't see any disadvantage in having it twice in my portfolio. In the end, this gives me a total allocation of around 22% and I have distributions in different months.
Then we have the MSCI China $HMCH (-2.52%) with an allocation of over 10% in my portfolio. I bought this ETF because I was aware of the strong undervaluation of the Chinese market and had hoped that there would be a sustained upward trend. Instead, the events of the last few days have led to a rapid rise, which has now also brought with it a certain downside potential.
The Global X NASDAQ 100 Covered Call ETF offers a payout ratio of around 10% and distributes monthly. This ETF is no longer held on a regular basis but is only bought in the event of a sharp fall in prices. I could imagine that this ETF in particular will develop positively in times of crisis and bear markets with the covered calls and provide reliable distributions.
I also have two MSCI World Factor ETFs, one Quality and one Momentum. These ETFs would theoretically be able to beat the MSCI World. However, these are two accumulators and therefore don't really fit into my strategy. Perhaps I will liquidate them.
With the $PEH (-1.92%) and the $IEMS (-1.52%) I cover the emerging markets. Here the allocation in the overall portfolio is 6% and should rise to 1/4 of the MSCI World position over the next few years.
Then I have a few low-weight ETFs, individual stocks and, of course, some gold and $BTC (-0.39%) should not be missing.

I would also like to say that this is a snapshot in time. I am constantly trying to optimize my portfolio, but there are still one or two slips at the moment. For example, the $VWRL (-0.56%) out soon.

I would be pleased to receive specific suggestions for improvement.

So have a nice weekend

29Positions

9.84%

5 Comments

beetlejuice@beetlejuice

1Mon

I think it's cool

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Show answer

Kai@Dividenden-Sammler

1Mon

Nice portfolio and also that you have thought about it.
For me, I would have 3 points that I would not like if it were my portfolio (but you have justified it for yourself and it seems to be ok)
1. for me it would be too many MSCI World ETFs. Even if it gives you distributions in different months. You could also distribute a quarterly distribution so that you take 1/3 of it each month.
2. by the way, too many ETFs per se - would clean them out a bit. Above all, you said you have MSCI World + EM-ETF, why then another All-World-ETF? The two JPM, S&P500 and Global Titans ETFs for what?
3. For me, the China weighting in the portfolio would also be too high. I'm currently considering removing it completely due to the political system with the Communist Party there.
All in all, I would keep it simpler and clearer. As I have often said, I think less is more with ETFs.

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Stuttgarter81@Moneymoney

1Mon

I agree that your ETFs often overlap. It doesn't really matter when you receive your payouts, so I can't understand the argument. I would completely avoid individual stocks - many people overestimate themselves when analyzing stocks - be humble enough to accept this. Build a world stock corporation from regional ETFs. I can recommend Christian Delacour (Youtuber) as an inspiration. My Welt AG consists of 7 regional ETFs. Depending on the size of your portfolio, 4-5 ETFs may be enough to cover the world. Rebalance once a year and you're good to go 😊... good luck 🍀👍🏻 Best regards from Stuttgart 🖖

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Thomas@UndNun

1Mon

What do you have against accumulating ETFs?
I would also like to be able to live off dividends. But first I have to build up the necessary assets.

With accumulating ETFs, you only pay tax when you sell something. So at best when you retire. And you can also try to time it favorably.

With distributing and dividend ETFs, you pay the 26.4% tax on the gains every time. And even if you reinvest the dividends, you'll have less money to invest.
Unless you need the money now, I would therefore use accumulating ETFs.

PS: I've just noticed that you're from China. The tax situation there may of course be completely different. My comments on taxes apply to Germany.

Regarding China and emerging markets, I would think about India ETFs. China's economy is currently, and for the foreseeable future, rather uncertain (see real estate crisis), while India is considered the new China in economic terms and many are now investing there because of lower wages, better demographics, less political influence and a more independent judiciary. Not to mention what may or may not happen to Taiwan.
And India ETFs are certainly better than emerging markets. Although I don't want to claim that they will be good forever. But the current return, even for just 3 or 5 years, is certainly good enough.

And sorry, I have nothing against China. China is a beautiful country. I've been there several times.
But the economic development on the stock market is simply too uncertain for me.

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