Marcial (@MarcialG) on getquin

1Yr·

In a podcast I listen to the other day the $n/a (-0.36%) briefly addressed. Have me thereupon made out of pure curiosity bit smart about it and find quite interesting what I have read.

The fund is invested in 60% equities 25% bonds and 15% commodities.

The fund was launched in 2008 and had to lose 16 percent initially due to the economic crisis, but could over the years, until the end of 2022, a plus of 148 percent.

the end of 2022, a plus of 148 percent.

The fund has now reached a considerable size and is worth over 1.6 billion.

It is also very broadly diversified, but does not include any smaller companies in the fund.

For someone who wants to invest in large areas / is looking for an all rounder, the fund could be interesting.

However, I must say that the commodity share is too high for me, I know too little about it and therefore see a risk in it.

I prefer to be invested in an ETF as in my case the $XDWD (-0.09%) and that's where it stays.

I would be interested in your opinion.

What do you decide or have you already decided?

4 Comments

Rmann@Epi

1Yr

I recently took a closer look at the Arero because I'm looking for a single-fund solution for someone. The Arero is already well thought out and scientifically sound. The asset allocation is definitely even broader and more passive than a WorldETF. However: the performance has been gurgling around at about 5%pa since inception. The drawdown in the Coronacrash was as high as in the MSCI World, but the recovery afterwards only about 1/2. In my opinion this has three reasons: 1. no factor investing: Arero invests only GDP based in stocks. Thus, many long-term outperforming factors fall out. The MSCI World at least takes the large cap factor. 2. Frequent rebalancing between asset classes. When stocks do well, they are sold. As a result, Arero systematically fails to take full advantage of equity booms or commodity booms. On the way down, on the other hand, they are always added to, which also systematically leads to underperformance during longer downward phases. 3. The asset allocation (60-25-15) is outdated. I once did a backtest back to 1995 with the Arero allocation. Until 2008, this allocation was actually far superior to the WorldEtf, 2%pa better performance, half the drawdown. Since then the allocation provides 3%pa worse performance with similar drawdown. My guess is that the Arero allocation is optimized for the 1995-2008 data set. Known effect. Unfortunately not reflected at all by the creators of the Arero. Conclusion: It may of course be that the Arero catches up again in the 10 years, but it does not look like that right now. All in all, Arero is perhaps not as convincing as it looks at first glance.

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Zoro@RoronoaZoro

1Yr

There was a few months ago already times nen contribution of @TheoG where one or two opinions were commented under it, vllt helps you already times for the first :) https://getqu.in/kHLkGu/

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T G.@TheoG

1Yr

I still have the Arero at ING and have saved with 20,000 € but the savings plan ended in the meantime. Am about 3% in plus and sell at 5%. Would see it as an all in one solution. If you want no stress just Arero and done. I have also done for my nephew, there is a savings plan with 100 € per month until he is 18 and done. But since I run a dividend portfolio, at least still and now also wanted to buy gold at the bank I find the Arero no longer appropriate. Therefore, I save for retirement the $IWDA and the $EIMI. Then just real gold what I have in the safe and here the depot what you see at Zero

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