Phil (@Pherror) on getquin

1Mon·

Hello everyone, my monthly savings installment currently flows equally into the following two ETFs:

What do you think of the ETF split? Would you include another one (e.g. on the S&P500, or India, etc.) and split the savings installment or leave everything as it is? Please give reasons;)

19 Comments

Kai@Dividenden-Sammler

1Mon

S&P500 doesn't really make much sense as you already have an MSCI World (would have too much duplication otherwise). What would make sense would be an EM ETF like your India ETF or a more broadly diversified EM. Or further diversification in equities would also be possible in the direction of small caps. In principle, however, the MSCI would also suffice if you want to do without EM.

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Chris@Psychedelic_Sunflower

1Mon

Dividend ETFs tend to underperform. I would take it out.

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Kristian D.@trade_whisperer_241

1Mon

I would be heavier in the US, so I’d take out the all world and put in an S&P 500 ETF instead and then keep the TDIV as a diversification to other countries & sectors. S&P500 and All World together doesn’t make much sense to me as the largest holdings in both ETFs are the same, so I don’t think it gives the diversification I wish for.

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Udo@Cash-Flow-Cow

1Mon

Doesn't answer your question, but maybe some inspiration?

Strategies are as individual as life itself. There is no right or wrong, only different.
My goal: In my early 50s (i.e. in around 10 years' time), I want to be able to say that I only go to work because I want to, not because I have to.
My strategy: Passive cash flow through dividends.
For those who don't feel like analyzing and evaluating individual companies, these are my favorite ETFs when it comes to regular passive cash flow (dividend strategy):
- WisdomTree Global Quality Dividend Growth UCITS ETF (WKN A2AG1D),
- Fidelity US Quality Income ETF (WKN A2DL7C) and
- VanEck Morningstar Developed Markets Dividend Leaders (WKN: A2JAHJ)

Even if it is now comparing apples with pears, but with them you not only have a monthly income, no, because if you reinvest the distributions first - in my case by adjusting the savings plans promptly - you have a similar or in some cases better performance than with the accumulating bread-and-butter ETF iShares Core MSCI World UCITS ETF.
The dividend growth of the Fidelity US Quality Income is even in the 2-digit range and for the other two it is still over 8%. These are very good regular "pay rises".
I also started accumulating around 2016, but at some point I found watching pure book profits boring and the thought of having to sell shares later on to get cash again wasn't exactly motivating. Then it's no longer passive, you have to actively do something. And you don't know what state of health you'll be in later to do anything or have anything done.
I don't want to have to reallocate large volumes later on, which can also cost a lot, and I don't want to use up as much substance as possible.
In addition, accumulators are now also taxed earlier, so there is no longer much difference when it comes to utilizing the tax-free amount or the compound interest effect.

And if the state were to waive capital gains tax for buy&holders, there wouldn't even need to be a subsidy, as with Riester or Rürup.

Frugalism + stock market = 📈🤑😊 Buy&hold&getDividend&relax 💶💰

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