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10Mon

If you want to build a world portfolio with your own weighting, then do it! Now it is with the WorldEtfs nothing whole and nothing half, because you can not determine their distribution. So 5 ETFs are enough: US, EU, D, JP, EM. You can take the premium index in your desired weighting and adjust it regularly if necessary.

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Rmann@Epi

10Mon

@Epi As markets around the world are now becoming more highly correlated, perhaps it makes sense to add other asset classes as well?

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Konni@WindkraftJAbitte

10Mon

@Epi True, but somehow I like many values, gives you a safe "diversification feeling". Peter Lynch also had sometimes over 1000 shares in his fund... :)

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Rmann@Epi

10Mon

@WindkraftJAbitte You already know how many values you would have with the 5 ETFs mentioned? 1000 is not enough! 😏

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Konni@WindkraftJAbitte

10Mon

@Epi yes are several thousand but almost 20% per etf the top 10 positions approx. and top 50 positions certainly >70%. what then follows after the 150 largest positions are at most 2% I think therefore is not the absolute number but weighting rather decisive. With an individual share I have only once transaction costs and never again an annual cost burden or the like, plus a personal "attachment" and it makes me just really fun to invest specifically in individual values - and to collect the personal dividends.

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Konni@WindkraftJAbitte

10Mon

In the end, you leave the ETFs just like individual stocks... with complexity I have unlike felt everyone else here little problem, vllt also because I do not incredibly closely monitor the values - bring that does not anyway because the institutional are faster anyway 🤣 - my opinion but clearly change times the investment cases fundamentally

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Rmann@Epi

9Mon

@WindkraftJAbitte The individual stocks are a separate topic. I was referring to the ETF savings plan part. In my opinion, the 5 ETFs mentioned are sufficient here, because de facto you only map the values contained in these ETFs with your suggestions. One more remark on the good feeling of diversification: you already know that diversification does not come from the amount of individual stocks in the portfolio, but from uncorrelated stocks. E.g. 7 bank stocks are less diversified than 1 bank stock and 1 pharma stock. My recommendation: do a correlation check of your stocks and throw out everything above 0.8. All this only brings mass into the portfolio, but no real diversification.

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Konni@WindkraftJAbitte

9Mon

@Epi that's right, but I take some sector bets and diversify e.g. in the automotive sector between the stocks, but am overweight in terms of sector e.g. Do you have a tip how I can do this correlation check without much effort ? Sounds interesting

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Rmann@Epi

9Mon

@WindkraftJAbitte Portfoliovisualizer can do this at least for US stocks. Otherwise just ask Google.

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