Disclaimer: No investment advice or recommendation, this article is for information purposes only. Before you decide on an ETF, take a closer look at it in terms of positions

take a closer look at positions, sampling, regions, etc. I can't describe all of this

I can't describe everything, as it would go beyond the scope of this article

Part 1 (definition, categories & Z-score and quality factor): https://getqu.in/RCSY4a/

Part 2 (Value ETF): https://getqu.in/Nfnhqb/

Part 3 (Low Volatility ETF): https://getqu.in/Ub7KpG/

Part 4 (Momentum ETF): https://getqu.in/CNMgGw/

Part 5 (Small and Growth ETF): https://getqu.in/0NoqmW/

What are dividend ETFs?

Abbreviated what dividends are, since everyone here probably knows this: distributions by a company to its shareholders, the amount is usually voted on at the annual general meeting and is usually paid out of profits, but does not have to be (if it is paid out of the substance, this is often counted as a bad indicator).

Dividend ETFs are therefore primarily ETFs that distribute the dividends paid by companies to the ETF holders; they are also referred to as distributing ETFs (Dist.). In contrast, an accumulating (Acc.) ETF uses the dividends to buy more shares, i.e. it reinvests.

Because the dividend ETF distributes money, I get cash flows back from my investments, usually on a quarterly basis. These ETFs are celebrated - especially on social media - as a form of passive income and have their advantages but also disadvantages, which we will examine in more detail below.

Dividends as a value premium (CAPM /French Fama model)

Short recap (in more detail in part 5): French Fama's 3 factor model raises beta (volatility), size- and value-premium as factors to determine the expected return of an investment. Dividends are not explicitly mentioned as a factor, but they are indirectly included in the value and beta factors, as a company must first be able to afford to pay dividends.

must first afford to pay dividends. Growth and small-cap companies

often do not yet pay dividends, as the revenue generated is used for more growth

growth or the balance sheets are not yet as sustainable. Dividend payers often have a stronger balance sheet, which makes them less volatile to changes in interest rates, for example (although this reduces the expected return according to the CAPM). Exceptions are high dividend payers, which are often riskier and reward investors with a high dividend for holding the share.

The fact that dividends also count as a quality factor can be clearly seen in the dividend aristocrats. These are companies that have been paying dividends continuously for 25 years and increase them annually. This makes them particularly attractive, which is why they can also be invested in via individual products such as the $SPYD (-1.1%) are investable.

Dividends are also included as a valuation factor in the Quality ETF as a positive valuation criterion (see also Index Methodology Part 1)

Historically, several studies for the US market show an outperformance of dividend stocks, especially even high dividend payers:

https://www.hartfordfunds.com/insights/market-perspectives/strategic-beta-etfs/what-drives-dividend-stock-performance.html

https://www.globalxetfs.com/content/files/High-Dividend-Stocks-In-Rising-Interest-Rate-Environments.pdf

In the recent past, however

However, high-dividend stocks have underperformed in the recent past, with the ACWI High

Dividend has significantly underperformed the MSCI ACWI over the last 10 years (- 100 %).

Classes of dividend ETF?

In my view, dividend ETFs can be roughly divided into 3 categories:

- Dividend as a windfall: The focus of the ETF is not on dividends, but some companies are included in the index that pay dividends and these are then distributed to the holder. A classic example is the dividend-paying $VWRL.

- Quality dividend: The focus is on achieving dividends, but these are accompanied by quality factors such as dividend aristocrats or quality dividend ETFs

- High Dividend: The highest dividend yields are targeted here, whereby quality factors may play less of a role.

Why high dividend yields can be a problem

Unfortunately, I have often overheard conversations that sound like: "VW is so cheap, you get a 10% dividend yield, you can't go wrong". But that brings us to the problem of high dividend yields, because these are often a signal of structural weakness in the company and/or a sharp fall in the share price. If the dividend yield remains at this level, this could seriously jeopardize the company's long-term financial strength. If the dividend yield remains

and is even reduced, the original investment case is invalidated.

So even if the unsystemic individual risk in ETFs often "diversifies away", it is important to take another look at the largest positions and check whether this is not a structurally weakening company.

Advantages of dividends

In addition to the potential value premium mentioned above, dividends fulfill a different purpose at an individual level, depending on the stage of life: for most people reading this, this purpose is likely to be psychological, as they are not dependent on the cash flow from dividends.

cash flow from dividends. The dividends are then a nice motivational effect and

offer the "peace of mind" of a steady income even in the event of market setbacks

and therefore less worry about declining book profits.

Once you have reached an advanced age, the dividend offers a high comfort factor. This means that there is often no need for rebalancing or a withdrawal plan, as would be the case with accumulating ETFs. The dividends are then used as additional income for retirement; of course, withdrawals can also be made, but not to the same extent as would be necessary with accumulating ETFs.

would be necessary.

Disadvantages of dividends

Taxes! Because payments are distributed to the holder, capital gains tax, solidarity surcharge (26.375% in total) and, if applicable, church tax are also due. This tax is first deducted before I can reinvest the dividends, and reinvesting the dividends costs extra (even with neobrokers via the spread between the ask and bid price). Dividends therefore have a detrimental effect on the compound interest effect of the ETF's profits.

Although accumulating ETFs have been brought somewhat into line with dividend ETFs in terms of taxation with the advance lump sum taxation, they still offer the advantage that the tax burden is always lower than for dividend payers (if the dividend ETF has distributed less than the advance lump sum, an advance lump sum is also charged).

Another negative aspect that goes hand in hand with the above is market timing. Often not every small dividend is reinvested directly, but accumulated until, for example, EUR 1,000 is reached in the clearing account. If the market has then run away, you wait for a setback and may miss the entry or at least lose the lost performance where the money was sitting in the settlement account without earning interest.

account without interest. There is also more work involved in the savings phase due to the necessary reinvestments.

Tax comparison high-dividend vs accumulating (example 2024)

Assumption that the tax-free amount has already been exhausted

Investment amount: 100,000

ETF1: Vanguard FTSE ACWI High Dividend ($VHYL (-0.85%))

ETF2: iShares MSCI ACWI ETF ($ISAC (-1.05%) )

Tax Burden High Dividend:

Price at the beginning of the year: EUR 57

Shares: 100,000 / 57 = 1,754.39

Dividend per share: EUR 1.94

Absolute dividends: EUR 3,403.51

Partial exemption ratio: 30%

Tax (26.375 %) = EUR 628.38

Tax burden accumulating ACWI

Fund value at the beginning of the year: EUR 100,000

Prime rate 2023 (for 2024): 2.55%

Base yield (70%): EUR 1,785

Partial exemption rate: 30%

Up-front lump sum: EUR 1,249.50

Tax (26.375%) = EUR 329.56

There is a tax disadvantage of around EUR 300, which is thus withdrawn from compound interest.

For whom are dividend ETFs worthwhile?

In summary, the disadvantages of strongly dividend-oriented investing outweigh the advantages for me. Of course, there are many shades of gray between focusing on high dividends and reinvesting. Dividends as an addition - especially as they often come with a premium - make perfect sense, but the explicit focus on high dividends can be dangerous and has tax disadvantages.

Dividend ETFs are therefore primarily for investors who want to generate income regardless of the current market phase and appreciate the stability of the cash flow. If the dividends also ensure that you can sleep better at night when the market fluctuates and are not tempted to panic sell, then the small tax disadvantage is no reason not to invest.

the small tax disadvantage is no reason not to invest in dividends. Also

It also has its charm to have a less intensive withdrawal phase in old age.

withdrawal phase. So if you are emotionally affected by market fluctuations, appreciate regular income and are convinced of the dividend premium (as part of the value premium), then dividend ETFs are just right for you.

👉Dividends-ETFs:

Performance comparisons incl. dividends

$VHYL (-0.85%) (World | TER 0, % | Tracking Difference -0.04 % | DivRendite 3 %| EUR 5 bn invested volume | 3Y underperformance vs. MSCI World - 5 %pt | 5Y underperformance vs. ACWI - 30 %pt | 10Y underperformance vs. ACWI -100%pt)

• Index methodology: Based on the FTSE All-World Index, which includes large and mid-cap companies from developed and emerging markets worldwide. REITs are excluded. Companies are sorted according to the expected 12-month dividend yield and the stocks with the highest dividend yield are selected. The aim is to achieve around 50% of the market capitalization of the original index and then to weight these companies according to their size in the index.

$TDIV (-0.08%) (World | TER 0.38 % | TD 0.47 % | Div yield 4.3 % | EUR 1.2 bn invested | 3Y outperformance vs. ACWI + 18 %pt | 5Y underperformance vs. ACWI - 7 %pt | 8Y underperformance vs. ACWI - 38%pt)

• Index methodology: Screening for consistent dividend payers with ESG relevance. Weighting by dividend max. 5% per share and max. 40% per sector. Selection of 100 stocks with the highest dividend yield. Semi-annual rebalancing

$SPYD (-1.1%) (US | TER 0.35 % | TD -0.07 % | Dividend yield 1.5 % | 3.5 bn invested | 3Y underperformance vs. S&P 500 -23 %pt | 5Y underperformance vs. S&P 500 - 63 %pt. | 10Y underperformance vs. S&P 500 - 283%pt.)

• Index methodology: Includes components of the S&P Composite 1500, then selects for companies with the highest dividend yield whose dividends have been increased for the last 20 consecutive years. Furthermore, minimum requirements for market capitalization and liquidity of the share must be met. Maximum weighting per share 4%.

$SPYW (-0.04%) (Europe | TER 0.30 % | TD -0.35 % | DivRendite 3.7 % | 3Y underperformance vs.

Eurostoxx 600 - 1 %pt. | 5Y underperformance vs. Eurostoxx 600 - 24 %pt | 10Y underperformance vs. Eurostoxx 600 - 28 %pt.)

• Index methodology: Based on the S&P Europe Broad Market Index, companies must have increased or maintained stable dividends for 10 consecutive years, selection of the 40 companies with the highest dividend yield and weighting accordingly. Max. 5 % per share, 30 % per country/sector.

Conclusion - what remains: A balanced strategy with dividends as an admixture can make sense, whereby the focus should be on quality dividends rather than high payouts.

#smartbeta
#etf
#dividende

$SPYD (-1.1%) my last outstanding dividend for this year has thus been announced

0.3522$ (currently 0.336€) - this means that the total distribution for this ETF for the year in € is down by approx. 3%.

https://www.ssga.com/ie/en_gb/intermediary/resources/documents/dividend-distributions

The popular $O (+0%) is currently the second largest position in this ETF with 2.18%.

Payment on 31.12. and then it's rum again with 2024 😅

The gray November showed what it can do. Rain, clouds, cold and wet. It was just the perfect weather for me to go hiking and ice bathing. Especially in the second half of the month, the temperatures headed towards freezing point. I was finally able to hike and ice bathe in temperatures that were perfect for toughening up. So while I was trudging through Saxon Switzerland in the first decent snow from sunrise to sunset and bathing in ice water at 1°C for two proud minutes, on the other side of the pond the newly elected president unleashed the "Trump wave", which lifted all our deposits and wallets. Time for a look back.

I present the following points for the past month of November 2024:

➡️ SHARES

➡️ ETFS

➡️ DISTRIBUTIONS

➡️ CASHBACK

➡️ AFTER-PURCHASES

➡️ P2P CREDITS

➡️ CRYPTO

➡️ WHAT IS REALLY IMPORTANT

➡️ OUTLOOK

➡️ Shares

$AVGO (-2.02%) , cooled off in terms of performance in the past month. Of course, its +169% is impressive, but the positions behind it are not sleeping. $NFLX (-1.3%) is close behind with +151%. This also applies to the volume invested. It's hard to believe that the streaming giant is doing so well. I didn't think the company would see such rosy times again. All due respect! Together with Netflix, it is also $WMT (-0.74%) in terms of volume and is already at +89% in terms of performance. I would hardly have expected such a boring business model to deliver such a stable performance. At the lower end $DHR (-0.94%) Dick is still in the red. For me, this is still the result of the unbundling. $NKE (-0.85%) and $TGT (-0.31%) have problems with their business figures and $OR (-1.4%) certainly also. I would be happy to add to this, if only I had significantly large sums to spare.

➡️ ETFs

I'll spare myself the typical "everyone has to have this" blah-blah-blah this time and my $VWRL (-1.05%) is the heavyweight of my entire securities portfolio at 13.41%. You know what I mean. The only thing I have to say is that financial education in Germany is still inadequate and something needs to be done about it. Now one party is stating in its platform that capital gains should be taxed as a secondary type of income like a main type of income. Such a demand is simply the result of a lack of financial education and - excuse my language - stupidity. For me, this party is absolutely unelectable. But that goes beyond the scope. Politics does not belong in my program, but perhaps there will be a separate post here about why I am ultimately an absolute fan of the capital gains tax - simple flat tax. Hopefully, more and more young people will join the capital markets and use their votes to ensure that left-wing non-performance-related blah-blah-blah will soon be a thing of the past. Because we must not leave Germany behind.

➡️ Dividends

I received 19 distributions on 8 payout days in November. I am grateful for this additional income stream. My minimum target has been met again. Even in this low-distribution month. I can therefore now safely increase the size of the reinvestment of the distributions. From next month, €105 will be reinvested instead of the planned €80. I have already explained how my reinvestment strategy works in a separate article. The snowball rolling down the slope is getting bigger and bigger.

➡️ Cashback

In November there was a small payout from the health insurance bonus program. Otherwise the month was poor in terms of cashback. But that will come again in December.

➡️ Subsequent purchases

Two small additional purchases were made to boost the cash flow in my old portfolios On November 7 and 8, small sums went into the $GGRP (-1.02%) and $SPYD (-1.1%) .

➡️ P2P loans

I want to continue to cut back and get rid of the two remaining platforms. Only Mintos and Peerberry are left. There has been no interest for a long time.

This asset class will soon be history for me

➡️ Crypto

Wow! What a month. The red Trump wave has really boosted my crypto portfolio. Can you still remember the days when $BTC (+3.6%) were bobbing around at under 70K? The price level was totally unusual. I'm wide awake now and haven't just been on the sidelines for a long time. I regularly check the prices and a few indicators. The first limit orders were already triggered at $xrp in November. At USD 1.10, this token was kicked out of my portfolio. Of course I could have done more, but I went home with a good profit. As I write now, the next limit orders will be triggered soon. I described how my strategy works, what assumptions I make and where I see the exits in great detail in two posts earlier this month. As of now, no subsequent dividend stock or dividend ETF has been bought from the proceeds, from whose dividends the additional purchases will be made in the new bear market. But I am sure that this will happen this year.

➡️ What is really important

Thanks to the automation of long-term wealth accumulation, there is enough time to focus on the important things in life. Because the end of it is sure to come.

With a healthy lifestyle, I want to delay the end as much as possible. And yet I'm currently thinking about who I want to leave my estate to at some point. It certainly won't be the state, it's already cashing in well on taxes. Regular readers can now imagine who might be in my favor. I'll have to deal with the subject of wills at some point. In any case, I want to sort it out somehow when I'm young, even if it's subject to change.

At the end of the month, I spent time with the kids again, whose father I would have liked to have been myself. The older one has now reached an age where she's slowly beginning to realize that she's not growing up in such good financial circumstances. After I made a firm commitment to her during our trip to Berlin to support her with her dreams and her future, I also took action. It is important to me to introduce the child to financial education step by step. My principle is not to encourage and challenge at the same time. Let's see how well I succeed, I'm certainly very optimistic.

➡️ Outlook

Why I have dollar signs in my eyes when I see my utility bill and where I'm donating some of my earnings in December, as well as the further course of my implemented crypto strategy, will be revealed in December. In any case, the month is full of excitement, as 2 more cryptocurrencies will soon be released from my wallet.

Links:

Social media links can be found in my profile, also feel free to check out the Instagram version of my review.

Hello everyone,

I would like to add a few stable dividend payers to my portfolio.

Currently I have $O (+0%) and $BLK (+0.52%)

I was thinking of investing in an ETF that specializes in high dividend yields instead of buying more individual shares. Also to reduce the risk.

Are there any recommendations from the community with good experiences?

I have currently looked at:

$SPYD (-1.1%) and $DHS (-1.1%)

I would appreciate some suggestions - thanks!

The trees are putting on their golden-yellow dress, it's getting rainy again and the temperatures are dropping. The golden fall is just around the corner. I take advantage of the cold by only taking cold showers and prepare myself for winter ice bathing. Over the next few days, I'll be swimming in cold water, avoiding hot showers like the plague. Meanwhile, the depot is running. Time for a look back.

I present the following points for the past month of September 2024:

➡️ SHARES

➡️ ETFS

➡️ DISTRIBUTIONS

➡️ CASHBACK

➡️ AFTER-PURCHASES

➡️ P2P CREDITS

➡️ CRYPTO

➡️ WHAT IS REALLY IMPORTANT

➡️ OUTLOOK

➡️ Shares

After the top of the class $AVGO (-2.02%) has deflated, it is now shifting up a few gears again. The +121% performance of $AVGO (-2.02%) increased to +178% last month. There is still some way to go to +200%, but perhaps I will soon have the first trebler in my portfolio. That puts me in a good mood! The heavyweight, which also accounts for the largest volume among the individual stocks in my share portfolio, is attracting other heavyweights such as $WMT (-0.74%) and $NFLX (-1.3%) behind it. The last few months have also seen $SAP (-1.55%) steadily risen in my portfolio and has now already reached 4th place, accompanied by $AAPL (-1.1%) . The former leader $NOVO B (-0.51%) continues to fall but is still performing well. There are also other stocks that are fighting their way up that I did not expect at the time. For example one $ABBV (-1.15%) or $BAC (-1.13%) .

If I look at the performance, I am also spoiled with great results behind the winner. $NFLX (-1.3%) shines with +98%, $NOVO B (-0.51%) with +74% and $SAP (-1.55%) with +72%. When I added the stocks to my portfolio, I would never have imagined that there would be any stocks in my gold box that could double. I'll probably have several of them next year.

And I'm not worried about the basement floor either, as the negative performances are constantly moving towards zero. Step by step. There was also a change in the order at the lower end due to additional purchases. My smallest positions by volume are now $CP (+0%) , $DHL (+0.09%) and $OR (-1.4%) in terms of performance they remain $NKE (-0.85%) , $DHR (-0.94%) and $CVX (-0.2%) o.

➡️ ETFs

My beloved core retirement savings unit is growing and growing. The biggest chunk, the $VWRL (-1.05%) already accounts for 13.4% of my entire securities portfolio. All I can say here is: stubbornly and steadily save a portion of your net salary every month in the boring bread-and-butter ETFs by standing order and savings plans, then you can successfully escape the monster of old-age poverty. In my opinion, everyone should do this. I'm a fan of distributions because they provide a steady additional income. And by saving continuously, this income increases. I also promote this in my private circle. I think it's a shame that so many people respond to my efforts to raise awareness with "Yes, but ...". By constantly hiding behind excuses that are always the same, people are driving themselves into poverty in old age. Even worse are those who think shares (or securities in general) are the devil's plaything and moan about pensions. On the one hand, they don't understand how the pay-as-you-go system really works, and on the other, they completely lack basic financial education. They think they are throwing money into a certain pot from which they can later withdraw. Interestingly, this is only the case with their own portfolio, not with the state pension.

In addition to broadly diversified standard ETFs, I like to put unplanned inflows into dividend ETFs. I want cash flow that will one day cover my living expenses.

➡️ Dividends

I received 33 distributions on 14 payout days in September. I am grateful for this additional income stream.

Unfortunately, I didn't manage to write the extra article I announced in my last post about how I deal with reinvestments last month. This is planned for this month. My plans $UPS (-0.77%) and $HTGC (-0.04%) into the savings plans remains in place. I already teased this in the last review.

➡️ Cashback

In September, I received a €40 voucher for scanning my daily purchases, which I used to buy overhead headphones that had been on my watchlist for a while. In line with my cashback procedure, I deducted the equivalent value of the voucher in euros from the corresponding provision and transferred it to the exchange. In this way, I use the benefit of the voucher as productive capital instead of just consuming more like others. My budgets for wear and tear and provisions are thus adhered to and the benefit indirectly finances my asset accumulation.

➡️ Subsequent purchases

Thanks to a small bonus, reimbursements from health insurance and supplementary dental insurance and the aforementioned voucher, I was able to make several additional purchases last month. These include the additional purchase of 2 $UPS (-0.77%) and 6 $HTGC (-0.04%) shares as individual additional purchases. I am convinced by both companies. I also invested €27 in the one-off savings plans $SPYD (-1.1%) , €49 in the $TDIV (-0.08%) and €44 in the $FGEQ (-1.04%) invested. Simply to increase the cash flow from the investments. Bit by bit, the tap is being turned on further and further.

➡️ P2P loans

Over a long period of time, I have managed to reduce the amount of defaulted loans on my remaining platforms to a double or single-digit sum. All the rest has been withdrawn. Of course, no progress has been made with interest or redemption payments. I wish the operators would simply write off the rest without replacement so that I could ditch all the platforms. Bondora Go & Grow is an exception to this rule. This is running smoothly, but I'm not putting any new funds into it, I'm just letting it run.

➡️ Crypto

I'm not currently doing anything here. I advise everyone to study the debt cycle and the crypto cycle in order to understand price movements in the long term.

➡️ What is really important

I was on vacation at the end of the month into October, so I spent time with my ex's kids, whose social father I was allowed to be one. First I spent several days with the kids and my ex. I went out in the evenings with the older teenage girl, mainly to give her the attention she was looking for so that she could be the focus of attention herself. In October, we spontaneously went to the capital for a few days at the child's request. This kind of time together with all the experiences helps to strengthen and rebuild the bond, which has of course suffered in recent years, for example due to physical separation. There have been so many great moments over the years, both in the province and in the big city. Enjoying the peace and quiet in the evenings with a great view, listening to what moves her and then the trip to the metropolis with its light and dark sides. And so much more.

Why am I writing this? Because it's moments like these that make life worth living and give us strength in dark times. This is even more valuable than our beloved topics of finance and investment.

➡️ Outlook

The year-end spurt begins very soon. I am hoping for price magic like last year. But the crypto cycle will be even more exciting, as we expect prices to skyrocket at the turn of the year.

Left:

Instagram profile with review: https://www.instagram.com/frugalfreisein/

Threads: https://www.threads.net/@frugalfreisein

X Profile: https://x.com/frugalfreisein

Let's Go :)

From next month, the ETF will be permanently saved with €250.

Summer has begun, July is over. Summer at last. Because the weather had it all last month. It was cool and raining, not just the typical rain, but also a good dividend. It was as if a power station was releasing money into the sky that was raining down on us all. My figures clearly show why this fantasy is not so far-fetched. Time for a look back.

I present the following points for the month of June 2024:

1. equities

2. ETFs

3. distributions

4. cashback

5. p2p loans

6. crypto

7. donation

8. further thoughts

9. outlook

➡️ Shares

Wow! Once again, the top positions are rallying like there's no tomorrow.

With a fabulous +178%, my portfolio shines $AVGO (-2.02%) in my portfolio. That's another 30% more than in the previous month. The model student is not only the performance winner, but also the heavyweight in terms of portfolio volume among the individual stocks. I am looking forward to the upcoming stock split, as I assume that this will drive the share price up again, even if the share is trading at a P/E ratio of 70+. My "best flop stocks" have turned further negative again and are now at the bottom of the chain. $NKE (-0.85%) at the bottom of the chain. I am now using the share price weakness resulting from the profit warning to my own advantage by deliberately investing some reinvested dividends in the savings plan. I think the share will take a while and will now tend to return to the COVID level. However, there is no question that Nike is a strong brand, as I saw last Monday when I saw six pairs of Nike shoes standing outside the neighbors' door. They did a good job!

➡️ ETFs

There's not much to say about ETFs, except that they do what they're supposed to do. Stubbornly and steadily growing and throwing off a few thalers on the side. Last month in particular, they made a significant contribution to my record dividend with a 47% share, although they only account for 37.3% of the securities portfolio.

In general, I can recommend broadly diversified ETFs to anyone who wants to build up assets and another income stream. And it should be clear to everyone that this is not an option or a "can do", but a must because of the threat of poverty in old age.

➡️ Distributions

I was able to collect 31 distributions on 14 payout days in June. I am very grateful for that! This time, the large ETFs and the $VNA (+0.02%) were very important.

June was very strong in terms of dividends. Compared to the previous month, there were over 1.5 times more distributions. The same indicator compared to the same month last year, June 2023. In addition, it has already exceeded the entire 2nd year on the stock market by 1.7 to 1.8 times in dividends. Incidentally, I have been building up assets for 4 years and a month, even though my oldest old portfolio has existed for longer, before that it was only without holdings.

I am keeping a close eye on the development of dividends. Especially in the coming months, which will be poorer in dividends except for September and December. If I exceed my plan size of €80 several times, then I will pull this figure into reinvestments in the savings plans from dividends and will $UPS (-0.77%) into the savings plans. It's great when another savings plan is financed solely from returns. That puts you in a good mood! And it shows that patience and constant monthly investments in the capital market pay off in the long term.

➡️ Cashback

In June, I redeemed Payback points for €11 and put the equivalent value from my grocery account into a $SPYD (-1.1%) one-off savings plan. I prefer this method to having the points paid out. This way, I avoid spending more than planned or necessary.

➡️ P2P loans

With the exception of Bondora Go&Grow, there are no interest or redemption payments on any of the platforms. On EstateGuru, I was able to sell three out of four projects on the secondary market at a loss. I'd rather get the rest out and quickly ditch the platform before they come up with the idea of charging me the newly introduced fee. I have lost all confidence in this asset class. I will also liquidate Go & Grow as soon as all other platforms are history for me.

➡️ Crypto

Bitcoin must have run out of steam? No, we know that the payouts and sales of Mt. Gox $BTC (+3.6%) and that of the BKA from the seizure of movie2k (I think) are influencing the price here. Then there is the classic summer slump. If the incipient bull market is now over, then this asset class would also be in the garbage can for me. In any case, for me it almost is, because in the end this asset class does not yield any euros in a clearing account. Staking doesn't count either, because $ETH (+2.38%) I still can't pay any bills from inflows. I'm sticking to my strategy here and paying attention to the debt and crypto cycle.

The FED and the other central banks have to print money again. Why is that? Because in a cycle of 4 years, government debt falls due again and has to be repaid. To do this, the states have to take on new debt again, so they print money again by issuing bonds. That's what I mean when I talk about the money printing spree here at getquin and in X or threads. And where does this freshly printed money go? Into real assets, of course, including crypto. That's why the BTC price is rising so much. Again, this has nothing to do with the halving, as this event was priced in and was not a surprise. And in my opinion, you can play this cycle if you are in crypto, as an alternative to HODL. I'm doing it anyway and that's exactly why I'll gradually cash out when my desired prices are reached. I won't hit the top anyway, but I'll go home with a profit. The proceeds then flow into dividend-paying shares and I use their dividends in the next bear market to gradually build up my holdings again. At some point, this will also be over, as the increases in #btc in the bull market become weaker and weaker. However, the system described is not investment advice, but only my layman's assessment; I could be completely wrong! Do your own research.

➡️ Donation

I donated a small part of my tax refund to Wilde Wälder gGmbH. This project appealed to me because, to put it simply, it buys up or auctions forest areas to enable them to regenerate by leaving them to their own devices. As a passionate hiker, the forest is important to me, as I can really switch off in it far away from civilization. And there is certainly no question that we have too few forest areas.

I am not being paid for this information, I mention it out of conviction and I think you should take a look at the project. In my opinion, getting involved here is a real contribution to climate and forest protection, in contrast to sticking yourself to the streets or smearing paintings.

➡️ Further thoughts

The state pension is not secure, anyone who relies on it is doomed! I can't shout this out into the world often enough! The (equity) ETF and equity pension, on the other hand, are safe as long as you rely on the certainly boring but broadly diversified "bread and butter ETFs" and on stable and globally used companies. No themed ETFs, no gambler stocks or penny stocks! Numerous studies have shown this. All you have to do is invest stubbornly and steadily in the stock market on a broadly diversified basis every month over a long period of decades.

We all need to do our bit to make the average German realize how well suited broadly diversified ETFs and blue-chip shares are for retirement provision. After all, the average citizen is currently being bombarded by left-wing redistributionist ideology, which teaches them that shareholders are just rich people who are evil, responsible for everything bad and that society can no longer afford them. The image of the small shareholder who wants to plug his pension gap or the ordinary citizen who wants to build up another income stream does not exist among them. They only believe that the state will take care of them. And so citizens lose their own sense of responsibility for their own pension provision. My conclusion is that we can no longer afford the left, because they want to incapacitate citizens, make them lose their sense of personal responsibility and feed them with handouts from the state (such as citizens' income and UBI) in order to make them dependent on the state. But it doesn't work that way; the service providers who finance the state are increasingly fed up. And everything depends on them. They deserve more respect and recognition!

If everyone invested a broad spread of their salary each month, then poverty in old age would not be an issue! We simply have the wrong narrative in Germany and this is leading to the country's further decline. And the media are playing their part in this catastrophic development, expressed in the general media coverage and through statements by many celebrities who are financed by our GEZ contributions.

I want to make my contribution to a rethink here, so that people who are successful are not envied, but are asked how they can make it and what steps they need to take. And, of course, that you also tackle these, leave your comfort zone and grow beyond yourself.

➡️ Outlook

Some of the dividends from June have been left over. You can find out what I reinvested them in in next month's review. I wish you all a great summer!

Links:

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• Instagram profile: https://instagram.com/frugalfreisein?igshid=YmMyMTA2M2Y=
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• Threads: https://www.threads.net/@frugalfreisein

Spring is in full swing, my tomato plants are flowering and soon there will be delicious "yields". Time for a look back at May.

➡️ Shares

With an incredible +148% $AVGO (-2.02%) in my portfolio. The model student is not only the performance winner, but also the heavyweight in terms of portfolio volume among the individual shares. The share has long since cracked the €1,300 mark in terms of volume and is continuing its journey. I am not letting this horse out of the stable á la Beate Sander. I could well imagine that a split is imminent here, after the $NVDA (-1.56%) recently completed. Otherwise there is hardly any news, the performance of the good stocks continues to rise and the negative performance of my flop stocks is steadily improving. Thus $DHR (-0.94%) only at -24% instead of -30%. That's how it has to be. You can just feel a moderate wave lifting the boats. In favor of the ETFs, I will leave the comments on the stocks short this time.

➡️ ETFs

With this review, I'm going to take a closer look at my ETFs. I originally started with a 50/30/20 strategy on the MSCI World, EM and Europe, which I later supplemented with an Immo and Small Cap ETF. So the MSCI World with the MSCI EM ETF formed the core portfolio and the other ETFs were small satellites around it.

As these were almost all accumulators at the time and I quickly realized that I could build up additional income by saving in distributing ETFs, I quickly said goodbye to the accumulators. I also moved my ETF custody account to a neobroker. This is where I now manage my large ETF portfolio, which will form the absolute basis of my retirement provision. So if the dividends are not enough, or if I have to sell the portfolio and a sale is unavoidable, then the shares will be sold off piece by piece first and the ETFs will only be touched later. This portfolio contains the $VWRL (-1.05%) , $VHYL (-0.85%) , $VUSA (-1.17%) , $ISPA (-0.33%) , $IMEU (-0.17%) and $IWDP (-0.74%) . The current portfolio content consisting of an All World ETF and geographic and/or thematic shear points around it does further justice to the core-satellite concept. All these ETFs are saved monthly and all pay out dividends.

My first old portfolio naturally still contains residual holdings. These have been converted into distributing ones where appropriate and are shown in detail in the $EXXT (-1.39%) , $ZPRG (-0.78%) , $ISPA (-0.33%) , $SPYW (-0.04%) , $SPYD (-1.1%) . The portfolio volume is in the four-digit range. The $ZPRG (-0.78%) is saved. Further cashback flows into one-off savings plans, which replenish one of the other positions. The core task of this portfolio is to generate cash flow, so share price growth is less important to me. I am currently reinvesting the distributions. I could also imagine diverting this as a boost to my nest egg, as a kind of "inflation compensation". It's good that you can set up savings plans and standing orders at the click of a mouse these days, which gives me the flexibility that I base this portfolio on.

My second old custody account used to be the main custody account for the shares, which have long since been with a neobroker and are saved there. I bought two new ETFs here in May, which I also save a small amount of money in each month. They are the $FGEQ (-1.04%) and $TDIV (-0.08%) . Here I have the same idea as above. Simply generate cash flow that is reinvested but can be used in other ways if necessary, e.g. to contribute to my fixed cost lump sum.

I can certainly simplify my ETF portfolios considerably and close the old portfolios completely. But I don't want to and won't do that. It's a great feeling when money rains down from the sky every month on all banks/brokers. I want to retain the flexibility of multiple brokers so that I can react quickly if a broker cancels my contract (for whatever reason). In addition, operating this infrastructure does not cost me any fees.

➡️ Distributions

I received 21 distributions on 10 payout days in May. This time, the German values also fell $SAP (-1.55%) and $DHL (+0.09%) to book. May was strong in terms of dividends and was almost on a par with June last year. With the past month, I am already well above the dividend that I expect on average according to my planning.

Outlook: According to my forecast thanks to GQ, June 2024 will eclipse everything by far. Depending on the distributions in the fall, I may be able to increase the size of my planned dividend reinvestment. That puts me in a good mood!

➡️ Cashback

I found a few returnable bottles and cans along the way while hiking and on the way home. Especially on men's day. Without me actively looking for them. The deposit was taken away these days. I may invest the proceeds once again in $SOL (+4.63%) invest it again.

I haven't redeemed any Payback points this month, but I have been busy collecting them.

➡️ P2P loans

With the exception of Bondora Go&Grow, the interest and redemption stream has now dried up on all platforms. EstateGuru also abruptly introduced a new price list at the end of the month, to the detriment of us investors of course. I didn't like this and it only confirms my intention to exit this asset class. There will be news here next month.

➡️ Crypto

It's a case of wait and see. There is no other way to describe the situation. A look at the $BTC (+3.6%) -price shows the sideways movement and resistance at USD 71K. We must remain patient.

➡️ Outlook

The tax refund is on its way and will be invested. Part of it will even be donated. You'll find out what next month. I might also introduce you to a great project that is definitely worth donating to.