Xtrackers AI and Big Data ETF

Hello everyone,

I have recently started investing and would like to hear your opinions on my investment strategy.

I can save around €3,000 per month. I invest €2,000 of this in ETF savings plans:

• 700 € in the FTSE All-World $VWRL (+0.18%)
• 
  1,000 € in the S&P 500 Core $CSPX (+0.32%)
• 
  100 € in the VanEck Semiconductor $IE00BMC38736 (+0.79%)
• 
  100 € in the S&P 500 Info Tech $IUIT (+0.28%)
• 
  100 € in the Xtrackers Artificial Intelligence $XAIX (+0.11%)

I also invest €1,000 per month in growth stocks.

I am aware that some sectors in my ETFs and even shares overlap. However, as I am deliberately aiming for an overweight in the tech sector, I am following this strategy.

I look forward to your feedback and advice! #etfs
#stockanalysis
#tech
#investing
#growth

Big data and AI: from vision to reality

Inflation, recession, interest rate policy: while many investors may be unsettled by current developments, two megatrends are continuing their unstoppable path - big data and artificial intelligence.

Find out in the following article how these growth areas of digitalization are changing our lives and how you can benefit from the growth of these future markets with targeted thematic ETFs.

___________________________

Big data and artificial intelligence are among the most important megatrends of our time. What sounded like visions of the future just a few years ago is increasingly becoming reality today. A vivid example: a US company recently presented humanoid robots that not only perform simple tasks, but could soon make autonomous decisions in complex environments. What once seemed like science fiction is now becoming tangible and seems to be gaining speed. Although artificial intelligence (AI) is not a new concept, technological advances have noticeably accelerated its development in recent years.

Some people may ask themselves in their own workplace whether the hype surrounding artificial intelligence is really justified. After all, the efficiency gains from a few AI-suggested or language-optimized emails do not provide a quantum leap in everyday working life. But while the changes may still seem subtle in some areas, the true breakthrough of AI is already clearly evident in other sectors. In healthcare in particular, we are seeing how big data and artificial intelligence can revolutionize entire processes. By analyzing huge amounts of data, AI systems can now make precise diagnoses. This not only saves time and money, but can also save lives.

The exponential progress of modern processor chips also plays a decisive role here. Microchips double their performance roughly every two years - a development that makes it possible for AI systems to be so powerful today. A modern graphics card now has more computing power than a supercomputer 20 years ago. These technological leaps form the foundation for many of the groundbreaking applications we see today.

Of course, not everyone is affected by these advances to the same extent. Many may only notice small changes in their everyday lives - such as an optimized working environment or more efficient processes. But investors have the opportunity to participate in these major developments via the stock market, regardless of how much they affect their own everyday lives.

For those who do not want to search for the most promising companies themselves, so-called thematic ETFs offer an easier way to participate in the potential of megatrends. These ETFs bundle companies that focus specifically on promising technologies such as AI and big data. The rise in the global offering of thematic funds shows that these products are enjoying great popularity: while there were only 110 such funds in 2016, the number had increased sixfold to over 650 by 2023.

Xtrackers also offers investors the opportunity to benefit specifically from the megatrends of global digitalization.

The Xtrackers Artificial Intelligence & Big Data ($XAIX) (+0.11%) already manages a fund volume of almost 3.5 billion euros. Investors can invest in companies that deal with artificial intelligence, big data and cybersecurity - from small innovators to global technology giants. Around 83% of the ETF portfolio is invested in the USA, the center of technological innovation (as of November 2024).

For investors who already hold a broadly diversified ETF portfolio but are also looking for targeted exposure to AI and big data, the ETF listed could be considered as an addition to the existing portfolio.

For more information, please visit our website: Xtrackers.de

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Product risks:

The funds are not capital protected. The value of your investment may fall as well as rise. Past performance is not a reliable indicator of future performance. The fund has exposure to less economically developed countries (also known as emerging markets), which are associated with greater risks than developed economies. Political unrest and economic downturns are more likely to occur and may affect the value of your investment. The value of an equity investment depends on a number of factors, including market conditions, current economic conditions, industry, geographic region and political events. The Fund focuses on a single or small number of sector(s), industry(ies) or type(s) of company and performance may not reflect the performance of broader markets. The Fund invests in small and mid-capitalization companies. This may entail higher risks compared to investments in larger capitalization companies. The shares may be less liquid and more exposed to price fluctuations (or volatility), which may affect the value of your investment. The fund is subject to currency risk. Currency markets can be very volatile. Sharp price fluctuations can occur on currency markets within very short periods of time and may result in a loss on your investment.

IMPORTANT NOTES

All opinions expressed reflect current views, which are subject to change without notice. Forecasts are based on assumptions, estimates, opinions and hypothetical models or analyses that may prove to be incorrect or inaccurate. Past performance is not a reliable indicator of future performance.

DWS International GmbH, 28.10.2024, CRS: 103353

Hi, I'm still very much at the beginning. Should I $XAIX (+0.11%) from my portfolio and put everything in the $IWDA (+0.23%) put everything in the 😊

I once heard about 70/30 and that's why I had a bit of savings in it. But it's actually just a hype ETF.

Hello dear Gequin Community,

I am currently working on restructuring my portfolio. Historically, I currently have a few funds and a number of individual shares.

I would like to switch the funds to ETFs and continue to save in them.

Classically, I would now select the following ETFs:

$VWCE (+0.17%) / $VHYL (+0.11%) and $VFEG (-0.02%)

Now my little thought experiment: Why should I limit myself to three ETFS when I could spread the whole thing much more widely? I have also thought about something like this (with smaller sums, of course):

$WELS (+0.09%)

$ECOG (+0.18%)

$EXH5 (-0.6%)

$CHIP (+0.77%)

$DFEN (+0.31%)

$XDWF (+0.15%)

$RBOT (+0.44%)

$XAIX (+0.11%)

$IH2O (-0.23%)

$WELW (-0.67%)

Of course I have a few duplications here, but I am much more differentiated.

Does this approach make sense in your eyes or is it a modest idea?

$XAIX (+0.11%) 30% What is your opinion of the ETF in combination with the $IWDA (+0.23%) 70%?😊

Hello everyone,

I would also like to introduce myself and my portfolio briefly and concisely.

I've been a silent reader for a few months now. Now it's time to reveal a bit about myself.

About me:

My name is Sebastian, I'm 30 years old and I live in Bavaria. I live with my girlfriend in a house I inherited from my parents. I work in the business world as a mechanical engineer.

I can't say exactly when I started investing. I probably started about 4-5 years ago by participating in share bonus programs through my work. Otherwise, my investments have been steadily increasing since the coronavirus era. I was mainly triggered by Finfluencer. There are good and bad things about that. Good: I started investing. Bad: I bought a lot of things stupidly/blindly. I'm now trying to straighten that out and no longer follow such people.

Monthly savings rate approx. 2.5 to 3.0 k€.

I am not fully invested. I have and will continue to have a good cash position.

About the portfolio:

The aim is to create a healthy mix of growth, dividends (growth) and a stable, healthy basis. The dividends also serve somewhat as a "bonus".

As mentioned above, I have (or had) some stocks in my portfolio that I was/am not satisfied with and which I have therefore recently cleaned out and reallocated the freed-up capital. The reorganization process is still ongoing. Roughly speaking, I would generally like to have fewer individual stocks in my portfolio and will shift the weighting to ETFs.

About the individual stocks in the portfolio:

• $IUIT (+0.28%) This is a pillar of my portfolio. It runs with a monthly savings plan for €1000. The idea behind it is an ETF that gives me a good return and ideally outperforms "world ETFs". Sure, it's an ETF from one sector, but I think that's fine. The savings plan will continue to run.
• $HMWO (+0.26%) Also a pillar of my portfolio. Runs with a monthly savings plan for €1000. My selected "World ETF". Savings plan will continue to run.
• $XAIX (+0.11%) I am unsure about this. Also a sector ETF. Runs with a savings plan of €250 per month. Also technology-heavy. I'm thinking about cashing it out to compensate for the losses and to take profits from the current tech hype.
• $SHL (-1.01%) Largest single share position. Created through the share program mentioned above. 250€ monthly savings installment. The shares are sold selectively as soon as all the conditions of the program have been met and I have received maximum bonuses. I then switch directly to other stocks so that the SHL position does not become too large.
• $KO (-0.4%) It has recently become a pillar of my portfolio. Dividend growth, acceptable share price growth, few fluctuations. I like it. Will not be expanded for the time being.
• $MCD (-0.31%) See CoCa Cola. Has recently become a pillar of my portfolio. Dividend growth, acceptable share price growth, few fluctuations. I like it. I also see the share as strong in the real estate sector. Falling interest rates could trigger another good move here. Will not be expanded for the time being.
• $GOOGL (+0.94%) difficult. It has performed well, but is now considering realizing profits. Through my ETFs. I already have this stock indirectly in my portfolio. However, I have deliberately increased the weighting of this individual stock in my portfolio. Rather than buying more, I would rather take profits. However, I would add to it again after a correction.
• $MC (-0.25%) To be further expanded. Target 10k in the portfolio. I used the last small price slide as an additional purchase. Long-term investment. Will be bought at the next opportunity.
• $AMZN (+0.26%) See Google. I already have this stock indirectly in my portfolio. However, I have deliberately increased the weighting of this individual stock in my portfolio. Rather than buying more, more profit-taking. However, I would add to it again after a correction.
• $JNJ (+0.03%) To be further expanded. Target 10k in the portfolio. Dividend growth, acceptable share price growth, few fluctuations. I like it.
• $PG (-1.24%) Recently added to the portfolio. This stock should give the portfolio further stability. Target of €10k in the portfolio.
• $V (-0.14%) Recently added to the portfolio. This value should give the portfolio further stability. Target of €10k in the portfolio.
• $NKE (-6.85%) Difficult position. The recent dip was hard. Outlook also not good, if not bad. As things stand, I would like to sell this share. But I am reluctant to sell with a loss of just under € 1k. I will probably hold on for a while and then decide objectively. I had invested a little here after the dip in order to take advantage of a potential countermovement. I could have saved myself the trouble...
• $BLK and $TROW (+1.25%) same segment. I would like to decide on a share here and then expand it into a pillar of my portfolio. But which of the two...?
• $SBUX (-1.55%) Doesn't really fit into the portfolio anymore. The outlook isn't great either. I will probably sell it at +-0€ and shift the capital into a position to be expanded.
• $MPW (+1.92%) Legacy and memorial! Will continue untouched for now.

Of course, there have also been some failures so far, some of which have depressed performance considerably.

Any examples?

$YSN (+1.42%) : -36,80%

$PLUG (+9.5%) : -61,58%

$PYPL (-0.38%) : -14.68% (good luck for bad luck...)

$NKE (-6.85%) and $MPW (+1.92%) can probably be counted as well.

That's it. It has become a smaller wall of text. Sorry for that.

Feel free to give me feedback on my thoughts and the portfolio.

Have a nice weekend everyone!