iShares Russell 2000 ETF Forum

Hello community.

As some of you have already noticed, the grandpa is very dividend-oriented and cash flow is the maxim. My portfolio with currently just under 250k consists of 64% equities, 21% Bund and US short-dated bonds, some ETFs, some bonus certificates and physical gold. As the majority of my income comes from interest, dividends and rental income, I have been able to live very well with my additional high cash holdings from overnight and fixed-term deposits. Slowly but surely, this comfortable time is coming to an end for a security-conscious old man and he is starting to rethink and restructure. I may be 60 and no longer have a long-term investment horizon, but I can still plan for the medium term of 5 to 10 years. 250k is still tied up for 1 to 4 years at good fixed deposit interest rates for me (3.8 to 4.5%) with an annual payout. Now ING has come across me and is offering 3.3% overnight money via an extra account for 6 months, which I'll take. The free custody account too. And that brings us to the topic. I put 150k in the call money account (yes, I know deposit protection) and set up savings plans on ETFs with 8k per month for the next 1.5 years.

Of course I can't get away from cash flow completely, but a little growth with a manageable sum can't hurt. The basic idea is 50% in the world, 20% in dividends, 10% emerging, 10% Europe and 10% Russel.

US should already be appropriately weighted, I am not directly invested in tech, this should improve via world ETFs and I would also like to consider the rest of the world and a few dividends.

I have made the following pre-selection (as I said, it's about 8K per month in the savings plan):

50% world, half of this in $XDWL (+0.79%) and the other half in$HMWO (+0.78%) . Both very similarly structured, TER ok, both distributing, but in different months.

20% dividend ETF, half of which is in $TDIV (-0.67%) and the other in $SEDY (-2.7%) The latter one-fifth in China, the risk is manageable, otherwise a bit of a watering can and overall a small US share in both, which I cover via direct investments as I said.

10% in $IMEU (-0.89%) which covers areas in which I have no exposure apart from $NOVO B (+0.73%) and $HSBA (-2.41%) I have no positions worth mentioning.

10% in $HMEF (-1.97%) China, yes over 20%, the rest is ok for me and also includes information technology and financial services, which are very underrepresented in my portfolio.

10% in $IWM (+1.43%) I am sticking to my US weighting and speculating on further effects from future interest rate cuts, even if some of this has already been priced in.

Finally, I would like to point out that I am not interested in the decimal place of the TER.

Overnight money will yield significantly less in the near future, growth does not harm my investment strategy, but it does not have to be the maximum return that can be achieved.

Putting everything into dividend stocks is suboptimal, so why not go "relatively risk-reduced" into ETFs in the medium term with part of my money.

Please give me your valued opinion on the approach and the chosen stocks, thanks for reading and have a sunny weekend.

Your dividend topi

https://www.tradingview.com/x/vmTtaCeS/

New trading position for the EOY rally. I think the trunk can break out soon.

Weekly Thoughts on The Market - Countercyclical Investment Opportunity?

Hello everyone 👋🏻

This week there was a very interesting wall street betting podcast with a community known trader. (Callout @monchella
https://podcasts.apple.com/de/podcast/mauerstrassenwetten/id1572657389?i=1000533215197 )

One of his statements that was surprising to me was that we were currently in a sideways market. Huh? Everything is going to the moon right now, every index is chasing from ATH to ATH. How can that be?

The answer is relatively simple. As a trader, he is always looking for momentum, for big daily percentages, post-volatile stocks. And so sooner or later ends up with small cap stocks. A look at the small cap index 🐘2000 shows that they are actually going sideways since February. https://finance.yahoo.com/quote/%5ERUT?p=^RUT&.tsrc=fin-srch This is hardly surprising after a breathtaking rally last fall/winter.

It's an interesting development. And for investors/traders, with an intermediate time horizon of months or quarters (as is also the case for me, as I am mainly interested in Earnings, Macro Movements, Political Events etc. & in this area quarters are a natural rhythm) will consider if there is a way to generate alpha here by investing countercyclically.

I once compiled the YTD performance of various baskets using python.

As expected, gold had a 0 correlation with the market and bonds had a slightly negative correlation with the market. This is relieving for now, as it still looks for a "normal" investing environment.

I find it interesting that the steel thesis of Arcelor Mittal $MT and Cleveland-Cliffs $CLF correlates so strongly with the overall market. My subjective impression so far has been that steel is responding more strongly to Jpow's "inflation is transitory". Semiconductor manufacturers are reacting more strongly to inflation.

The small caps correlated strongly negatively with the S&P500 in 2021. However, I have added $ARKK and $ARKG to the basket at ⛵️. This brings the whole basket closer to the volatile growth stocks of the traders, but also makes the negative correlation look more extreme, since they have run negative YTD.

I conclude that the steel gang (or value/dividend investors) can hedge their portfolio well with chip makers or small cap growth stocks in the current market environment. Steel benefits from inflation, chips & small caps benefit from passing.

Now might be a good time to rebalance into more small caps to frontrun a reversion-to-the-mean over the next 6 months. Or maybe not - stocks go up, down, sideways or in fucking loops. No one can see into the future.

Have a nice Saturday you 🤠

What do you think such an ETF...Derived from the Russell 2000 Index...Daytrading possible..?