1Yr·

Hello dear community,

I would like to start saving in an ETF (accumulating). The idea would be to let the interest work for me for as long as possible in order to have a good cushion when I retire (30+ years).

I am currently comparing $IWDA (-0.23%) and $SPXS (-0.25%) .

What are your opinions on these two options and do you have any other ETF suggestions?

30 Comments

Marco@Marco_91

1Yr

Hello @equity_enthusiast_54 Very good approach! Personally, the S&P 500 would be too much America for me (approx. 97%). Of course it has done well in the past but I would rather go for Msci World + Emerging markets - e.g. 70/30 weighting.

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View all 10 further answers

Ella M.@DividendenWaschbaer

1Yr

Why the $SPXS? Is there a special reason for this?

Just asking because it "only" synthetically emulates.

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Vik@equity_enthusiast_54

1Yr

Hi @DividendenWaschbaer, that's a good question. I believe that the tracking error is lower with synthetic mappings than with physical mappings. For this reason, and a recommendation from a friend, I ended up with this ETF, but am open to alternatives.

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Ella M.@DividendenWaschbaer

1Yr

@equity_enthusiast_54 Well, I'll be ordering the $VUAG

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Vik@equity_enthusiast_54

1Yr

@DividendenWaschbaer very interesting, also has a significantly higher fund volume than $SPXS. Are you saving in this as your only ETF or another one to counteract the dependency on America?

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Ella M.@DividendenWaschbaer

1Yr

@equity_enthusiast_54 I have separated my individual shares and my ETF portfolio and both run independently of each other.

The S&P500 is saved as a support for later health insurance contributions.

You can see the other ETFs in my portfolio. The $HMWO is only fed with dividends on a quarterly basis.

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Vik@equity_enthusiast_54

1Yr

@DividendenWaschbaer Thank you very much for your input!

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EdoTensei@EdoT

1Yr

$VWCE also worth considering :D

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Vik@equity_enthusiast_54

1Yr

Hello @EdoT Thank you for your input. Are there any arguments that make $VWCE more attractive than $IWDA? Although the latter has a lower dependency on America, it has a significantly lower fund volume.

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EdoTensei@EdoT

1Yr

@equity_enthusiast_54 both ETFs don't really have anything in common :D was just a little tip to have a look at them. The $VWCE is a bit more broadly diversified in emerging countries, also has a small proportion of small caps which $IWDA doesn't have as far as I know, but as I said it doesn't take much :)

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Stulle 🥪@Stullen-Portfolio

1Yr

@equity_enthusiast_54
The fund volume should not concern you too much...It is completely irrelevant from 500 million at the latest, most experts even say from 100 million.

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Luffy@Luffy3D2Y

1Yr

I believe that the USA will continue to have the most important companies in the world. Therefore, all in $SPY5 or the accumulating ones.

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Vik@equity_enthusiast_54

1Yr

Hi @Luffy3D2Y It's quite possible that your assumption is correct. Of course, no one can know exactly what the world will look like in 30+ years. Thanks for your input!

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TheGuardian@TheGuardian

1Yr

S&P 500 - so called „World“ ETFs and other markets still follow US indices.

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Vik@equity_enthusiast_54

1Yr

Hi @TheGuardian, thank you for your input. You are right, most global ETFs are heavily exposed to the US markets (50% or more). In my opinion, this is not necessarily a bad thing. However, I understand that broader diversification leads to more stable performance.

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TheGuardian@TheGuardian

1Yr

@equity_enthusiast_54 I repeat from my other answers - I don’t believe in diversification just for the sake of it. S&P 500 -> 500 companies - World ETFs lower weighted with more than 1000 companies. So, dilution is what you get with diversification unless there is a strategy. I have 30+ years to look to and in that time I would focus on growth for half of that time before going defensive

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Vik@equity_enthusiast_54

1Yr

@TheGuardian I understand what you are saying. I think your approach makes sense. I still need to think a bit before deciding on a strategy, but starting with higher risk/higher return and moving to a more defensive allocation later on makes sense

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Stulle 🥪@Stullen-Portfolio

1Yr

I think your idea of investing in ETFs and then reinvesting is a really good one, as it largely coincides with mine (I actually manage to avoid individual shares completely this way).

However, satisfaction is important for a good, personal strategy, because long-term satisfaction saves you from constantly brooding and avoids quasi-optimizations (which often tend to become pessimizations).

For my personal satisfaction, for example, I need 5 different ETFs as a basis for my "World"...whereby the big ones are not plain vanilla a la MSCI World, but ETFs with a customized investment strategy (the $JREG and $GGRG). The same applies to the supplementary EM and small cap ETFs.

I use small units of a World IT ETF and a Nasdaq ETF to deliberately accentuate my portfolio in this respect.

I round off the portfolio with a special ETF with a sector rotation strategy on the S&P 500 (whereby the sector rotation strategy ETF $216361 will have a permanent share of over 30%).

I am extremely satisfied with this very individual composition and have so far been able to completely resist buying even a single share - because it would not give me any further advantage...

Greetings
🥪

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Powell@TheRealPowell

1Yr

After some thought, I decided on de $IWDA and the $EIMI 70/30 split and these are now being saved.

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Lostian@Lostian

1Yr

Or $SPYI and 99% of the market economy

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