10Mon·

Why I finally found my strategy after almost 5 years of investing.

It is often proclaimed here that less is more and financial market theory from academia clearly states that a single cost-effective global ETF is sufficient.

Why is that not enough for me? An often underestimated factor in investing is the feel-good factor with your investments, which can vary greatly depending on your situation and needs. With my investment strategy, I already manage to participate in my investments via dividends and still generate growth.

The allocation provides for 60% in the $VWRL (-0.36%) growth is also covered by the high tech exposure.

The other ETFs are intended to expand the quality theme by approx. 20% $FGEQ (+0.47%) and dividend growth.

The $TDIV (+0.2%) should contribute approx. 20% to country/industry balancing (USA lower), whereby the product with a 4.5% dividend yield has a sufficiently high, but not too high, share in the portfolio and pushes the dividends in the here and now. In addition, it acts as a hedge due to the different industry allocation; if tech stagnates, this ETF rises countercyclically, as the current week including sector rotation illustrates.

With this allocation, we are moving forward.

The 100k will follow, at the latest in December.

3Positions

€86,986.65

11.48%

28 Comments

Robert@Iwant_money_423

10Mon

Simple, works...is good! 😃👍

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Negroni@Negroni

10Mon

Since I have almost exactly the same strategy, I think it's good, of course! 👍🏻
I also have an s&p500 etf for the return boost and all 4 etfs (total 100k€) weighted with 25% each.
But as you say, it's about feel-good factors, I needed the return booster to feel good :)

Since I have been investing evenly in the strategy, I no longer have a bad gut feeling - before I invested far too riskily (with success but without sleep).

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TaubeSmash@TaubeSmash

10Mon

@Negroni I know the gut feeling only too well. Previously I also had individual shares in addition to the FTSE, but in addition to the increased risk perception I also underperformed (a few %, but underperformance remains underperformance). Since then I've tried to keep my emotions out as much as possible and the strategy makes it relatively easy for me. :)

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jxn1k@jxn1k

10Mon

Hey @Negroni, if you don't mind me asking, how should we understand yield boost? A lot of people are talking about that here. Especially in relation to the S&P500.

Why do you think this is a yield boost?

The bottom line is that you are referring to the past. After all, this is not a reliable indicator for the future.

It could just as well be a yield destroyer.

I understand the feel-good aspect. But will an extra bet make you sleep better? The bottom line is that you have a lump risk through the US. There are enough statistics that speak against such "boosts".

Not meant to sound offensive at all, I look forward to your feedback! LG.

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flowriii@flowriii

10Mon

Love this strategy and have been inspired by it.

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TaubeSmash@TaubeSmash

10Mon

@flowriii delighted!!! 💪🏼

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Chiefwiggum@Hidalidsch

10Mon

What is your savings rate 🤩

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TaubeSmash@TaubeSmash

10Mon

@Hidalidsch If there are no extra expenses, about 2.5k per month 😋

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ETFKing@ETFKing

10Mon

How high is the capital gains tax on dividends in the 🇨🇭❓

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TaubeSmash@TaubeSmash

10Mon

@ETFKing Dividends must be taxed as income together with the salary. They are therefore taxed individually according to personal income taxation.

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PrioFreedom@PrioFreedom

10Mon

There is no capital gains tax in Switzerland - a flat rate of 35% withholding tax is paid by the bank to the tax authorities on dividends and other investment income.

However, the withholding tax only serves as security to prevent tax evasion. If the withholding tax is declared correctly in the tax return, 100% of the tax is refunded.

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Biernot@derteufel

10Mon

KISS: Keep It Simple Stupid 👍🏻🙂

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Maximilian@Max095

2Mon

I think your strategy is really strong! Have you ever calculated how much dividends you will receive in 20-30 years? Is it also your goal to be able to live off these earnings at some point?
LG Max 😊

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TaubeSmash@TaubeSmash

2Mon

@Max095 If I calculate my portfolio allocation, my deposits and past dividend increases up to the age of 60, that should give me around €50k per year in dividends. 😊

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Maximilian@Max095

2Mon

@TaubeSmash That's a really big sum, and certainly a conservative calculation. 🔥🚀

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TaubeSmash@TaubeSmash

2Mon

@Max095 Thank you! What's the situation with you and your extrapolation?

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Maximilian@Max095

2Mon

@TaubeSmash To be honest, I have never done the math. I'm unsure about my final strategy and stock selection. But my focus is definitely on dividend growth. Selling my entire portfolio at some point would somehow feel wrong ...

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Epi@Epi

10Mon

Your "strategy" is based on the assumption that equities as an asset class will always rise, with at most a slight rotation in the sectors/factors. That may have been true for the last 15 years. It is also true in the long term.

But as far as the performance of the last 15 years is concerned, you are subject to recency bias. The equity asset class can also be under water for 10-15 years. Your allocation does not generate an excess return in various scenarios.
And in the very long term, of course, only the DivGrowth ETF makes sense, all others perform worse.
If prices fall across the board, all you have left is the good feeling of being right. Unfortunately, the market doesn't really care.
So: good luck and persevere with your strategy.

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TaubeSmash@TaubeSmash

10Mon

@Epi Irrational feedback in my opinion. Every form of investment is subject to a positive expected value, otherwise we could leave it alone.
Even with a possible underperformance against other assets, the history of the last 100 years shows that equities are the best vehicle for long-term wealth accumulation. The years are enough for me to make my decision and ride out potential periods of drought. But thanks for your feedback and good luck with gold :)

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Epi@Epi

10Mon

@TaubeSmash Haha! That was a good one.
Then explain to me why you want to do without any factor with the Allworld and why there is nothing better than 7%pa with 60% max drawdown.
In the long term, the DivGrowth strategy is the best for B&H. Underweighting the best strategy does not seem rational to me. 😅

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TaubeSmash@TaubeSmash

10Mon

@Epi Please read the above again. This is merely a presentation of my investment strategy without any claim that I outperform everything or that I am prepared for every possible exceptional case. I can't, I don't want to, I never said that.
You can constructively share your investment "strategy" here under my post, then I can learn something from you ;)

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Epi@Epi

10Mon

@TaubeSmash Well, you write at the beginning that you want divs and growth with this strategy.
To put it bluntly: they don't go together. Either you save capital or you relax it. If you save now in order to save later, the DivGrowth strategy is the rational one. Any deviations from it are less rational.
If you don't want to be rational at all, but rather emotional, that's of course your thing. But at some point, emotions are no longer satisfied if things aren't going well rationally. 🤷
I don't really care what you do with your money. I just wanted to give you a hint.

I've explained my GTAA strategy several times before. You can find it on my profile.

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TaubeSmash@TaubeSmash

10Mon

@Epi unfortunately see it very rigidly and don't respond to what I write in the article. You also seem to only know black and white.

I briefly looked at your strategy and there seems to be no alternative. The outperformance will thank you and I wish you every success!

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Epi@Epi

10Mon

@TaubeSmash Haha! There you go again. What makes you think I only know black and white? What would be black and what would be white?
But one thing is true, I think there is an optimal strategy for every situation and every goal.
Because most people don't know their goals or their situation and don't know what strategies exist, they choose ACWI. A Swiss army knife for dissecting and cutting flowers. Not optimal, but better than a stick.

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