9Mon·

Hello everyone, what do you think of the Gerd Kommer ETF? Would you invest in it? Do you think the TER of 0.5% is too high? And are there alternative ETFs that are so globally diversified and have such a balanced weighting?

18 Comments

Pope Donkey XXI@DonkeyInvestor

9Mon

If the investment concept behind it appealed to me, then I would save for it 👍

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Mo@TheMo1

9Mon

@DonkeyInvestor Thanks for your answer 👍🏼👍🏼 I still need to think the whole thing through carefully

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Uwe@SchlaubiSchlumpf

9Mon

@DonkeyInvestor can't be behind his concept. He also thinks bitcoin is stupid 😂

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Pope Donkey XXI@DonkeyInvestor

9Mon

@SchlaubiSchlumpf the bastard. I'm going to work him over with my hooves

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SceanInvest@SceanInvest

8Mon

If you understand the concept of ETFs, understand the "pain" factor investing can cause - because collecting the factor premiums means staying cool during lean periods and accepting the short-term underperformance - and appreciate the benefits of broad diversification. Then yes. Then this ETF is the egg-laying wool-milk sow and a TER of 0.5% is more than fair.

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Imperial_Trading_Company@Imperial_Trading_Company

9Mon

I have it in my savings plan as a small addition. I find the idea and the concept interesting and I use it to cover areas that I wouldn't otherwise have. I think the return in the first year was also better than expected (by Kommer himself). What I liked recently was that $GERD always reacted a little more calmly when things got turbulent and other prices went crazy (up and down).
The TER is high, yes. It is simply the result of permanent rebalancing.

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Mo@TheMo1

9Mon

@Goldpasslord I have decided to only have this in my portfolio, because it is already very well diversified. Does it make sense to add it somehow? The only thing that is a thorn in my side is the TER

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Imperial_Trading_Company@Imperial_Trading_Company

9Mon

@TheMo1 well, it depends on the rest of your portfolio. Mine is very US-heavy, so a diverse mix makes sense. Kommer ETF as a core certainly works too. Gerd Kommer's bet is that he wants to beat the conventional All Worlds for 30 or 40 years, because he says that he is better prepared for any changes in the future thanks to the ultra-diversification.

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Kai@Dividenden-Sammler

9Mon

So a TER of 0.5% is one of the more expensive ETFs. Especially when you look at your portfolio, there are definitely cheaper and better ones. If it's more of a small building block because you like the concept, then you can do it.

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Mo@TheMo1

9Mon

@Dividenden-Sammler What alternatives are there to Gerd Kommer Etfs?

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Kai@Dividenden-Sammler

9Mon

@TheMo1 As I said before, if I see it as a core/basic investment in the portfolio, I would use an MSCI World, Allworld or S&P500 ETF as standard.
You can certainly add it as an additional/satellite ETF if you like the concept.
It just depends on your strategy and what purpose it should fulfill in your portfolio.

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Uwe@SchlaubiSchlumpf

9Mon

@TheMo1 I do it myself. So multi-factor ETF. Rebalance with new money. In principle, Kommer also suggested this in one of his books before he launched his ETF.
So you can do the whole thing yourself more cheaply, for example by getting an MSCI World Momentum Value and Quality at a 0.25% TER. If it runs for a long time and you have several ETFs in savings plans. Of course, there are pros and cons.
Pros: Cheaper, I can individualize it. If I want to ignore a risk premium, I leave it alone. I can personalize it. An Emerging Markets Quality has a TER of 0.49%. If I don't like that, I leave it out and go much cheaper.
Con: High expense due to rebalancing, if I can't rebalance enough by saving alone and have to sell, taxes to be paid could cancel out the cost advantage. I have to save in several ETFs, which could lead to higher fees with some brokers, especially without a savings plan.

I personally opted for this as I find 0.5% very high. However, it should be added that the transaction costs of 0.03% are lower than for many other ETFs.

I hope that wasn't too cryptic. I have the feeling that I wrote it down a bit chaotically. So please ask if anything was unclear.

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Uwe@SchlaubiSchlumpf

9Mon

@SchlaubiSchlumpf But an ACWI would probably be simpler if it's only about global weighting. Or this Prime Global.

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Mo@TheMo1

9Mon

@SchlaubiSchlumpf Thank you for all your tips and advice. What do you think of Prime global 2:1 Ex Usa? This mix seems to be similar to the Gerd Kommer Etf but of course cheaper

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Alex@AlexBloch

6Mon

@Dividenden-Sammler Kommer's goal is to outperform the ACWI IMI by 1-1.5% (on average per year) after at least(!) 1 decade. With a €100,000 investment and deduction of 0.5% costs, this means at least €1000 more at 1% per year, i.e. €30,000 after 30 years. So that's the difference a reasonable e-car makes! Not to mention the doubling of the invested capital alone every 10 years: i.e. €200,000 after 10 years, or €800,000 after 30 years! If our state were to invest 100 billion once instead of pumping this amount into the pension system every(!) year as a subsidy from taxpayers' money, it would have 800 billion(!!) left over for pensions and much more in 30 years... And the people currently up to 30 years old would have no problem with their state pension later!!! Young people, stand up and demand this from the politicians, no matter which party !!!

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Unbekannt@Pirat123

9Mon

0.5 TER would be too much for me, so I would not save for it

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Soprano@Soprano

9Mon

If you are a fan and trust him, you can do that. There's nothing wrong with it and the TER doesn't matter. But there's also nothing that necessarily speaks in favor of it, so you can leave it alone.

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Alex@AlexBloch

6Mon

Kommer's goal is to outperform the ACWI IMI by 1-1.5% (on average per year) after at least(!) 1 decade. With a €100,000 investment and deduction of 0.5% costs, this means at least €1000 more at 1% per year, i.e. €30,000 after 30 years. So that's the difference between a decent electric car or a heat pump! Not to mention the doubling of the invested capital alone every 10 years: i.e. €200,000 after 10 years, or €800,000 after 30 years! If our state were to invest 100 billion once instead of pumping this amount into the pension system every(!) year as a subsidy from taxpayers' money, it would have 800 billion(!!) left over for pensions and much more in 30 years... And the people who are currently up to 30 years old would have no problem with their state pension later!!! Young people, stand up and demand this from the politicians, no matter which party !!!

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