1D·

ETF allocation

$SPY5 (+1.53%)
$VWCG (+0.52%)
$EIMI (+0.78%)
$WSML (+1.07%)
$VJPB (+0.77%)
$CPXJ (-0.09%)

Which of the three allocations do you think is best for a monthly savings plan? Or would you do it completely differently? If so, how?

I'm 30 and have a long investment horizon.

I already have these ETFs as core and don't really want to sell, otherwise I'll have to pay a lot of tax.

10 Comments

GerdaKommer🦛@_Hippo_

18H

ChatGPT is not a good advisor in such matters and often even delivers incorrect results. For example, votes, ISINs and ETFs are often not weighted at all. In any case, the weighting by market capitalization has been significantly deviated from here, which will inevitably lead to a return disadvantage in the long term. Perhaps a FTSE All World or an ACWI IMI, which hold a large number of shares from all over the world in relation to their market capitalization and regularly adjust this ratio, would be a better choice. You don't have to sell your existing ETFs, just invest new capital more efficiently. Alternatively, the following would also be conceivable: 50 % S&P500, 40 % MSCI World ex USA and 10 % EM IMI.

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Marcus H.@Snopy

13H

@_Hippo_ Thank you very much for your answer.

Sure ACWI IMI or FTSE is the easier investment as you just powder everything into one ETF.

I have now done a backtest from 2005-2022 (unfortunately Curvo only goes up to 22.) There the FTSE All World has achieved less return compared to the 3 portfolio proposals.

I always ask myself: What does it mean to invest money efficiently? There are so many strategies and ways to invest money. How do I know which one is the "most efficient" or "best"?

Of course I could just save in the FTSE from now on, but somehow I find that boring and I don't want to have another ETF in my portfolio now.

If so, then just 1 ETF and that's fine. But it's not worth it at the moment because I'll have high costs due to selling and taxes.

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Epi@Epi

23H

What justification does Mr. GPT provide for the respective allocations?

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Marcus H.@Snopy

14H

@Epi s&p 500 reduce to 42% to increase divestitures
Europe developed 16% unchanged - solid base
EM IMI 18% up slightly for growth potential
Small caps up 12% - higher long-term returns
Japan 6% slightly higher - large economy with rebound opportunity
Pacific ex Japan 6% slightly higher for Asia diversification

this is the rationale

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Epi@Epi

13H

@Snopy Thank you. The reasons sound a bit vague and incoherent. But that's AI - for now.

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Marcus H.@Snopy

13H

@Epi I only use the AI to get ideas or possibilities for customization.

The fundamental question is how you want to weight yourself. This differs from person to person, as everyone has a different focus and sees different markets as having a strong future.

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Dominik@Dominik_76

15H

Do a backtest with Curvo and compare the result with, for example, an ACWI for the same period. I recently compared a similar country allocation with 4 similar country etf on the msci with the msci world and over a term of 24 years from 2000 to 2024 the return p.a. was approx. 1-2% higher than with the msci world with a 40-20-20-20 weighting.

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Marcus H.@Snopy

14H

@Dominik_76 unfortunately you can only compare until dec 2022 :(

But from 2005 - 2022 the increase is the strongest with 48% USA with 8.61% per year on average compared to 7.62% of the FTSE all world.

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GerdaKommer🦛@_Hippo_

13H

Back tests are extremely dangerous, as past performance is no guarantee of future performance. On the contrary, mean reversion often strikes here.

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Marcus H.@Snopy

13H

@_Hippo_ I am well aware of this, but unfortunately this is the only way to measure the performance of a strategy. As you say, you can't predict the future.

That's why I find it difficult to say that everything in the FTSE or ACWI is the best.
Sure, it's certainly the easiest. But nobody can and will be able to say whether it is the best.

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