1Yr·

Hey friends of outperformance!

I need your advice regarding a reorganization of my ETF portfolio:

About me: I am currently 19 years old and in my 2nd semester of economics. With the ETF allocation I hope to generate extra returns through sector bets, although I am aware of the increased risk. 100% $VWRL (+0.64%) would be too monotonous and low-risk for me at the moment. What do you think of the allocation and what would you change in your position?

Many thanks for any interaction <3

16 Comments

Uwe@SchlaubiSchlumpf

1Yr

It may work, but it doesn't have to. Good luck.

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Show answer

Epi@Epi

1Yr

The PE ETF tracks the S&P500 upwards and the QQQ downwards. Not much good.
If you want extra returns, you can hardly avoid BTC.

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Thesaurus@Thesaurus

1Yr

@Epi Well, I said I'm prepared to take extra risks. That doesn't mean I'm prepared to gamble my money away 😅

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Stulle 🥪@Stullen-Portfolio

1Yr

With private equity, you definitely get the risk you seem to be looking for 🚀
...but not an adequate return, but maybe that's not your point 🤷‍♂️

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Thesaurus@Thesaurus

1Yr

@Stullen-Portfolio Are you not a fan of the PE ETF?

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Stulle 🥪@Stullen-Portfolio

1Yr

@IIlIlIIlIIllIl
Yes, I don't like MaxDD of >80%. 😕

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Thesaurus@Thesaurus

1Yr

@Stullen-Portfolio I can understand that very well.

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Thesaurus@Thesaurus

1Yr

@Stullen-Portfolio What do you think of $XDEM as opposed to $IWDA?

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Stulle 🥪@Stullen-Portfolio

1Yr

@IIlIlIIlIIllIl
Basically, I like factors.
First and foremost size, because small caps are underrepresented in the broad ETFs and this adds further diversification to the portfolio in addition to the factor.
I also find value very interesting and, of course, quality.

However, it is also important to me personally that I don't just combine ETFs that are all weighted by market capitalization.

Regards
🥪

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Testo-Investor@Testo-Investor

1Yr

Instead of the ki etf, I would have taken the semiconductor etf from vaneck.... It shoots extreme extra returns for me ... ytd 2024 of 40%

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growth_ninja_79@growth_ninja_79

1Yr

@Testo-Investor or $CHIP Semiconductor with even higher rewards…

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Testo-Investor@Testo-Investor

1Yr

@growth_ninja_79 NVIDIA 35% :-)

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Deleted User

1Yr

Comment was deleted

Thesaurus@Thesaurus

1Yr

@PowerWordChill I will take another look at it thank you very much 🫶

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JtoTheB@JtoTheB

1Yr

@PowerWordChill I have a similar view! PE as an asset class has become less attractive since the slightly higher interest rates. The typical buyout business (LBOs) of PE companies has flattened out considerably due to the higher interest rates (an LBO with a debt level of over 70% no longer makes sense). The pearls in the portfolio are polished up at an operational level and not sold. The less well-performing assets in PE portfolios are sold at multiples that are sometimes too low.

However, in my opinion PE companies are still interesting candidates on my watchlist:

1. specialized PE companies such as $MUX, which do a lot of restructuring, have a high deal flow, especially in Europe, in the next few years and are also sitting on a lot of dry powder. A good mix 😄

2. companies such as $KKR or $BX are currently diversifying heavily into other asset classes. In my opinion, a particularly interesting area here is private credit (which is nothing more than shadow banking - but lucrative) or infrastructure.

3. if interest rates are now successively lowered, this will have a positive effect on the PE sector, but especially on LBO activity. However, you need a crystal ball for this 😄

Cheers!

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