1Mon·

ETF Savings Plan Strategy

I'd like to hear your thoughts: I'm currently investing €250 per month in a Nasdaq 100 ETF $XNAS (+0.32%) , of course. Alongside that, I’m investing in a Vanguard FTSE All-World High Dividend Yield $VHYL (-0.19%) that pays out dividends. I plan to reinvest the dividends back into the Nasdaq 100, especially during market downturns, or simply enjoy the cash flow. I want to stick with this until retirement; I’m 37 now. What do you think of this ETF savings plan strategy?

9 Comments

Ruben Schoff@Sand

1Mon

I think that's a good approach—you're balancing growth and income/value well that way. I'm investing in the SPDR MSCI ACWI IMI (reinvesting dividends) and the VHYL (paying out dividends) in a 65-to-35 ratio, and I'm also 37 years old. I also hold a few growth stocks as individual holdings, as well as some dividend-paying stocks. Dividend payments go directly into my savings plans.

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Wolf der Mauerstraße@Pilla1311

1Mon

@Sand It's going well for me, too—just like it is for me 😄 I also have individual tech stocks, dividend-paying stocks, and a Bitcoin savings plan.

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Ruben Schoff@Sand

1Mon

@Pilla1311 Continued success is still the most important thing for all of us—the key is to stick with it over the long term and let the market compound. Once you reach a certain amount, you really start to see progress...

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OberstvonGatow@OberstvonGatow

1Mon

Hmm, I don't personally like it. But I don't have to.
You have to be happy with it.
I’d probably rather invest €200 in the Nasdaq 100 ETF, €250 in the latest $VALU FTSE All Cap ETF, and if it absolutely has to be a dividend-paying fund, then put the €50 into the one you’ve already been saving in. $VHYL

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Wolf der Mauerstraße@Pilla1311

1Mon

@OberstvonGatow Yeah, I've already thought about the new All-Cap. I'm also interested in the cash flow, even if it means forgoing compound interest—but I already have that in the Nasdaq, so we'll see.

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Tom_Trader@Tom_Trader

1Mon

Basically, it’s a good defensive strategy. But at 37, I’d take on more risk and not have the earnings paid out. Taxes eat into the compound interest. That really adds up over 30 years! It’s better to adjust your savings rate.
Instead of $VHYL, I'd go with $YGLD

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Alexander_Bitcoin@Alexander_Bitcoin

1Mon

I would invest everything in NASDAQ.

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AbteilungsleiterDerLiebe@AbteilungsleiterDerLiebe

1Mon

I don't think it's as defensive as everyone is making it out to be. Your largest holding is an ETF focused on a country with a high concentration in tech, etc. Sure, the HighDiv ETF is more focused on the "old economy" and therefore has little to no overlap, but your exposure to the U.S. will be high. I'd rather swap the NASDAQ for something broader.

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Steve91@Steve91

1Mon

I'd limit it to a few funds. I'm taking the same approach, but with All World and L&G.
I'll stick with those two until I'm 60 😁

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