4Mon·

DIY-GPO: Result

$D5V0 (+0.66%) I've been trying to replicate the GPO myself since the start of the coronavirus. Because I am 100% convinced of the concept, but the costs of 0.7% p.a. are too high for me, especially in absolute terms with high investment assets.

...1 year ago I was ready with purchases and necessary reallocations.

And my last (current) 1-year performance is almost identical to the GPO (before deduction of GPO costs!).

My DIY GPO has a TER of less than 0.2% p.a. So I have saved myself 0.5% costs p.a., even if a DIY GPO is of course much more labor-intensive (due to rebalancing, crisis monitoring and market monitoring to select a suitable investment reserve (bonds).

...The GPO is 100% a long-term passive investment (from the investor's point of view).

Ergo:

If you want to invest "smaller" assets (up to 5-digit) well and extremely easily without any effort on your part, the GPO is an excellent fit (at acceptable costs).

For higher assets, my recommendation only applies if the TER of the GPO would fall to <=0.5%. (Gerd Kommer only uses 0.5% for his ETF).

2 Comments

Kai Nehr@Webda

3Wk

What is the composition of the DIY-GPO?

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Alex@AlexBloch

@Webda
A maximum simple replication would consist of thesaur. ETFs in each case:
(Core:)
40% on S&P500
20% on EUROPA
20% on EM IMI
20% on WORLD SMALL CAPS

(plus invest reserve of 20% of the total portfolio value)
ETF on European government bonds
(mixed maturity with medium duration)

I have actually made it much more granular with more ETFs like Andreas Beck, and also had to make a workaround in the mix/weighting for historical reasons, as I initially only started investing with ETFs with an MSCI World alone.
(Which is not as optimal as the allocation above. But I still don't want to sell it because I don't sell/reallocate anything as a matter of principle, but only reinvest specifically in the above indices/ETFs; especially in times of crisis, but also in between via savings installments from fresh wages).

My return (since March 2020, when I started with the MSCI World):

Internal rate of return :
11.72 % (p.a.)
TTWROR (True time-weighted rate of return) :
89.18 % (i.e. on average approx. 15% p.a.)

p.s.
For my children, on the other hand, I invest in the original GPO, because the absolute costs are not so significant and it is a "fire & forget" fund of funds, where you don't have to worry about anything except making selective (or monthly) payments via an ETF savings plan.

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