Hey, thanks for sharing. To say it up front: you are probably well diversified with your etfs and will probably achieve more with them and your savings rate than the average person.
First of all, individual stocks: you can do that. Personally, I've said goodbye to it, as my selection of individual securities has rather slowed me down. But I can understand the need for control.
Crypto and gold: why not. My weighting is smaller, but it depends on my personal risk affinity. risk affinity.
On the ETFs:
First, the presentation method: Please include the percentage weighting. Then you can better evaluate what you are doing. It would also have been nice if I didn't have to click on each one to see what's behind it.
On diversification, you may have overdone it a bit. While you're probably solidly diversified depending on your weighting, your approach has quite little method in my view. You walked through the supermarket, said please everything once and got 3 different packs of toilet paper, bought peppers and pointed peppers. You should consider whether you could have achieved your goal more easily with an MSCI World and emerging markets and small caps variants. Then you have a few value and dividend etfs, which are probably okay. If you actually had a value tilt in mind. But then, in my opinion, you should rather take value ETFs instead of dividend ETFs, as these are also available as accumulating ETFs. But in neither case are you really more diversified if you have several US big caps ETFs.
Europe is similar. You have the Stoxx Europe and MSCI Europe, a Europe Imi and Europe Value (if I have seen this correctly)
Maybe you could do the same with a
MSCI World, MSCI World Value, MSCI World small caps. If necessary, you can then overweight a region with an additional ETF or 2.
It should be similar with EM.
The advantage: with EM and World you could do without the Pacific and have a similar country diversification.
First of all, individual stocks: you can do that. Personally, I've said goodbye to it, as my selection of individual securities has rather slowed me down. But I can understand the need for control.
Crypto and gold: why not. My weighting is smaller, but it depends on my personal risk affinity. risk affinity.
On the ETFs:
First, the presentation method: Please include the percentage weighting. Then you can better evaluate what you are doing. It would also have been nice if I didn't have to click on each one to see what's behind it.
On diversification, you may have overdone it a bit. While you're probably solidly diversified depending on your weighting, your approach has quite little method in my view. You walked through the supermarket, said please everything once and got 3 different packs of toilet paper, bought peppers and pointed peppers. You should consider whether you could have achieved your goal more easily with an MSCI World and emerging markets and small caps variants. Then you have a few value and dividend etfs, which are probably okay. If you actually had a value tilt in mind. But then, in my opinion, you should rather take value ETFs instead of dividend ETFs, as these are also available as accumulating ETFs. But in neither case are you really more diversified if you have several US big caps ETFs.
Europe is similar. You have the Stoxx Europe and MSCI Europe, a Europe Imi and Europe Value (if I have seen this correctly)
Maybe you could do the same with a
MSCI World, MSCI World Value, MSCI World small caps. If necessary, you can then overweight a region with an additional ETF or 2.
It should be similar with EM.
The advantage: with EM and World you could do without the Pacific and have a similar country diversification.
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Thank you for your detailed feedback, @SchlaubiSchlumpf!
I really appreciate you taking the time to go through my portfolio and share your thoughts on it. You're certainly not wrong that there are a few overlaps - but I also see clear advantages in my ETF selection that are important to me.
Sometimes I just need the peppers for the farmer's pot and the pointed peppers for the goulash - and if I'm in the mood, I take the snack cucumber in addition to the salad cucumber because they are easier to snack on.
Why so many ETFs? Quite simply: I really want to take everything with me. A classic MSCI World + EM + Small Caps would of course be a simpler solution, but I don't have the targeted control of certain focal points. I don't just want to cover emerging markets across the board, I want to weight China specifically, for example. I don't just want to include standard large caps, but also small caps, value stocks and dividend stocks.
I may also share my portfolio here again at a later date as soon as the weighting and the next savings plans are complete.
In my view, my ETFs cover the following aspects, which also coincide with my planned strategy:
â Regional balance - USA as the main driver, but Europe, Asia, Japan and emerging markets are specifically included.
â Value & growth mix - With my additional value and dividend ETFs, I deliberately include a more conservative side, while growth is in the classic indices anyway.
â Small caps & factor strategies - The historically higher returns of smaller companies is an argument that I don't want to ignore, which is why small caps have a firm place.
â Dividend component - In addition to the classic ETFs, I also want to take regular distributions in order to have a certain "visibility" of the investments.
Of course, I could achieve a similar allocation with fewer ETFs, but for me it's also about fine-tuning and targeted management. I want to remain flexible and not think to myself in 10 years' time: "I wish I had invested more specifically in emerging markets or small caps back then".
On the individual stocks:
I totally understand that this doesn't make sense for everyone, but for me it also has a psychological component. When things get turbulent on the stock market, it helps me immensely to see that my companies continue to pay their dividends. This gives me stability and the certainty that my money is not just a number in my portfolio, but that it will bring me regular cash flow. Of course, individual shares are often no more efficient than ETFs in the long term, but it simply gives me a good feeling. And that's not unimportant for long-term investing.
There's no question that it's currently a challenging market phase for a new start - high interest rates, geopolitical uncertainties and an unclear economic situation don't make it easy. But that is precisely why I am now positioned for the long term and diversified. Crises are always also opportunities, and I believe that my broad-based portfolio helps me to benefit from the various developments worldwide in the long term.
Thanks again for your honest assessment! I think it's great that there is an objective exchange here - that's exactly why I'm here. And who knows, maybe I'll optimize my portfolio again if I realize that I'm making things too complicated for myself. But at the moment it feels just right! đ
I really appreciate you taking the time to go through my portfolio and share your thoughts on it. You're certainly not wrong that there are a few overlaps - but I also see clear advantages in my ETF selection that are important to me.
Sometimes I just need the peppers for the farmer's pot and the pointed peppers for the goulash - and if I'm in the mood, I take the snack cucumber in addition to the salad cucumber because they are easier to snack on.
Why so many ETFs? Quite simply: I really want to take everything with me. A classic MSCI World + EM + Small Caps would of course be a simpler solution, but I don't have the targeted control of certain focal points. I don't just want to cover emerging markets across the board, I want to weight China specifically, for example. I don't just want to include standard large caps, but also small caps, value stocks and dividend stocks.
I may also share my portfolio here again at a later date as soon as the weighting and the next savings plans are complete.
In my view, my ETFs cover the following aspects, which also coincide with my planned strategy:
â Regional balance - USA as the main driver, but Europe, Asia, Japan and emerging markets are specifically included.
â Value & growth mix - With my additional value and dividend ETFs, I deliberately include a more conservative side, while growth is in the classic indices anyway.
â Small caps & factor strategies - The historically higher returns of smaller companies is an argument that I don't want to ignore, which is why small caps have a firm place.
â Dividend component - In addition to the classic ETFs, I also want to take regular distributions in order to have a certain "visibility" of the investments.
Of course, I could achieve a similar allocation with fewer ETFs, but for me it's also about fine-tuning and targeted management. I want to remain flexible and not think to myself in 10 years' time: "I wish I had invested more specifically in emerging markets or small caps back then".
On the individual stocks:
I totally understand that this doesn't make sense for everyone, but for me it also has a psychological component. When things get turbulent on the stock market, it helps me immensely to see that my companies continue to pay their dividends. This gives me stability and the certainty that my money is not just a number in my portfolio, but that it will bring me regular cash flow. Of course, individual shares are often no more efficient than ETFs in the long term, but it simply gives me a good feeling. And that's not unimportant for long-term investing.
There's no question that it's currently a challenging market phase for a new start - high interest rates, geopolitical uncertainties and an unclear economic situation don't make it easy. But that is precisely why I am now positioned for the long term and diversified. Crises are always also opportunities, and I believe that my broad-based portfolio helps me to benefit from the various developments worldwide in the long term.
Thanks again for your honest assessment! I think it's great that there is an objective exchange here - that's exactly why I'm here. And who knows, maybe I'll optimize my portfolio again if I realize that I'm making things too complicated for myself. But at the moment it feels just right! đ
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11
â˘@TonyMelony1998 That's how it should be. Learning processes never end anyway. Since you already have one foot in with value, take a look at factor diversification. Quality or momentum could also be something for you. Although I wouldn't fully recommend even more etf đ
Incidentally, value and dividend have a large overlap, as many companies with a low P/E ratio are not classic growth stocks and therefore pay out more dividends. Just as an approach. Dividend is therefore not a factor in its own right, but rather a value proxy.
I also have the dividend thing on a very small scale, as I have 4% of my portfolio in $O. It's my only single stock. I tend to add 1-2 REITs to reflect the real estate sector.
Incidentally, value and dividend have a large overlap, as many companies with a low P/E ratio are not classic growth stocks and therefore pay out more dividends. Just as an approach. Dividend is therefore not a factor in its own right, but rather a value proxy.
I also have the dividend thing on a very small scale, as I have 4% of my portfolio in $O. It's my only single stock. I tend to add 1-2 REITs to reflect the real estate sector.
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@SchlaubiSchlumpf have a fairly similar investment strategy đ
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@Thesaurus to that of @TonyMelony1998?
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@SchlaubiSchlumpf Was a bit out of context sry. Meant our two investment strategies.
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@Thesaurus so multifactor +x? I am running multifactor +10% gold myself. I am building up crypto and am currently at around 4% with a long-term target of 5-10%. My factoretfs target the factors SC Value, Value, Momentum and Minimum volatility. Momentum and SC Value are the biggest.
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