Hey, it's great that you're dealing with these issues so intensively.
You don't need to say much about the core, it fits.
The satellites reflect the current trend, where nobody knows what will happen tomorrow.
Without knowing the exact fact sheets, my problem with sector ETFs in general is that often only a "few" strong companies emerge as market leaders in the long term and the rest are in danger of underperforming, but who knows 🔮
Otherwise, ETFs are highly susceptible to political and economic regulation.
The portfolio would be too complex for me personally, what is your plan in terms of balancing?
In terms of the risk/reward ratio, I would probably prefer to forego some potential returns and part with some sector ETFs.
As soon as some sectors in the world ETF outperform, they automatically take up a larger share of the index. This will be clearly noticeable if the trend/sector is actually the same as in your investment period of 20 years. You will also participate in the trend, not as strongly as with a pure sector ETF, but certainly above average. On the other hand, you are more secure in the event that the sector does not outperform in the next 20 years and another sector takes its place. That's why I'm a fan of the pure World, ACWI.
You don't need to say much about the core, it fits.
The satellites reflect the current trend, where nobody knows what will happen tomorrow.
Without knowing the exact fact sheets, my problem with sector ETFs in general is that often only a "few" strong companies emerge as market leaders in the long term and the rest are in danger of underperforming, but who knows 🔮
Otherwise, ETFs are highly susceptible to political and economic regulation.
The portfolio would be too complex for me personally, what is your plan in terms of balancing?
In terms of the risk/reward ratio, I would probably prefer to forego some potential returns and part with some sector ETFs.
As soon as some sectors in the world ETF outperform, they automatically take up a larger share of the index. This will be clearly noticeable if the trend/sector is actually the same as in your investment period of 20 years. You will also participate in the trend, not as strongly as with a pure sector ETF, but certainly above average. On the other hand, you are more secure in the event that the sector does not outperform in the next 20 years and another sector takes its place. That's why I'm a fan of the pure World, ACWI.
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@VPT Hello Kevin,
Thank you very much for your really detailed comment.
Just to define it again as a question. The way I've set it up, it shouldn't be so wrong, should it?
The satellites I chose are indeed highly susceptible to global politics and market trends. I completely agree with you. But it also reflects the current market (yield). I actually thought I had kept the complexity within limits. At the moment, I'm glad that I've found a way to invest my money. I have portfolio rebalancing on my radar. However, to be honest, I have to admit that I haven't given it any thought yet, as I'm just starting out with the "new" portfolio and trying to follow tendencies and trends. I don't want to change anything for the time being, provided the framework conditions allow it. Just let it run its course. The last few weeks have cost me a lot of sleep and nerves, as I've been working my way into the matter and trying to find my own way.
During my investment period, I will certainly be changing my satellites. The core remains and that's the most important thing.
For me, I can't imagine having just one MSCI World, FTSE-All World or MSCI ACWI.
Thank you for your feedback and good returns and success on the stock market to you too.
Daniel
Thank you very much for your really detailed comment.
Just to define it again as a question. The way I've set it up, it shouldn't be so wrong, should it?
The satellites I chose are indeed highly susceptible to global politics and market trends. I completely agree with you. But it also reflects the current market (yield). I actually thought I had kept the complexity within limits. At the moment, I'm glad that I've found a way to invest my money. I have portfolio rebalancing on my radar. However, to be honest, I have to admit that I haven't given it any thought yet, as I'm just starting out with the "new" portfolio and trying to follow tendencies and trends. I don't want to change anything for the time being, provided the framework conditions allow it. Just let it run its course. The last few weeks have cost me a lot of sleep and nerves, as I've been working my way into the matter and trying to find my own way.
During my investment period, I will certainly be changing my satellites. The core remains and that's the most important thing.
For me, I can't imagine having just one MSCI World, FTSE-All World or MSCI ACWI.
Thank you for your feedback and good returns and success on the stock market to you too.
Daniel
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@Bidax not wrong... you could say that. The most important thing is to get started. Even if you start like this now, you will certainly change your strategy many times over the next few years.
The comment on the satellites from @DonkeyInvestor complements my opinion on the satellites and sums it up pretty well.
The comment on the satellites from @DonkeyInvestor complements my opinion on the satellites and sums it up pretty well.
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•@VPT and @DonkeyInvestor: I'm really glad that I brought this up for discussion again. Apparently I need to rethink my "refurbished" portfolio again.
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@Bidax Please start first and learn in practice. That way you'll get a feel for it and learn as you go. It may cost a bit of money (or not) but it's a thousand times better than listening to strangers on the internet all the time
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