1Wk·

Reduce US share

Dear Community,

Following the events of the last few weeks, I have decided to reduce my US holdings and diversify my ETF portfolio more broadly.

I am currently investing in the $CSPX (-0.31%) and the $AVWS (+1.01%) as an admixture. I no longer hold any individual shares.

I also have a savings plan in place $BTC (-0.15%) and some play money in crypto.

I would like to bring the US share to around the level of a world etf (70.%), so I'm wondering what the smartest approach is.

Option 1: Sell $CSPX (-0.31%) and buying a world etf like $VWCE (-0.12%) or $AVWC (+0.45%)

When selling my s&p etf, taxes would of course be due (currently 25% return). I live in Austria if this is relevant.

Option 2: keep the s&p and buy 1-2 etf in addition e.g. $MEUD (+0.95%) and $XNKY (+0.15%) and save. Here I could of course plan the weighting individually, but it is also a bit more time-consuming in terms of rebalancing.

I would appreciate a few opinions, thank you!

5 Comments

Harald@Madhatter5566

1Wk

I think variant 2 is better. Simply direct savings plans towards something else. It has the advantage that you don't incur any taxes and don't go out somewhere only to run into something else that's worse. If this happens to you in variant 2, you can write it off as diversification costs.

You could also invest in gold. Silver. Reduce the overall equity market weighting. Completely. Gold is the new Bitcoin or something. Also has risks, is at the ATH. But so does bitcoin.

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Markus@_xempex_

1Wk

Your portfolio is not yet so large that you need to start thinking about ETF sales and rebalancing. That's more for the endgame, if at all. If you want to reduce the US share, then simply stop any savings plans on the SP500 and start building up the Stoxx 600 etc. Then the ratio will change all by itself. Then the ratio will change all by itself.
P.S.: Don't think too complicated, especially in the initial phase. Investing is not rocket science, just do it ;)

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Erik@dividend_hero_100

1Wk

Thank you very much for your answers. I will choose option 2 and possibly add gold.

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D.S.@Cato_Bamboo

1Wk

If you also sell your S&P500 now, you will pay taxes on the previous return. Then it could be completely in ar... . So I would hold, or sell and hold cash for the time being until things have calmed down a bit.

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usercfa9aebd3ef041d6@usercfa9aebd3ef041d6

1Wk

Please ask yourself, does it make sense to chase Europe right now? Please also think long-term, the US is a little weaker at the moment but there are also opportunities to accumulate over the next few years. In any case, keep the S&P and add to it accordingly so that your US share is reduced, but in retrospect an All world or msci world might have been more suitable as a core, but of course that always depends on your risk appetite. But generally a good plan to be a little more diversified 👍🏼

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