1Wk·

ETF yield booster

At the age of 25, I'm asking myself whether it makes sense to add to my $VWCE (+0.23%) the $CSNDX (+0.56%) or the $QUS5 (-0.49%) in order to emphasize the tech stocks a little more and achieve a slightly higher return. Does that make sense? If so, which of the two would you prefer?

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6 Comments

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As always, it depends. Tech has done brutally well over the last few years and assuming it continues that way due to the whole AI thing, then you're not doing much wrong with the $CSNDX. In addition to your two suggestions, I have one more. Maybe the $IS3R is also something for you, as it contains the stocks that are currently doing well.
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If you want to give the tech industry a higher weighting than it already has in the broadly diversified ETFs, such as the MSCI World or FTSE Allworld, I would go for a NASDAQ ETF. However, I would stay away from industry or sector ETFs because I want to invest for the long term. In my opinion, these are the products that are currently in fashion in terms of investment focus - whether this will remain the case in the long term is questionable. They are more good for short-term trading, if at all.
However, the combination of MSCI World or FTSE Allworld together with a Nasdaq100 is a good combination if you want to overweight tech stocks in your portfolio.
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"Earn more returns with tech stocks" - that's what 25-year-olds thought in 2000. By the time they were 40, the total return was 0%.

So be careful, tech can also be different.
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Better use the $EQEU instead.
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The $AVWS would complement your $VWCE well. The All-World does not cover small caps and with the $AVWS you would invest specifically in undervalued profitable small caps. According to Capm and fama & french, this gives you statistically higher return opportunities with a long-term investment horizon.
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@U1F34E Here is another interesting video on the subject of overweighting individual sectors https://m.youtube.com/watch?v=3B9umhfv_ww&pp=ygUKQmVuIGZlbGl4IA%3D%3D
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