General Dynamics

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ISIN: US3695501086

Ticker: GD

US3695501086

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@BigMo

5D·

Selected US defense stocks in a deep dive

🚨 Disclaimer: This is not investment advice; I am invested in all the stocks discussed here.

These analyses are primarily for my personal decision-making - I am happy if they also offer added value for you 🙂

Here we go already!

Europe's defense industry has experienced a boom since the war in Ukraine: in 2024, global military spending rose by 9.4% to a record high of USD 2.72 trillion - the sharpest increase since the Cold War.

Europe in particular increased its budgets (including Russia) by around 17%, driven by the new threat situation.

This rearmament is also benefiting US arms companies, as many European armed forces are increasingly relying on US weapons systems.

🤔 Trump 2.0 - tailwind or risk for US defense stocks?

Since Donald Trump moved back into the White House in January 2025, US defense policy has changed noticeably - with a direct impact on the defense industry and its investors.

📈 Defense spending on record course

Trump has announced a defense budget for fiscal year 2026 of over 1 trillion USD an increase of 13% compared to the previous year.

Of particular note is the ambitious "Golden Dome" project, a space-based missile defense system estimated at USD 175 billion and involving companies such as Lockheed Martin and SpaceX.

📉 Protectionism as a double-edged sword

At the same time, Trump is pursuing an aggressive trade policy:

10% base tariff on all imports, with higher "reciprocal" tariffs for countries with trade surpluses with the US.
Doubling steel and aluminum tariffs to 50%, which will increase the cost of arms production in particular.

These measures could put a strain on supply chains and increase production costs for US defense companies. RTX (formerly Raytheon) expects additional costs of up to USD 850 million in 2025 alone as a result of the new tariffs.

👉 Importance of US weapons systems for Europe's defense:

Many European armed forces rely on US technology. Examples include the procurement of F-35 stealth jets (e.g. by Germany, Poland, Finland), Patriot air defense systems (e.g. by Germany, Poland) or Abrams tanks (Poland).

US systems are considered combat-proven and immediately available, which improves interoperability within NATO in Europe.

Europe benefits from US innovations (e.g. drones, missiles, fighter jets), while the USA receives stable sales markets in return.

Especially against the backdrop of the war in Ukraine and new threats (Russia, terror, unstable regions), Europe's dependence on US armaments continues to grow.

🚨 Even if Europe wants to become more "strategically autonomous" in the long term, US defense systems are irreplaceable for the foreseeable future. Anyone who wants to seriously pursue national or alliance defense needs US technology - both operationally and politically.

📍 Stock analysis - Fundamental & Technical

Following this overview, here are six selected US defense stocks in detail.

For each share, we look at the strategic benefits, current business figures including management outlook, key valuation ratios, analyst assessments, the attractiveness of entering the market at the current price and the dividend situation.

ℹ️ My approach to technical analysis:

My entries are usually follow-on purchases as part of a long-term buy-and-hold approach. I do not try to time tops or bottoms, but look for zones where opportunities and risks are well balanced in the long term.

👉 Important here: sometimes "doing nothing" is the best decision.

If the price doesn't reach my buyback zones - then I simply don't buy more. Patience is often a better entry trigger than actionism (especially in the case of highly volatile defense stocks).

📉 I let the market come to me - not the other way around.

📍 Lockheed Martin $LMT (+1.24%)

Strategic benefit:

World leader in stealth jets (F-35), missile defense, space - essential for NATO partners.

Key points:

Q1 2025: revenue +4%, EPS $7.28, order backlog at record level ($173 bn)
Outlook 2025: EPS $27-27.30, stable growth - focus on F-35, missiles
Valuation: P/E ~17-18, PEG ~1.6, debt low
Analysts: 7 Buy / 8 Hold → Moderate Buy, target price ~+8 %
Dividend: $3.30/Q, increase for 22 years, ~2.7 % yield
🟡 Entry from a fundamental perspective: 6/10 - Solid basic investment, but no bargain

📈 LMT weekly chart (logarithmic) - 50 & 200-week SMA, volume profile

Current rebound from strong support zone, supported by 200-SMA and volume profile.
Momentum slightly positive, but no clear breakout yet
USD 495-500 zone = key resistance
Support stable, but risk increases significantly below USD 450
Currently: technically neutral to slightly bullish - with potential for a breakout if volumes continue to rise
👉 My potential long-term post-buy zone: near the 200-SMA (currently approx. USD 450)

📍 RTX Corporation $RTX (+1.23%)

Strategic benefit:

Combines military systems (Patriot, missiles) with commercial aviation (Pratt & Whitney).

Key points:

Q1 2025: revenue +5%, EPS $1.47 - but tariffs weigh $850m.
Outlook 2025: Sales $83-84 bn, EPS $6.00-6.15 - solid but cautious
Valuation: P/E ~22, EV/EBITDA ~18, debt increased
Analysts: majority Buy, target price ~+5-8
Dividend: $0.68/Q, ~2.1 % yield, >50 years of increases
🟢 Entry from a fundamental perspective: 7/10 - turnaround bet with aviation fantasy

📈 RTX weekly chart (logarithmic) - 50 & 200-week SMA, volume profile

RTX is clearly moving in an overarching uptrend since the low at the end of 2023
Bottom formation 2022-2023 was completed with high volume, breakout above USD 115 was decisive
Consolidation above the 50-SMA is constructive - pullbacks to the USD 122/115 area would be technically healthy pullbacks
Trend: Bullish
Breakout above USD 139 could trigger strong new momentum as there is hardly any volume resistance
👉 My potential long-term post-buy zone: in zone around the 50-SMA (122-115 USD)

📍 General Dynamics $GD (+0.7%)

Strategic benefit:

Strong in tanks (Abrams), submarines, naval vessels - broad portfolio + Gulfstream business jets.

Key points:

Q1 2025: revenue +14%, EPS $3.66, book-to-bill stable
Outlook: EPS +9-10% in 2025, robust despite weaker order intake
Valuation: P/E ratio ~15-16, debt low, PEG high
Analysts: 8 Buy / 13 Hold → Moderate Buy, price target slightly above market
Dividend: $1.50/Q, 28-year increase, ~2.5% yield
🟢 Entry from a fundamental perspective: 8/10 - undervalued, solid basis, little hype

📈 GD weekly chart (logarithmic) - 50 & 200-week SMA, volume profile

GD is technically stabilized, but with limited momentum
The reversal at the 200-SMA was convincing, but the subsequent rise has so far remained capped below the 50-SMA
Trend: bullish in the long term, neutral to slightly bearish in the medium term
Solid support at ~ USD 245 - technical basis intact
Breakout above USD 280 necessary to spark new momentum
👉 My potential long-term post-buy zone: in zone around the 200-SMA (245-250 USD)

📍 Northrop Grumman $NOC (+0.69%)

Strategic benefit:

High-tech focus: B-21, missiles, drones, cyber & space - Key role in future conflicts.

Key points:

Q1 2025: revenue -6.6%, EPS $6.06 (adjusted), outlook lowered
Projects: Delays on B-21, but backlog at $92.8 bn.
Valuation: P/E ~17-18, EV/EBITDA ~13, PEG >2
Analysts: 12 Buy / 8 Hold, target price ~+15 %
Dividend: $2.31/Q (+12%), 22-year increase, ~1.9% yield
🟡 Entry from a fundamental perspective: 6/10 - technology leader with short-term pressure

📈 NOC weekly chart (logarithmic) - 50 & 200-week SMA, volume profile

NOC has been moving in a broad sideways channel since the end of 2022 (~ USD 440-540)
Trend: Sideways/Based, within established range
USD 460-465 zone = central key support, has been confirmed
Break above USD 510 necessary to release new momentum
Current: technically neutral with a positive trend if it holds above USD 460 - a good area to hedge
👉 My potential long-term post-buy zone: in the zone around the 200-SMA (USD 460-480)

📍 Huntington Ingalls $HII (+1.59%)

Strategic benefit:

Only US aircraft carrier builder; key role in Navy ships & nuclear-powered submarines.

Key points:

Q1 2025: sales -2.5%, profit -2.6% - production problems (shortage of skilled workers)
Outlook 2025: conservative, stable navy orders, focus on efficiency
Valuation: P/E ~14-15, EV/EBITDA ~11, PEG >2
Analysts: Hold prevails, price target ~+15%
Dividend: $1.35/Q, ~2.5% yield, 13-year increase
🟡 Entry from a fundamental perspective: 5/10 - value case with operational question mark

📈 HII weekly chart (logarithmic) - 50 & 200-week SMA, volume profile

HII is not a trend value, but has been in a large sideways structure for 5 years (approx. USD 180-270)
The most recent recovery after falling back below USD 200 was dynamic, but there is currently no follow-up buying pressure above the 50-SMA
The area around USD 223 (currently) has been a pivotal point in recent years - directionless but stable
Neutral in the long term, weak below the 50-SMA in the short term
Key zone of USD 208-210 as a technical hedge (with high volume)
Break above USD 235 necessary to open up space to USD 260
Currently: range-bound character, with trading opportunities within established range
→ Long-term breakout above USD 270 would be necessary to release new momentum
👉 Currently no additional buying planned

📍 CACI International $CACI (+2.2%)

Strategic benefit:

Specialist in cybersecurity, intelligence & AI - delivers digital capabilities for the modern military.

Key points:

Q3 FY25: revenue +11.8%, book-to-bill >1, guidance raised
Forecast 2025: EPS ~$24, sales ~$8.3 bn, strong organic growth
Valuation: P/E ~18, EV/EBITDA ~12, PEG ~1, debt moderate
Analysts: 20 Buy / hardly Hold - target price +20
Dividend: None - focus on reinvestment & buybacks
🟢 Entry from a fundamental perspective: 8/10 - Growth story in defensive sector

📈 CACI weekly chart (logarithmic) - 50 & 200-week SMA, volume profile

CACI was heavily overbought at the beginning of 2024, followed by a sharp setback to ~340 USD
Rebound at the 50-SMA did not bring new high momentum → rejection with currently -7.3 %
The large volume in the sell-off and the recovery indicate institutional activity, but also increased uncertainty
Structure remains bullish above USD 350but shaky in the short term
Long-term uptrend still intact, but with increased volatility
Break above USD 460 would be technically strong - below that rather range behavior
Current: technically neutral to weak, pullback was too steep to confirm new strength
👉 My potential long-term post-buy zone: Above the 200-SMA (350-370 USD)

🤔 Now it's your turn:

Which defense stocks do you have in your portfolio - or are you currently looking at?

Would you be interested in an analysis of European defense stocks?

📍 Sources:

Charts:
TradingView

+ 4

10 Comments

Tenbagger2024@Tenbagger2024

Thank you, mega introduction.
And good luck with your investments.
😘

•

@AJRC

1Mon·

Gulfstream is back

$GD (+0.7%) Good Q1 and strong performance from the Aviation segment. G700 deliveries and the promising G800 will give a push to GD's revenue.

Remarkable to see Jet Aviation improving year over year.

I think this is a good and still undervalued stock

@AJRC

1Mon·

Good Company, solid performance.

$GD (+0.7%) With Gulfstream catching up on deliveries and the US Navy buying submarines, I see a lot of potential for this stock. If you can benefit from the current Euro/Dollar exchange, this stock will provide good mid term returns at a very attractive price.

Techaktien

@Techaktien

2Mon·

Possible IPOs of German defense companies 🇩🇪📈

- KNDS (Krauss-Maffei Wegmann, Leopard 2, Boxer 2000 self-propelled howitzer, ammunition, AI)

- Quantum Systems (drones, customers in Ukraine & USA)

- Helsing (drones, AI)

Source: https://www.br.de/nachrichten/wirtschaft/ruestungsboom-bayerische-firmen-vor-boersengang,Uf2aNSq

#rheinmetall
#hensoldt
#renk
$RHM (-3.26%)
$HAG (-6.89%)
$R3NK (-4.27%)
$LMT (+1.24%)
$BAE (+0%)
$GD (+0.7%)
$SAAB B (-0.24%)

www.br.deRüstungsboom – Bayerische Firmen vor Börsengang

6 Comments

Naaf@Naaf

2Mon

All in Helsing when they come.🚀

•

Show answer

@BigMo

3Mon·

Impact of 2025 Defense Budget Cuts on Top 15 U.S. Defense Contractors

It's time for an article in English!

As many investors questioned the sharp drops in U.S. defense stocks after Trump took office, I decided to dive into what’s happening behind the scenes.

Introduction

The U.S. defense sector is facing a realignment in 2025 due to proposed budget cuts of about 8% per year over the next five years. This initiative, driven by the new administration, aims to reallocate roughly $50 billion in defense spending toward emerging priorities like border security, Asia-Pacific presence, and advanced technologies. Such cuts would cumulatively reduce annual defense outlays from roughly $900 billion to around $600 billion by the end of the period – about the level of 2017. These changes directly affect the nation’s largest defense contractors, which span aerospace, cybersecurity, shipbuilding, and weapons manufacturing.

The top five contractors –

Lockheed Martin $LMT (+1.24%)

RTX Corporation $RTX (+1.23%)

Northrop Grumman $NOC (+0.69%)

General Dynamics $GD (+0.7%)

and Boeing $BA (+0.95%)

– alone account for a huge share of Pentagon procurement, with defense revenues ranging from $32–65 billion each. This report examines the top 15 U.S. defense contractors and analyzes how the 2025 budget cuts impact their programs, finances, and strategies.

Top 15 U.S. Defense Contractors (by Defense Revenue)

Lockheed Martin ($LMT) – Aerospace & defense prime (e.g. military aircraft, missiles, satellites)
RTX Corporation ($RTX) – Defense systems (missiles, radars, engines)
Northrop Grumman ($NOC) – Aerospace & defense (stealth bombers, space, missiles)
General Dynamics ($GD) – Defense (tanks, submarines, IT systems)
Boeing ($BA) – Aerospace (military and commercial aircraft, space systems)
L3Harris Technologies ($LHX) – Defense electronics (communications, sensors, rocket motors)
Huntington Ingalls Industries ($HII) – Shipbuilding (aircraft carriers, destroyers, submarines)
Leidos ($LDOS) – Defense IT and solutions (cybersecurity, R&D, autonomous systems)
Booz Allen Hamilton ($BAH) – Defense consulting & analytics (cyber, AI, engineering services)
Science Applications International Corp ($SAIC) – Defense IT & logistics support
CACI International ($CACI) – Defense intelligence, IT, and electronics integration
Textron Inc. ($TXT) – Defense platforms (military helicopters, armored vehicles)
General Electric Aerospace ($GE) – Aircraft engines and defense power systems
Oshkosh Corporation ($OSK) – Tactical vehicles and armaments (e.g. military trucks)
KBR Inc. ($KBR) – Defense services (base operations, logistics, engineering)

These contractors collectively cover all major sectors of defense. The following sections detail the specific program impacts, financial performance, and strategic outlook for these companies in light of the 2025 budget cuts.

Programs and Contracts Most Impacted by Budget Cuts

💥 Major Defense Programs Facing Cuts or Changes

F-35 Lightning II Joint Strike Fighter ($LMT) – The F-35 program, the Pentagon’s largest, faces slowed procurement. The Air Force’s FY2025 budget request cut its planned F-35A purchase from 48 to 42 jets, and Congress further reduced the total F-35 buy across services (from 68 to 58) in the 2025 defense authorization.
F-15EX Eagle II Fighter ($BA) – The Air Force is terminating the F-15EX after 2025, capping procurement at 98 jets (down from 104). In FY25 it will buy only 18 F-15EX (vs. 24 planned), reallocating funds to R&D on next-generation air combat.
Columbia-class Ballistic Missile Submarine ($GD, $HII) – Initially flagged for cuts, this nuclear deterrence priority may see stretched or delayed funding, though Congress is likely to resist major delays.
Military Satellite and Space Programs ($LMT, $NOC, $LHX) – Some Defense Space Force programs could see reductions, particularly proprietary satellite constellations, as the Pentagon may turn to commercial solutions.
Surface Ships and Navy Programs ($HII, $LMT) – The Pentagon intends to protect core surface ship programs, but scrutiny may increase on aircraft carriers and large-deck amphibious vessels.
Missile Defense and Munitions ($RTX, $LMT, $LHX) – Funding is being redirected to missile defense and munitions, benefiting contractors like RTX and Lockheed Martin, which produce Patriot, THAAD, and PAC-3 interceptors.

🚀 Strategic Adaptations and Company Outlooks

Lockheed Martin ($LMT) – Focusing on missile defense, hypersonic weapons, and nuclear modernization, while expanding in unmanned tech and space.
RTX Corporation ($RTX) – Strong position in missile defense and hypersonics, with continued demand for Patriot and Stinger missile systems.
Northrop Grumman ($NOC) – Backed by the B-21 Raider bomber and Sentinel ICBM program, positioning for long-term stability.
General Dynamics ($GD) – Prioritizing shipbuilding and armored vehicle exports while sustaining its Gulfstream jet division.
Boeing ($BA) – Emphasizing unmanned aircraft, space, and international fighter sales to offset reduced U.S. fighter jet demand.
L3Harris ($LHX) – Pivoting toward open-systems, agile solutions, and cost efficiency to stay competitive in the evolving defense landscape.

📊 Financial Impact and Stock Performance Post-Cuts

Revenue and Backlog Outlook – Many contractors entered 2025 with historic order backlogs, sustaining revenue for several years. For example, RTX cited a $218 billion backlog, and Lockheed Martin expects 2025 sales of ~$74 billion, up ~45% from 2017 levels.
Stock Market Reaction – Defense stocks initially dipped on budget cut fears but rebounded as investors recognized sector stability. $RTX and $GD have outperformed on strong earnings.
Congressional Mitigation – Bipartisan resistance to drastic cuts suggests final budgets may be higher than initially proposed, easing contractor concerns.

🔮 Multi-Year Outlook and Conclusions

Defense Spending Levels – While the proposed 8% annual cuts are significant, political and geopolitical developments may lead to budget adjustments.
Portfolio Shifts – Contractors are expected to pivot towards emerging technologies like AI, space, cyber, and hypersonics to align with long-term Pentagon priorities.
Industry Consolidation vs. Competition – Mid-tier players may merge for scale, while Silicon Valley firms continue to disrupt traditional defense primes.
Global Defense Landscape – Increased tensions with China and Russia may drive international defense spending, benefiting U.S. contractors through foreign military sales.

In conclusion, the 2025 budget cuts introduce challenges, but the U.S. defense-industrial base remains strong. Contractors that adapt to changing priorities – focusing on innovation, efficiency, and global markets – will be best positioned for long-term success.

What do you think—are these budget cuts a short-term setback or a long-term shift for the defense industry?

Share your thoughts and let’s discuss where the best opportunities might be.

Aktien Stammtisch

@Aktien_Stammtisch

4Mon·

General Dynamics Q4'24 Earnings Highlights:

$GD (+0.7%)

🔹 EPS: $4.15 (Est. $4.30) 🔴; UP +14% YoY

🔹 Revenue: $13.34B (Est. $12.84B) 🟢; UP +14.3% YoY

🔹 Net Income: $1.1B (Est. $1.14B) 🔴; UP +14.2% YoY

🔹 Operating Earnings: $1.42B; UP +10.5% YoY

🔹 Operating Cash Flow: $2.2B (Est. $2.41B) 🔴; 188% of net earnings

Segment Performance:

🔹 Aerospace Revenue: $3.74B (Est. $3.89B) 🔴; UP +36.4% YoY

🔹 Marine Systems Revenue: $3.96B (Est. $3.55B) 🟢; UP +16.2% YoY

🔹 Combat Systems Revenue: $2.40B (Est. $2.20B) 🟢; UP +1.3% YoY

🔹 Technologies Revenue: $3.24B (Est. $3.17B) 🟢; UP +2.8% YoY

🔹 Aerospace Operating Earnings: $585M; UP +30.3% YoY

🔹 Marine Systems Operating Earnings: $200M; DOWN -7.8% YoY

🔹 Combat Systems Operating Earnings: $356M; UP +1.4% YoY

🔹 Technologies Operating Earnings: $319M; UP +4.6% YoY

Key Metrics:

🔹 Backlog: $90.6B; UP +9.1% YoY

🔹 Book-to-Bill Ratio: 0.9-to-1 for Q4, 1-to-1 for FY'24

🔹 Total Estimated Contract Value: $144B

Major Contracts & Defense Awards:

🔸 $5.6B U.S. Air Force contract for modernizing Mission Partner Environments (MPEs)

🔸 $2.2B U.S. Space Force contract for sustainment services on the MUOS satellite system

🔸 $1.9B U.S. Navy contracts for Virginia-class submarines services & materials

🔸 $370M U.S. Army contract for 155mm artillery projectile parts

🔸 $820M in munitions & ordnance contracts

🔸 $1.4B in classified defense contracts

Capital Allocation & Shareholder Returns:

🔹 Cash & Equivalents: $1.7B

🔹 Capital Expenditures: $916M

🔹 Total Shareholder Returns in 2024: $3.0B

🔸 Stock Repurchases & Dividends Paid: $3.0B

CEO Phebe Novakovic’s Commentary:

🔸 "General Dynamics had a solid Q4, capping a year of steady growth in revenue and earnings across all four segments. Strong order activity and a 1-to-1 book-to-bill ratio position us well for continued growth."

Daniel

@Bidax

4Mon·

Refurbished and finally found the base

A lot of time has passed since my introduction over a month ago and the one or other post. I was not satisfied with my smorgasbord and have once again taken a serious and intensive look at the subject of the stock market.

Thoughts, suggestions from some nice people here on GQ and also posts https://getqu.in/WB1phr/ have really helped me here.

Thank you for that. @DonkeyInvestor , @Mister_ultra , @Epi , @Ph1l1pp , @ShrimpTheGimp , @MoneyISnotREAL , @Staatsmann

After the introductory words, now to the presentation of my portfolio.

I have finally decided on a strategy that I find suitable for me. The core-satellite strategy. Investment period 20 years.

I will gradually reallocate my previous investments and save an additional 600 euros per month in the portfolio.

For me, the decisive point here was that I continuously build up the "core" and use the satellites to pursue my "ideas" and also generate dividend income.

The percentage allocation of the investments to my individual satellites was based on the average return over the last 10 years.

Core (60%)

-----------------------------------------------------------------------

HSBC MSCI World UCITS ETF - $HMWS (+1.51%) - Share 60.0%

Satellites (40%)

-----------------------------------------------------------------------

HSBC MSCI Taiwan Capped UCITS ETF - $HTWN (+0.18%) - Share 4.9%

Xtrackers Euro Stoxx 50 UCITS ETF - $XESX (+0.7%) - Share 2.4%

Invesco Technology S&P US Select Sector UCITS ETF - $XLKS (+2.22%) - Share 7.8%

Xtrackers Artificial Intelligence and Big Data UCITS ETF - $XAIX (+1.92%) - 7,0%

iShares MSCI World Energy Sector ETF - $WENS (+1.68%) - Share 4.2%

Global X Defense Tech UCITS ETF - $ARMG (-0.38%) - Share 3.6%

EUWAX Gold II - $EWG2 (-0.01%) - Share 3.0%

Bitwise MSCI Digital Assets Select 20 ETP - $DA20 (+6.01%) - Share 7.0%

Notes on the satellites:

An MSCI Emerging Markets would be a suitable addition to the core MSCI World. As most emerging markets ETFs rate China quite highly, but I am not convinced of this, I have picked Taiwan and chosen the MSCI index there. $HTWN (+0.18%)

Technology $XLKS (+2.22%) and AI $XAIX (+1.92%) are still markets which, in my opinion, have a lot of potential. These two areas are also the reason why I invest in energy $WENS (+1.68%) because the energy demand for AI, cloud, etc. is high.

I still see defense as a trend and have finally opted for the Global X Defense Tech $ARMG (-0.38%) final decision. In my previous post on this, I was more interested in the HANetf Future of Defense $ASWC (+0.99%) . As the European investment volume of the two ETFs (HanETF = 29.38%, Global X = 28.08%) is almost the same, but the Global X $ARMG (-0.38%) invests more in the market leaders (Lockheed $LMT (+1.24%) Northrop $NOC (+0.69%)General Dynamics $GD (+0.7%) etc.), it has now been included in the final selection.

I cover the currency sector with EUWAX Gold II $EWG2 (-0.01%) and Bitwise MSCI Digital Assets Select 20 $DA20 (+6.01%) . As you have seen from my previous posts, I am reluctant to invest in crypto. That's why it's "only" the Bitwise MSCI Digital Assets Select 20 ETP. This ETP tracks the 20 leading investable crypto assets and is therefore effectively the "MSCI World" for the crypto market.

PS: I have adjusted the crypto ETP slightly downwards in the percentage distribution with a minus of 50%.

downwards. If anyone actually looks at the table, -50% in 2022 is inserted by MIR for regulatory purposes 😉

I look forward to your feedback.

Best regards

Daniel

39 Comments

VP@VPT

4Mon

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.

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View all 4 further answers

Aktien Stammtisch

@Aktien_Stammtisch

4Mon·