10Lun
Why people go to the trouble of trading individual stocks is beyond me. In the long term, no one beats the index or the computer. My ETF $XDEQ has made the same 6%.
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@goebi22 I would also like to know
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@goebi22 @MargenKing
First of all: everyone can invest as they see fit!
Based purely on the ETF mentioned above. It is up +6% YTD and +21% over 1 year. My portfolio is +9% and +24% respectively
Since I started investing (2013), my performance has been +181%, while my benchmark (MSCI World) is +170%.
-> I have therefore managed to outperform the index so far
Whether the effort for this ~11% difference was worth it is of course another matter. This is where the second argument comes into play for me: fun or interest. Investing in an ETF is efficient, but also boring ("modern savings account"). Personally, I have much more fun looking for exciting stocks and learning and understanding how they work. Whether AI, metaverse, cybersecurity,... I'm interested in a lot of this because I'm intensively involved with the companies.
More frequent distributions: I like to see dividends flowing into my account and growing every year. With an ETF, I have a maximum of 4 per year.
Saved TER: The TER for the specified ETF is 0.25%. Assuming I reach 1 million in my custody account at some point, that's €2,500 in fees paid to the ETF every year. Whereas my portfolio of individual shares is "free of charge".
I can control how I set up my portfolio myself (for me, mainly more tech, more US, no Tesla, no telecoms and so on). ESG doesn't play a role for me, but here too there may be investors who don't want to invest in armaments but don't care about oil or tobacco, for example. I can do all that with a portfolio of individual stocks.
With one share I can, if I wish, attend the Annual General Meeting and eat for free ;)
As I said, there is no right or wrong in my eyes. One thing is clear: the less experience you have or the less time you want to spend, the better a simple ETF is (incidentally, this is my recommendation for most of my family members and friends).
For me personally, the other reasons outweigh the others, which is why I opted for a portfolio of individual shares (+ selective ETFs). So far, the performance has proved me right, but I can also understand other arguments.
Everyone has to find the right one for themselves and as long as you don't massively underperform the index, it's not an issue (if I make 3% instead of 7% p.a. on balance, I would also recommend using an ETF).
First of all: everyone can invest as they see fit!
Based purely on the ETF mentioned above. It is up +6% YTD and +21% over 1 year. My portfolio is +9% and +24% respectively
Since I started investing (2013), my performance has been +181%, while my benchmark (MSCI World) is +170%.
-> I have therefore managed to outperform the index so far
Whether the effort for this ~11% difference was worth it is of course another matter. This is where the second argument comes into play for me: fun or interest. Investing in an ETF is efficient, but also boring ("modern savings account"). Personally, I have much more fun looking for exciting stocks and learning and understanding how they work. Whether AI, metaverse, cybersecurity,... I'm interested in a lot of this because I'm intensively involved with the companies.
More frequent distributions: I like to see dividends flowing into my account and growing every year. With an ETF, I have a maximum of 4 per year.
Saved TER: The TER for the specified ETF is 0.25%. Assuming I reach 1 million in my custody account at some point, that's €2,500 in fees paid to the ETF every year. Whereas my portfolio of individual shares is "free of charge".
I can control how I set up my portfolio myself (for me, mainly more tech, more US, no Tesla, no telecoms and so on). ESG doesn't play a role for me, but here too there may be investors who don't want to invest in armaments but don't care about oil or tobacco, for example. I can do all that with a portfolio of individual stocks.
With one share I can, if I wish, attend the Annual General Meeting and eat for free ;)
As I said, there is no right or wrong in my eyes. One thing is clear: the less experience you have or the less time you want to spend, the better a simple ETF is (incidentally, this is my recommendation for most of my family members and friends).
For me personally, the other reasons outweigh the others, which is why I opted for a portfolio of individual shares (+ selective ETFs). So far, the performance has proved me right, but I can also understand other arguments.
Everyone has to find the right one for themselves and as long as you don't massively underperform the index, it's not an issue (if I make 3% instead of 7% p.a. on balance, I would also recommend using an ETF).
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•10Lun
@Mister_ultra Yes, I can understand that. If you don't see the constant stock watching, buying and selling as work and value it that way, it can have advantages. But if I calculate the time it takes to deal with shares against my hourly rate, it doesn't even pay off if I outperform the market by a few percent. And I think it's questionable whether anyone can do this in the long term - most fund managers fail.
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@goebi22 The question here is, of course, the hourly rate. This only works if your income is scalable.
In my case or in most 40-hour salaried jobs, your salary is fixed and overtime is not paid.
This means I have to weigh up between stock research and working an extra hour a day for X euros.
Another question: I find it more pleasant to do a bit of stock research on the sofa in the evening than to work 1 hour more with the corresponding stress.
In my case or in most 40-hour salaried jobs, your salary is fixed and overtime is not paid.
This means I have to weigh up between stock research and working an extra hour a day for X euros.
Another question: I find it more pleasant to do a bit of stock research on the sofa in the evening than to work 1 hour more with the corresponding stress.
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