Hell nah over diversification leads to underperformance lil bro
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11Lun
@KapriolenCapital thanks for your answer. Would you say there is some particular ETF choice which is bad? I know some of them have overlaps, but not all. And if most of the equity ETFs are correlated why is it bad?
I also see in you portfolio that you have most of it in $CL2 . This has a TER at 0.5% (high!), and a max drawdown since inception of almost -60%. This is not particularly attractive to me. Too high risk.
I also see in you portfolio that you have most of it in $CL2 . This has a TER at 0.5% (high!), and a max drawdown since inception of almost -60%. This is not particularly attractive to me. Too high risk.
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@mihaipr My portfolio is not synced here as I use a custom build tracking solution. The leveraged ETF I use comes with active buying rules that are based on moving averages and are not as simple as a normal saving plan. It only marks up to 20% of my portfolio but I agree it needs high risk appetite and I wouldn't recommend it to you.
I would kick the dividend ETFs as they underperform accumulating ETFs. Did you consider going into dividend aristocrat stocks or buying corporate bonds? Also I would drop the europe ETFs as I don't see any outperformance compared to the US ETf peers besides choosing specific stocks.
Keep it simple and don't collect ETFs like pokemon. When they are highly correlated it makes no sense. Rather dive into other asset classes like crypto or look into alternative investments. I make concentrated bets in several assets classes and with that comes real healthy diversification and not that illusion that appears with those highly correlated ETF collections.Also this bond/equity allocation seems to be outdated.
I would kick the dividend ETFs as they underperform accumulating ETFs. Did you consider going into dividend aristocrat stocks or buying corporate bonds? Also I would drop the europe ETFs as I don't see any outperformance compared to the US ETf peers besides choosing specific stocks.
Keep it simple and don't collect ETFs like pokemon. When they are highly correlated it makes no sense. Rather dive into other asset classes like crypto or look into alternative investments. I make concentrated bets in several assets classes and with that comes real healthy diversification and not that illusion that appears with those highly correlated ETF collections.Also this bond/equity allocation seems to be outdated.
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•11Lun
@KapriolenCapital which other asset classes? I have ~5% in commodities, ~8% in gold and ~7% reits (all etfs). Gold and commodities should offer me some protection in black swan events (which is what I fear the most for the coming 2 years). Crypto is not something I'm keen on, I would not put more than 2% and not in this portfolio. It seems very speculative, and I don't see the added value of it, besides transferring huge sums of undeclared money when going in another country.
Thank you for the answer, it means a lot to hear some feedback!
Thank you for the answer, it means a lot to hear some feedback!
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11Lun
@KapriolenCapital there are 2 etfs on dividend aristocrats. one is S&P US and S&P Euro dividend aristocrats. I consider getting rid of those. The idea was that a small stream of income through dividends would be nice, as money now is worth more than money in 20 y.
Corporate bonds are included in the global aggregate bonds. $0GGH
Corporate bonds are included in the global aggregate bonds. $0GGH
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@mihaipr Isnt the best protection againt black swan events a multi currency cash position to buy the dragged down assets? I respect your risk level for crypto.My mindset is that I have time as I'm young so that I can take risks. In Germany you can sell crypto after a one year holding period without paying taxes on it. The same goes with Watches as Watches are defined as day to day good. Maybe you have such attractive tax rulings where you live for some assets just as an idea. Commodities can be great but the mostly underperform and cost performance as they tend to be cyclic. Collectibles, whiskey, wine ... there is so many options which need research and setup but can flourish.
Btw. the shady players in crypto get less and less. I ignore the noise of picture NFTs and rather applaud the regulation and integration into traditional financial markets(see ETF BTC approval and oversee rules for transfers) Cash has a much higher portion of undeclared money transactions. But I can still understand your choice here.
Remember I'm not a licensed advisor I just wanna give you ideas ✌️
Btw. the shady players in crypto get less and less. I ignore the noise of picture NFTs and rather applaud the regulation and integration into traditional financial markets(see ETF BTC approval and oversee rules for transfers) Cash has a much higher portion of undeclared money transactions. But I can still understand your choice here.
Remember I'm not a licensed advisor I just wanna give you ideas ✌️
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