Invesco Technology S&P US Sel Sector ETF

ETF

ISIN: IE00B3VSSL01

Ticker: XLKS

IE00B3VSSL01

XLKS

Price

Debate sobre XLKS

Puestos

trade_samurai_34

@trade_samurai_34

3Semana·

IWDA vs. XLKS - Which ETF for Long-Term Growth?

Hi all,

I’m torn between $IWDA (-1,03 %) (iShares MSCI World ETF) and $XLKS (-2,06 %) (Tech Select Sector SPDR ETF) for long-term investing (10+ years). IWDA offers broad global diversification, while XLKS focuses on US tech with higher growth but more risk.

Which aligns better for balanced growth? Would a split allocation make sense? Also, how do you see the risk/reward in todays market?

Appreciate your insights!

Thanks

2 Comentarios

dOk@doks

3Semana

For long term, no doubt about $XLKS

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Daniel

@Bidax

3Semana·

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%)

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HSBC MSCI World UCITS ETF - $HMWS (-1,05 %) - Share 60.0%

Satellites (40%)

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HSBC MSCI Taiwan Capped UCITS ETF - $HTWN (-0,4 %) - Share 4.9%

Xtrackers Euro Stoxx 50 UCITS ETF - $XESX (-0,34 %) - Share 2.4%

Invesco Technology S&P US Select Sector UCITS ETF - $XLKS (-2,06 %) - Share 7.8%

Xtrackers Artificial Intelligence and Big Data UCITS ETF - $XAIX (-2,35 %) - 7,0%

iShares MSCI World Energy Sector ETF - $WENS (-1,71 %) - Share 4.2%

Global X Defense Tech UCITS ETF - $ARMG (-0,54 %) - Share 3.6%

EUWAX Gold II - $EWG2 (+0 %) - Share 3.0%

Bitwise MSCI Digital Assets Select 20 ETP - $DA20 (-3,32 %) - 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 (-0,4 %)

Technology $XLKS (-2,06 %) and AI $XAIX (-2,35 %) 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 (-1,71 %) 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 (-0,54 %) final decision. In my previous post on this, I was more interested in the HANetf Future of Defense $ASWC (-2,25 %) . 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 (-0,54 %) invests more in the market leaders (Lockheed $LMT (+2,16 %) Northrop $NOC (+2,66 %)General Dynamics $GD (-0,57 %) etc.), it has now been included in the final selection.

I cover the currency sector with EUWAX Gold II $EWG2 (+0 %) and Bitwise MSCI Digital Assets Select 20 $DA20 (-3,32 %) . 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 Comentarios

VP@VPT

3Semana

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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Ver todas las 4 respuestas adicionales

JIX

@JIX

11Lun·

Hello everyone!

Small introduction: very new to getquin and "focussed" investing. 34 years old, Belgian, and I have done some very small investing (buying stocks, bonds, crypto) in the past few years, but never gave it too much thought and effort (total below 4 figures and did not have the time (work and 3 kids :-)).

Being self-employed, last year brought some large shifts. I have some spare time and am investing around 50k at the moment (which is a lot for me compared to some other portfolios I see here on getquin these past few days). I find myself enjoying following the markets and reading up on technical analysis a lot. Definitely not in this for day trading, but for the long term.

So goals: long term + have something better than the savings account our bank offers (which is not that hard).

I know myself and I get “enthusiastic” quickly about something, so in order to keep me from investing everything into crypto for example, I set these percentages for the ETFs, stocks and crypto I am investing in. This allows me to see where to put new money or what to buy next. Definitely keeping me from dumping everything into $BTC (+0,84 %) at the moment :-).

What I am looking for, honest advice or feedback on this strategy and percentages. I am in the tech business myself, partially explaining the tech heavy focus. Again, I enjoy watching the markets and taking some risk, hence not going 100% $IWDA (-1,03 %) or other single world ETF strategy ;-).

Thank you!

WORLD (30%)

25% $IWDA (-1,03 %) to cover the developed world

5% $EIMI (+0,06 %) to cover the emerging markets

S&P500 (30%)

20% $CSPX (-1,14 %) to track main S&P500

5% $XLKS (-2,06 %) for heavy tech focus

5% $GMVM (-1 %) for sustainable focus

TECH THEMATIC (10%)

5% $CSNDX (-1,63 %) to track nasdaq

5% $SEMI (-2,59 %) focus (AI) tech

REGION (10%)

5% $IJPA (-0,33 %) tracking Japan due to personal interest

5% $CSSX5E (-0,33 %) focus on EU

CRYPTO (10%)

9% $BTC (+0,84 %)

1% $ETH (+3,42 %)

OTHERS (10%)

5% $PHGP (+0,28 %) tracking gold for stability and fun

5% small stocks combined, personal interest in specific companies

12 Comentarios

deodorhunter@deodorhunter

11Lun

Hi Jonas, welcome!
Read this as food for thoughts as this is my personal opinion and you and only you have to be satisfied with your investment :)
Plan in general seems good, but maybe it needs some ironing out.

Have you analysed the compositions of these ETFs in terms of underlying stocks? There is a lot of overlapping in percents across different ETFs.
That esg etf has high ter and esg is not always the best thing in terms of performance
Not sure about heavy tech focus etf, you have that already with Nasdaq, AI and s&p500, I would concentrate there.
Maybe add some single Microsoft shares, you have it all at Microsoft in terms of macro trends.
I would also evaluate in detail all-world vs world+em with some backtesting and probably exclude china at least for the short medium term
Regional ETFs are a preference, not much to add here, just watch out for the developments of yen in the near term when choosing a japan etf (hedged or not).

All the best

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