3D·

Tax trick - does reallocation make sense?

Min-Vol ETF $MVOL (-0,78 %) bought at ATH, now ~ -200 €.

Thinking about selling + shifting into MSCI ACWI $ISAC (+0,73 %) after.

Advantage:

Loss makes my dividends tax-free this year (FSA already full).

Question for you:

Are there any disadvantagesif I do this - or would you take the tax effect with you?

6 Comentarios

Kreon@Kreon

The real question is: do you believe that the $ISAC will outperform the $MVOL in the future? The tax consideration is then secondary, isn't it?

•

Dagobert D.@bbh_saver_

@Kreon You're right about that. In fact, I believe that the Acwi could deliver a better performance in the long term. I have noticed, especially with $MVOL, that the index recovers much more slowly after price setbacks.

••

Dagobert D.@bbh_saver_

@Kreon What is your assessment?

••

Julian@MoneyISnotREAL

@bbh_saver_ Well, you're specifically choosing an ETF that doesn't fall so much in downward market phases.

If you now compare your $MVOL with an MSCI World, for example, the Minimum Vola has done what it is supposed to do: Lower drawdowns.

It is also logical that it does not currently deliver the performance of a global ETF, as the big tech companies are currently the return drivers. These are not weighted as heavily or only slightly in the minimum vola.

You should think about why you added the minimum vola - it won't have been because of the excess return... 😉

-Since 2003, this ETF has delivered an average return of approx. 8% p.a.
- during the financial crisis it had approx. 20% less drawdown (than an MSCI World).
- lower volatility on average compared to the MSCI World.

•

Kreon@Kreon

@MoneyISnotREAL I have nothing to add

•

Dagobert D.@bbh_saver_

@MoneyISnotREAL Thank you for your detailed answer! You're right, it's important at times like this to remind yourself why the investment decision was made.

•