Hi folks

investment_sage_1668 · 2025-02-06T13:50:19.598577Z

I would like to add an etf to weight the EM portion a little more. I am currently 100% in $VWCE I was thinking that the $IBC3 fit in quite well or what do you think? if you know a better EM, please let me know

JH90@JH90

5D

Would rather bet on winners and add a Nasdaq or S&P500 ETF. Wouldn't increase the emerging markets component. Take a look at the charts and the annual return.

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investment_sage_1668@investment_sage_1668

5D

@JH90 Don't you think that EM could generate much more growth in the future?

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JH90@JH90

5D

@investment_sage_1668 No, I don't think so.

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Pedi@Pedi

3D

@JH90 and I would rather advise against these "winners" or against such thoughts and then rather continue to save in an ALL-World. You simply have a cluster risk with the NASDAQ/S&P 500. If you don't understand why these "winners" in particular have grown very strongly and don't understand the opportunities that could arise from emerging markets, etc., then you're better off with an ALL-World. Past returns are no guarantee of future returns. I myself still have $XMME, $WSML 5% and more $MEUD to push US share below 40%. Generally speaking, the question is whether you want more emerging markets or not. At the moment, these have performed worse, but we don't have a crystal ball. In any case, don't mindlessly buy an ETF that is only active in one country or sector without understanding the risks just because it's a winner. But keep in mind that you already have emerging markets in $VWCE. You are doing an ALL-World for diversification and risk reduction, and they already have 60-70% USA. It's a bet on emerging markets 😉

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JH90@JH90

1D

@Pedi and who says that emerging markets will outperform an S&P 500 or so at some point? Lots of ifs and buts

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Pedi@Pedi

1D

I didn't say that, but I find the statement "bet on winners" critical. And with NASDAQ and S&P he will increase his cluster risk on a country basis. For which he has achieved better returns in the past. More risk, more return 😉

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Marcel@Mcl1991

5D

You can do this if you want. With the $IBC3 (edit: the $EIMI is often used because ACC) you also have small caps in there. This makes it even more diversified. It is also often used for a 70/30 strategy

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investment_sage_1668@investment_sage_1668

5D

@Mcl1991 I was thinking that if I were to go 70/30, I would use the 30% as a distribution in the EM. Or would that be nonsense and acc always makes more sense? I'm still young and the plan is definitely for the next 20-30 years.

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Marcel@Mcl1991

5D

@investment_sage_1668 An ACC makes more sense for asset accumulation because you don't have to worry about reinvesting. The advantage of the dist would be that you could utilize the tax-free amount somewhat. However, you have to reinvest the distribution directly so that asset accumulation is more effective. So both have their advantages and disadvantages.
Personally, I'm more satisfied with ACC etf. You don't have to worry about anything and everything runs by itself.

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investment_sage_1668@investment_sage_1668

5D

@Mcl1991 Thank you for your opinion

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Saschko@WarrenamBuffet

5D

Alternatively, $DEMD or $ZPRA can be used if there is a focus on dividends.

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investment_sage_1668@investment_sage_1668

5D

@WarrenamBuffet thanks, I will have a look

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INVESTDALF@der_Ahnungslose

5D

It wasn't your question but, unlike the $IBC3, the $EIMI would be accumulating and not distributing. It would also be worth considering $VWRL instead of $VWCE.

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investment_sage_1668@investment_sage_1668

5D

Oh that was my mistake, I have the $VWCE 😅

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investment_sage_1668@investment_sage_1668

5D

@der_Ahnungslose Would you generally always choose accumulating or would you choose the 30% distributing in EM at 70/30?

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INVESTDALF@der_Ahnungslose

5D

@investment_sage_1668 That's up to you. It all has advantages and disadvantages. I personally use accumulating etfs. It simply has tax advantages.

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PointiM@PointiM

5D

The FTSE All World includes emerging markets anyway 🤷‍♂️

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investment_sage_1668@investment_sage_1668

5D

@PointiM That is correct, but as I have already written, I am toying with the idea of weighting the proportion a little higher.

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DADlikesCRYPTO@DADlikesCRYPTO

5D

What weighting do you have in mind?
Brazil, India, China, Japan, Belgium - there are all kinds of different things.

$VFEM I have personally.
EM are just not yield rockets. 😁

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INVESTDALF@der_Ahnungslose

5D

@DADlikesCRYPTO Well, not in the last 15 years... Before that, EM did better than many others. And nobody can predict whether that won't change again...

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DADlikesCRYPTO@DADlikesCRYPTO

5D

@der_Ahnungslose I also have it as an admixture and am satisfied.
You have to think about it, but it is definitely an option.

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