10Lun·

MSCI Factor ETF comparison

DerDanner · 2024-03-04T10:06:48.620092Z

$IS3R Momentum 0,3TER $IS3Q Quality 0,3TER $IWVL Value 0,3TER $IWDA World 0,2 TER Laut MSCI, läuft der Momentum und der Quality ETF besser wie der World ETF. Die Positionen sind geringer und konzentrierter wie beim World ETF. Für euch eine World-Option? Was sagt ihr dazu? Da ich keinen ETF besitze und sonst Qualitätsaktien halte, kann ich mir einen Momentum ETF als Beimischung gut vorstellen. Bin mir aber nicht sicher ob ich einen der ETFs wählen würde wenn ich nur auf einen einzelnen ETFs setzen müsste.

$IS3R (+0,62 %) Momentum 0.3TER

$IS3Q (+0,54 %) Quality 0.3TER

$IWVL (-0,59 %) Value 0.3TER

$IWDA (+0,56 %) World 0.2 TER

According to MSCI, the Momentum and Quality ETFs perform better than the World ETF. The positions are smaller and more concentrated than in the World ETF.

A world option for you?

What do you think?

Since I don't own an ETF and otherwise hold quality stocks, I can well imagine a momentum ETF as an addition.

But I'm not sure whether I would choose one of the ETFs if I only had to bet on a single ETF.

22 Comentarios

GeldmitKopf@cashwithhead

10Lun

If so, I would take the Quality. The momentum more or less always follows the trend, whereas the quality simply picks out good stocks that can bring promising performance

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DerDanner@Therapeut

10Lun

@cashwithhead My stock selection is similar to Quality.
If you were to add an ETF, would it be an AllWorld or World?
I have the idea of letting it run until I retire.
Am I missing out on returns with the Allworld? Would Momentum be too much risk for that?

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GeldmitKopf@cashwithhead

10Lun

@Therapeut you have to ask yourself whether you think the EM has a future, if not then the World.
Then you have to ask yourself whether you want to have a filter and whether the trend should be driven or data-driven. The Momentum's biggest risk is if the trend grows quickly then it only lags behind. If the trend goes over a longer period of time it is the better factor

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Na D.@user24280df1bf3d4d22

10Lun

Over a long time scale, no one factor applied to a market cap weighted index can beat the underlying market cap weighted index. If it did, the underlying index would eventually start to mimic that factor index. You can have outperformance in short run based on the valuations, economy conditions etc.

But nothing wrong in picking one or more factors you like and investing in them.

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Gerit@Gerit

10Lun

This would also be interesting to observe in other market phases, not just in a zero interest rate bull run 😅

Edit: but thanks for the preparation! So much effort must be appreciated here 🙏🏻

What I have noticed so far over the past few years is that classic value investing simply works best over long periods of time.

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DerDanner@Therapeut

10Lun

@Gerit Since I am very concentrated in quality stocks, would you prefer to invest in an Allworld or World?

I have the idea of mainly running an ETF later on to buy shares in certain situations.

With the Allworld, I am broadly positioned but would have less return than with the World? And the Quality/Momentum/Value would be better than the World. Mhmm😂

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PowerWordChill@PowerWordChill

10Lun

@Therapeut You can't know today whether you'll make less return with the Allword 😉.
Why don't you make a factor tilt?
50% Allworld / ACWI and fill up the rest with factor ETFs.
(Quality / Momentum / Value / Size)

OR buy $GERD right away 😅

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Gerit@Gerit

10Lun

@Therapeut if you invest in a very concentrated way and things are going reasonably well, you are constantly improving and can then somehow look back over 4-7 years with a decent performance, I see no benefit in an ETF.

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PowerWordChill@PowerWordChill

10Lun

Bitch please, these are Pokemon for me and I have them ALL! 😎

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Waldo@Waldo

10Lun

Whereas the quality index might perform better, the connected etfs usually have a much higher cost, resulting in lower overall gains, at least that was my analysis outcome early last year.

The momentum index I held for a while but as you can also see from the data, it's performance is not consistent. I struggle to understand how and when best to use it, so I sold.

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Schnoto@Schnoto

10Lun

Take a look at $IQSD. It is a multi-factor ETF that has performed very well so far and is very suitable as a supplement.

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DerDanner@Therapeut

10Lun

@Schnoto Is it running in your depot?

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Schnoto@Schnoto

10Lun

@Therapeut Has been in my portfolio since the beginning of February. The composition and "historical development" convinced me.

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DerMartin@DerMartin

10Lun

I would weight the top 3 equally and balance them with savings plans.

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Paketknecht@Paketknecht

10Lun

You have made a mistake in the factsheets, the $IWVL does not track the MSCI World Value but the MSCI World Enhanced Value.

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DerDanner@Therapeut

10Lun

@Paketknecht thanks ups

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DerDanner@Therapeut

10Lun

@Paketknecht just looked up the ISIN matches, looked it up at Ishares
IE00BP3QZB59
This is the Value, then the name at getquin is not correct.

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Paketknecht@Paketknecht

10Lun

@Therapeut That's all true, but the screenshot you have attached here is of the MSCI World Value, but there is no ETF of it. All the value factor ETFs track the Enhanced Value Index, which is a different index.

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SP@spellwan

10Lun

I can't get my head around the differences between ETFs. Can anyone recommend me a book or channel on YT.

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DerDanner@Therapeut

10Lun

@spelvan What don't you understand?

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SP@spellwan

10Lun

@Therapeut There are so many, and as I have noticed, differences. So far I have only invested in individual shares. I would now like to invest in ETFs.

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DerDanner@Therapeut

10Lun

@spelvan same, only have shares

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