6H·

Brief presentation of self-made ACWI-IMI portfolio with satellites

Hello dear Getquinners,

I started investing in securities at the beginning of the year.

For many years, we parked our assets in call money accounts, which meant that we lost money for years due to high inflation with (negative) compound interest effects. I now want to change this and have therefore decided to invest some of our assets in the capital market.

We are a family with two small children (aged 1 and 4). We parents are in our mid-30s and in the middle of our working lives.

My goals/hopes are:

long-term investment >10 years and more
Inflation protection and (real) asset accumulation beyond overnight interest rates
If necessary, partial transfer of assets to help the children get started when they come of age

As I don't want to gamble, it should be as "simple" as possible to handle and I am not a daredevil, I have created a "boring" ACWI-IMI portfolio.

We have invested around 60%, the rest is free liquidity, which would last for around 12-14 months without income given our current cost of living. A little conservative perhaps, but that's a start. I also don't want to get scared if the markets take a nosedive.

This is how it looks:

75% core:

55% MSCI World $IWDA (+0,36 %)
10% MSCI World Small Cap $WSML (+0,52 %)
10% MSCI Emerging Markets IMI $EIMI (+2,19 %)

8.5% Precious metals

Physical gold $IGLN (-0,79 %)

15% Satellites with approx. 2% each

$IB1T (+1,26 %) Bitcoin share with high opportunity and high risk. Personally, I am not yet completely convinced of this position, I see the "intrinsic" value of a (this) digital currency as being confronted with major environmental problems and am therefore critical. On the other hand, it is supposed to be "digital gold". We will see in the future what is true and what is not...

$SEMI (+1,99 %) and $XDWT (+0,84 %) I believe in the AI boom and growing markets in digitalization, and see growth opportunities there, but also risks. Naturally increases the USA share in the portfolio...

$$DFEN (+0,75 %) : Anti-cyclical position in the current increasingly global conflicts. Defense spending is rising worldwide...

$WMIN (+1,09 %) and $RARE (+1,51 %) as a commodity mix in basic materials. See this as an opportunity with risk, but perhaps this also reacts anti-cyclically to weak markets

$GERD (+0,63 %) as a personal experiment, as I have read and heard a lot from Gerd Kommer. Can be seen as a core holding, perhaps as a benchmark to the core. I wanted to give it a try.

I also toyed with $WNUC (-0,82 %) but I have to think about whether I really want to invest in nuclear technology (personally subjective thing...). I also read and follow 3XGTAA with interest, but that's too risky for me (for now), for now I'll stay in the World fairway...

Monthly savings installments go equally into the core. I plan to rebalance once a year during the Christmas vacations.

I read a lot in the community and regularly follow the posts. Time and again I also read negative statements about sector and industry bets.

I would be interested to know what you think of my portfolio and why some of you think that sector and sector bets are bad.

Thank you for your feedback and for your consistently excellent contributions to the community!

14 Comentarios

Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

2% weighting for BTC and thematic ETFs is unfortunately completely pointless. Unnecessarily complicated in form and without any significant impact on the overall portfolio. Unfortunately, the purpose is not clear to me at all.🤷🏼‍♂️

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Harry@Deutschland

@Get_Rich_or_Die_Tryin So you would give more weight to fewer satellites. I'll take that with me. THANKS

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

@Deutschland exactly like this. Or keep it completely simple: $SPYI, $BTC, $965515 🤷🏼‍♂️ Weighting 60/15/25 or 60/20/20

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Dividendenopi👴@Dividendenopi

Keep it simple is probably the motto in the ETF sector 😇 What's wrong with the core at $SPYI? Why tinker around yourself? In my view, gold is weighted too low for your project. Take 15 or 20% and the rest directly in $BTC. These extremely underweighted satellite theme ETFs are rather counterproductive. You run after the trends and have to constantly adjust. It's better to have less gold and 2 or 3 hand-picked individual stocks from the sectors.

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Wealth-Accelerator@Wealth-Accelerator

@Dividendenopi
I would have given similar feedback.
In the sense of: make it easier for yourself.
Take a $SPYI and put 85% in there.
10% in gold and 5% in $BTC.
And that's it ✔️

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Harry@Deutschland

@Dividendenopi THANKS for the feedback. My idea was to have more flexibility and to be able to implement a slight overweighting on EM or small caps. Also possible with $SPYI, if you buy accordingly $EIMI or $WSML... "You run after the trends, you have to constantly adapt" THAT is the reason for the problem with thematic ETFs. I'm beginning to understand that. THANK YOU!!!

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U1F34E@U1F34E

Thematic ETFs sound exciting, but are often not a good investment. A lot of hype is usually already included in the price, the fees are higher, the diversification is poorer and a future trend does not automatically mean good returns. In the end, the providers often benefit more than the investors. Why did you decide against $SPYI and how do you rebalance?

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Harry@Deutschland

@U1F34E I understand the point. I read that these ETFs are only launched when the trend is already underway... I will critically scrutinize the satellites -> THANK YOU for your feedback!

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Harry@Deutschland

@U1F34E I rebalance once a year if there are deviations of 2-3% from the target. That's the plan.

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Musikerie@Musikerie

Really good ... I have nothing against sector bets. The basic idea makes sense. You assume that the whole sector will grow and since you don't know who will prevail, you buy them all. The winners always take over the market shares of the losers. However, some exaggerate, limit yourself to a maximum of 2 sectors and don't take some half-hearted etf whose composition is questionable.

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Harry@Deutschland

@Musikerie Thank you very much for your answer! I have already read the satellites and have not chosen them at random. Of course you can think about the number. There's an overlap at $SEMI and $XDWT,... But I wanted to cover both hardware and software.

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Faule S.@Faule_Socke

I have $GERD myself as a benchmark :-)
If you believe in defense, you should also add some $IVDF - has almost no correlation to $DFEN and complements it perfectly

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Harry@Deutschland

@Faule_Socke THANK YOU for the tip, I'll take a look at it

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

49Min

@Faule_Socke What exactly do you mean by correlation? If you mean: there is almost no overlap in the values, then that may be true (not checked by myself), but it has absolutely nothing to do with the correlation.☝🏻

The correlation is probably pretty close to 1 when I look at the performance of both ETFs in the chart. They run absolutely identically through all phases that they have been able to track so far, so they are highly correlated.🤷🏼‍♂️

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