I see a few ETF/Fonds with very high TER. Those were the first positions I would close and invest in ETFs with lower TER.
One has a TER of 2.25%. Do they outperform the market that much???
Even better to streamline the portfolio and don't split between 4-5 ETF plus satellite shares.
You are overweighted in China, but if this is your strategy then okay.
One has a TER of 2.25%. Do they outperform the market that much???
Even better to streamline the portfolio and don't split between 4-5 ETF plus satellite shares.
You are overweighted in China, but if this is your strategy then okay.
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@DEW_7240 Thanks for taking the time to review my portfolio, I really appreciate it. Any advice is always welcome.
Regarding the high-TER funds, they’ve actually outperformed the market quite clearly over the years and they’re managed by Spanish fund managers whose philosophy I really like, so I’m comfortable holding them despite the fees.
Out of curiosity, how would you simplify the portfolio? I’d genuinely be interested in hearing your thoughts.
And yes, you’re absolutely right that I’m overweight in China. That’s intentional, as it’s one of my highest-conviction investment theses at the moment.
Regarding the high-TER funds, they’ve actually outperformed the market quite clearly over the years and they’re managed by Spanish fund managers whose philosophy I really like, so I’m comfortable holding them despite the fees.
Out of curiosity, how would you simplify the portfolio? I’d genuinely be interested in hearing your thoughts.
And yes, you’re absolutely right that I’m overweight in China. That’s intentional, as it’s one of my highest-conviction investment theses at the moment.
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@Ricard99 I would consolidate the S&P500 and the active managed funds into an All-world or Developed world ETF.
That's for three reasons:
A) reduce TER
B) reduce rebalancing effort
C) less thinking about country specific over/under exposure compared to MSCI/FTSE
C is only valid unless you want the specific deviation from the FTSE/MSCI country weighting, which your portfolio currently has.
As you said, that you like the active managed funds, you should check if the weighted percentage in your portfolio really makes a difference compared to a MSCI ACW IMI or FTSE All-World.
Two of the funds are around 6% which is okay if they really really perform better in times other ETFs would perform less (reduced draw down).
Anything below 5% (unless specific company shares) does not really create value in a portfolio (this is my personal opinion).
That's for three reasons:
A) reduce TER
B) reduce rebalancing effort
C) less thinking about country specific over/under exposure compared to MSCI/FTSE
C is only valid unless you want the specific deviation from the FTSE/MSCI country weighting, which your portfolio currently has.
As you said, that you like the active managed funds, you should check if the weighted percentage in your portfolio really makes a difference compared to a MSCI ACW IMI or FTSE All-World.
Two of the funds are around 6% which is okay if they really really perform better in times other ETFs would perform less (reduced draw down).
Anything below 5% (unless specific company shares) does not really create value in a portfolio (this is my personal opinion).
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@DEW_7240 Thanks a lot for taking the time to review my portfolio and for the detailed feedback. I’ll definitely keep your suggestions in mind.
I agree that consolidating into an All-World ETF would make the portfolio simpler and more efficient from a TER and rebalancing perspective. However, my goal is to deviate somewhat from the MSCI/FTSE weights, especially through active management and my overweight position in China, which is one of my main investment theses at the moment.
Regarding the smaller positions, that’s a very fair point. I’ll review whether those allocations are large enough to have a meaningful impact or if simplifying the portfolio would make more sense over time.
Thanks again, any additional thoughts or criticism are always welcome.
I agree that consolidating into an All-World ETF would make the portfolio simpler and more efficient from a TER and rebalancing perspective. However, my goal is to deviate somewhat from the MSCI/FTSE weights, especially through active management and my overweight position in China, which is one of my main investment theses at the moment.
Regarding the smaller positions, that’s a very fair point. I’ll review whether those allocations are large enough to have a meaningful impact or if simplifying the portfolio would make more sense over time.
Thanks again, any additional thoughts or criticism are always welcome.
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