Dear Community,

Throughout last year, I found myself repeatedly wanting to focus on the European market as well. But the same old arguments kept dissuading me: The European market doesn’t deliver; Europe doesn’t meet my desire for a growth-oriented, high-yield portfolio, etc.

I also asked myself: Which sectors and industries do I want to cover? Where do I see enough potential to justify taking the risk? To what extent do I want to align my portfolio with this strategy?

In today’s episode, Alles auf Aktien: Fiese Gewinnwarnung bei BMW und Europas KI-Unabhängigkeitsaktien , something caught my attention:

A basket from Goldman Sachs, consisting of 64 European stocks, with the wonderful name: EU AI Capex.

Performance over the past five years: 17.5 percent annualized, including dividends.

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And which industries are covered?

• Semiconductors
• Machinery
• Electricity
• Networks
• Cables
• Energy
• Automation

Unfortunately, existing ETFs such as the iShares STOXX Europe 600 Utilities UCITS ETF or the iShares STOXX Europe 600 Technology UCITS ETF do not cover all of these sectors.

"Sounds exactly like what I was looking for," I thought to myself, and used my day off today to create an index tailored to my preferences.

Goldman Sachs has listed 12 of the 64 holdings, including their percentage allocations. The remaining 52 holdings appear to be known only to institutional investors, as the index isn’t publicly available.

So I created my own “Pie” through Trading 212. More specifically, a “Pie” is a personalized investment portfolio in which I can invest in multiple stocks and ETFs according to a percentage allocation I set myself and save toward them simultaneously via a single automated savings plan—with no expense ratio and no order fees.

It would go beyond the scope of this post to write about every individual security, which is why I chose this particular one. I didn’t make these decisions entirely on my own. Gemini helped me with this. In the end, we settled on 37 securities.

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On Selecting the Holdings

Together, we gradually added European market leaders across the entire value chain. We always kept an eye on the sectors—none should be left out.

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On the Percentage Allocation

It’s important to note upfront that the “pie” will be funded with 150 euros per month going forward. Since the minimum investment amount at Trading 212 is one euro, the smallest weighting in the “pie” must be at least 0.7%:

1.00 euro / 0.70% = 142.85 euro

The percentage allocation was then based on pricing power and global scalability.

More details on this may follow in a later post.

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About the Stocks

From EU AI Cortex Basket taken over by Goldman Sachs:

• Infineon ($IFX (+0,51 %)): 7.10%
• ASML ($ASML (+0,97 %)): 6.80%
• Siemens ($SIE (+2,16 %)): 6.00%
• Rolls-Royce ($RR. (-0,48 %)): 5.40%
• Enel ($ENEL (+0,62 %)): 5.40%
• Schneider Electric ($SU (+1,61 %)): 5.40%
• ABB ($ABBN (+0,31 %)): 5.00%
• Iberdrola ($IBE (+0,76 %)): 4.90%
• Siemens Energy ($ENR (+2,57 %)): 4.70%
• ASM International ($ASM (-0,24 %)): 3.70%
• Prysmian ($PRY (-0,35 %)): 3.60%
• BE Semiconductor ($BESI (+0,63 %)): 3.20%

Supplemented by the following stocks:

• VAT Group ($VACN (-0,43 %)): 4.50%
• STMicroelectronics ($STM (-1,06 %)): 2.50%
• Legrand ($LR (-0,56 %)): 2.00%
• RWE ($RWE (+0,94 %)): 1.95%
• Nokia ($NOKIA (+1,95 %)): 1.90%
• E.ON ($EOAN (+0,16 %)): 1.90%
• National Grid ($NG. (-0,89 %)): 1.80%
• SSE plc ($SSE (+0 %)): 1.70%
• EDP Renováveis ($EDPR (+0,53 %)): 1.60%
• Red Eléctrica ($RDEIY (+0 %)): 1.50%
• Nexans ($NEX (+0,23 %)): 1.50%
• Hochtief ($HOT (-0,41 %)): 1.50%
• Enagás ($ENG (-0,39 %)): 1.40%
• United Utilities ($UU. (+1,39 %)): 1.40%
• Spirax-Sarco ($SPX (+2,38 %)): 1.30%
• Centrica ($CNA (+0,57 %)): 1.30%
• Aixtron ($AIXA (+1,27 %)): 1.30%
• Orsted ($ORSTED (+1,47 %)): 1.15%
• Verbund AG ($VER (+0,58 %)): 1.10%
• Soitec ($SOI (+6,84 %)): 1.10%
• Safran ($SAF (+1,56 %)): 1.00%
• Thales ($HO (+0,46 %)): 1.00%
• Geberit ($GEBN (+0,43 %)): 0.90%
• NKT A/S ($NKT (+0,09 %)): 0.80%
• Andritz ($ANDR (-0,86 %)): 0.70%

The figures $IG (-0,22 %) , $SRG (-0,23 %) , $TRN (-0,88 %) , $ALFA (+2,14 %) , $ATCO B (+1,01 %) or $AEMMY can unfortunately only be traded via CFDs on Trading 212. Therefore, these securities could not be included.

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Trading 212 Pie

The Pie now accounts for about 10% of my portfolio, and I’ll be contributing 150 euros to it each month going forward.

I am convinced that Europe will succeed in becoming more independent. However, in my opinion, a self-sufficient Europe without any dependence whatsoever is simply not possible (keyword: globalization).

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Pie Composition

By country:

• Germany: 24.35%
• France: 15.4%
• Netherlands: 13.7%
• United Kingdom: 12.9%
• Switzerland: 10.4%
• Italy: 9%
• Spain: 7.8%
• Denmark: 1.95%
• Austria: 1.8%
• Portugal: 1.6%

By sector:

• Technology: 32.3%
• Industrial & Capital Goods: 31.5%
• Utilities & Energy Infrastructure: 36.2%

By industry:

• Semiconductors & Data Center Chips: 27.8%
• Energy Equipment & Grid Technology: 25.5%
• Electricity Generators: 16.1%
• Physical Networks & Storage: 10.1%
• Cable Infrastructure: 5.9%
• Vacuum Technology & Components: 6.5%
• Network Technology & Connectivity: 1.9%
• Data Centers & Industrial Construction: 3.1%
• Cyber and Perimeter Security: 3.1%

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I’m curious to see how the pie chart will develop.

P.S.: You can find the pie chart on Trading 212 under the name Euro AI Backbone GS to copy.

At the end of the game I liquidated $ENI (+1,66 %) and in these 2 months I made €186 gross from it, almost a 10%, for me it was the first time I "traded" going to take advantage of the news to predict the market trend, I got some things wrong but I understood others, the news is all too unpredictable so if you want to make a short duration buy, better not to be greedy, in the end it's all extra money that you basically didn't plan to get, so it's all gained, in the first Eni trade I told myself to come out with a +10% but when I got to that percentage I wanted more and ended up selling for less (a 5-6% gain).

After the first sale of Eni I had placed in the portfolio $STLAM (-0,09 %) e $NWL (+1,98 %) , after the second trade of Eni I brokered Newlat (which is actually called Newprinces now) which had fallen in the meantime and added $BMPS (+0,11 %) .

For the month of May, on the other hand, my new entry was . $TRN (-0,88 %) , I had been watching it since the beginning of the year and I always put off buying it and ended up watching a continuously rising price, so what to do? Nothing, I made my first entry and if it goes down there is no problem, in fact maybe, you go and buy again, welcome Terna.

What movements did you guys make in May?

Yet also invest strategically around AI, and look for sectors (Telekom/Energy) that do not react as impulsively as AI companies.

Both Dividend stocks, which you don't see much about here, yet last period showed huge growth potential.

$TRN (-0,88 %)

$ORA (-2,44 %)

Good evening ladies and gentlemen, we have reached the end of this year and to end on a high note I decided to add $CMCSA (+0,36 %) to my portfolio, I postponed the purchase of it for a couple of months and apparently I also did well as I got it at a rate of 1.1740/€, and at a slightly lower price than last month, I would say I can consider myself satisfied for its 5% gross dividend.

But now we are already thinking about the next step, I think I want to make an entry on $TRN (-0,88 %) , it is a steadily rising missile, and in order not to miss the train I think I will make an initial entry and then adjust the subsequent entries according to the loading price.

And for you? What is the last trade of the year?

Due to a podcast I decided to place a small position in $TRN (-0,88 %) to place a small position. In terms of price, it's almost in the middle of the year's high and low.

I think that energy, renewable energy and its storage will potentially increase.

Also, growth and dividend growth are quite solid.

OK, the liabilities are quite high. But of course the energy sector also costs investments.

Regards

Carsten

Hi all guys!!!

I would like to share with you my ideal portfolio allocation, as read from the title it is still a work in progress, I am slowly adding positions as opportunities arise.

A little context: I am 24 years old, a final year medical student, and I am slowly putting money aside that I can invest both through my part time job (preparing for the medical test and tutoring for first year exams) and through the savings I already had set aside. The platform I currently use to invest is Directa.

Let's say that my goal at the moment is to reach over the years an invested amount of 50k euros in ETFs and distribution stocks, ideally distributed as follows:

CORE

-30k in growth-oriented developed markets etf (10k/30k)

Those selected are. $FGEQ (+0,24 %) (10k/10k) , $TDIV (-0,21 %) (0k/10k) and $HMWO (+0,36 %) (0k/10k), so as to have income every month, as they distribute alternately;

SATELLITE

-5k in emerging markets etf (0k/5k)

I chose $IEEM (+1 %) to diversify;

-5k in high-distribution etf (2.5k/5k)

In this category I own. $VHYL (+0,4 %) ;

-5k in active option-based etf (5k/5k)

Here I have already completed my position in $JEGP (+0,37 %) , which by the way distributes monthly ;

-5k in single Italian stocks (0k/5k)

In this category I have already selected some of the possible additions, such as. $PST (+0,44 %) , $ISP (-0,27 %) e $TRN (-0,88 %) , but at the moment the prices are too high and I am not willing to buy now;

Considerations and Strategy Explanation: I start by saying that I know that at my age it would be better to buy accumulation instruments for the best taxation and growth over time, but personally the idea of receiving a monthly cash flow (albeit still small) without having to do anything at all has an important psychological impact, and seeing it grow slowly gives me a lot of satisfaction and motivates me to continue on this path. I started immediately by positioning myself on high-dividend etfs such as $JEGP (+0,37 %) e $VHYL (+0,4 %) so that I already had a small boost in the strategy; I hoarded $FGEQ (+0,24 %) during the first week of April by taking advantage of the flash crash that took place, and now I am accumulating liquidity in anticipation of another possible reversal: ideally the next move will be to start accumulating shares of $TDIV (-0,21 %) to diversify in currency as well: last note, the etfs chosen are also from different issuers so as to diversify in this aspect as well.

Let me know what you think!

Dear Community,

Does anyone here know why the share price of the electricity grid operator Elia Group
$ELI (-0,51 %) has fallen so sharply recently? The need for further expansion of the electricity grid is actually undisputed - and the forthcoming further interest rate cuts by the central banks should also be rather favorable for the share. After all, other grid operators have not slumped to such an extent $TRN (-0,88 %)
$NG. (-0,89 %) etc. I look forward to your assessment!