1J·

Feedback for a beginner

Hello, GQ community!

I'm 50 years old and I'm very new to this interesting world of investments.

I believe it's never too late to learn something and start a new journey.

I plan to travel for about 15 years 🤞🏼🙂

I watched a lot of YouTube videos before deciding to switch to ETFs from simple deposit accounts. Actually I don't have knowledge yet to invest in individual stocks, so I'll go all-in on a few ETFs, trying to diversify a little bit. They say is good not to be entirely exposed to the US market, even though it should be every portfolio's core.

I started with a 5k allocation and I chose $IWDA (-0,04 %) as my core, $SMEA (-0,13 %) for the European market and $AASI (-0,74 %) for a share of emerging markets ( 👉🏼 I wanted them to be Asian only, but then I realized $AASI (-0,74 %) overweight US 🙄 Why its name is so deceiving?)

In short guys, by next week I plan to allocate another 20k to boost my portfolio and then saving every month.

I'd make $IWDA (-0,04 %) at least 50% of my position, I'm considering the purchase of some $EIMI (-0,62 %) shares (more focused on EM) and maybe soon a crypto ETN/ETC (I still have to understand which is the best offered solution from my broker).

I wouldn't exceed 10% for $WGLD (+0,18 %) and 5% for the crypto.

- Do you have any tips?

- Do I already have overlaps?

- Does make sense to save on some $IS3R (-0,03 %) shares just to get a tiny boost to my returns?

- Which would be the ideal % for every allocation?

[👉🏼 If I get a negative feedback about $IS3R (-0,03 %) and $AASI (-0,74 %) I won't sell them, but just let run as it is]

Thanks in advance for any precious opinion!

1 Commentaire

2Min

At first: Welcome to the community ✌🏻
You always have to look what kind of replication your ETF does. It can be physical (the etf buys real stocks) or synthetic (the ETF does Swaps). Your EM ETF has a synthetic replication. That’s why getquin shows you different stocks, then the ones that are really part of the ETF. So don’t worry, your EM ETF does not invest into US stocks. You can choose a different EM ETF with physical replication to see the real allocation.

I have some questions for you, so i can give you some advise:
What is your main goal with your portfolio? Do you want to build wealth or a passive income?
Why do you invest in gold? The return not exceedingly high but some people want it as a security. But those buy physical gold.
Are you familiar with the distribution of Bitcoins and how so called whales effect the BTC price?

My answers to your questions:
Yes you have some overlap between the MSCI World and the Europe ETF but this is totally fine because your aim here probably isn’t mainly a greater diversification but a higher weight on european stocks and thereby less weight on US stocks.
In my opinion the Momentum ETF is not a good choice. It invests into stocks that had a high performance in the past but that doesn’t guarantee future returns.
The ideal allocation depends on your opinion on what’s the best ratio of risk and return.

Maybe create some test portfolios here on getquin with different allocations and look at the region and sector allocation. This way, you can adjust it and compare until you find your personal ideal allocation.

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