5Mo
You want to build up long-term assets, but only have one of four ETFs "primarily for asset accumulation"? Then why the others?
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@Epi true, they all serve to build up assets, of course
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@Epi Maybe it's a cargo bike?😂
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•@Epi as they say, it has grown historically. That's why I need a bit of a 3rd opinion ^^
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•@Epi that's why we optimize.
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@Epi May I ask how you would do it?
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5Mo
@TwoEyed Sure, you can ask. 😉
I don't know if I can give you an answer you'll like.
Just this much: ACWI has a long-term return of approx. 7%pa with 60% max drawdown. That's less return and more risk than an MSCI World or an S&P500. The reasons are systematic (inefficient EM state-owned companies).
You double the problem of the ACWI with your MK-weighted EM ETF.
Sector ETFs almost always underperform the benchmark index in the long term because they are highly cyclical. Without an active strategy, this will not work.
Dividend ETFs only bring disadvantages in the savings phase. The dividends systematically do not compensate for the underperformance.
A positive recommendation is difficult because you have given too little information about yourself. My blanket recommendation for passive savings plan investors with a >20-year horizon and increased risk tolerance has not appealed to anyone so far:
50% MSCIWorld, 25% gold, 25% BTC.
Personally, I prefer to invest actively via GTAA. This means I also diversify the asset classes over time. This makes me independent of stock market phases. However, this does not correspond to the current mainstream.
I don't know if I can give you an answer you'll like.
Just this much: ACWI has a long-term return of approx. 7%pa with 60% max drawdown. That's less return and more risk than an MSCI World or an S&P500. The reasons are systematic (inefficient EM state-owned companies).
You double the problem of the ACWI with your MK-weighted EM ETF.
Sector ETFs almost always underperform the benchmark index in the long term because they are highly cyclical. Without an active strategy, this will not work.
Dividend ETFs only bring disadvantages in the savings phase. The dividends systematically do not compensate for the underperformance.
A positive recommendation is difficult because you have given too little information about yourself. My blanket recommendation for passive savings plan investors with a >20-year horizon and increased risk tolerance has not appealed to anyone so far:
50% MSCIWorld, 25% gold, 25% BTC.
Personally, I prefer to invest actively via GTAA. This means I also diversify the asset classes over time. This makes me independent of stock market phases. However, this does not correspond to the current mainstream.
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•@Epi I like every (constructive) answer 😉
The EM weighting is a thorn in my side. I had the $XDWT as my MSCI World for a long time. It did deliver a solid 500% return, but 99% tech stocks are definitely high-risk. That's why I added the ACWI at some point to get a bit more exposure to other sectors
With the dividend ETF, I now also tend to stop investing for the time being.
I feel 50% MSCI World + 25% gold, I'm no longer interested in BTC or crypto in general, so a lower weighting would make sense for me
GTAA is nothing for me personally. There are always phases where I am inactive. I don't think it will work out.
But thanks for the opinion. Very cool to hear something new 💪🏼
The EM weighting is a thorn in my side. I had the $XDWT as my MSCI World for a long time. It did deliver a solid 500% return, but 99% tech stocks are definitely high-risk. That's why I added the ACWI at some point to get a bit more exposure to other sectors
With the dividend ETF, I now also tend to stop investing for the time being.
I feel 50% MSCI World + 25% gold, I'm no longer interested in BTC or crypto in general, so a lower weighting would make sense for me
GTAA is nothing for me personally. There are always phases where I am inactive. I don't think it will work out.
But thanks for the opinion. Very cool to hear something new 💪🏼
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