iShares Dow Jones Global Titans 50

Part I

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So far, the core of my portfolio has consisted of the MSCI World $HMWO (+0,26 %) and has brought me around 26% price gains and a few distributions. However, comparisons and back tests have shown that the MSCI World is not the best choice for the portfolio.

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The satellites consisted mainly of shares in well-known, large and often safe companies. I have gradually changed this over the last few weeks and you could say that the portfolio is changing in the direction of growth stocks with significantly higher risk and return potential. Whether and how successful I will be here is not too important in principle, as I still have a solid core, but it is precisely this core that is in the dock today.

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After spending the last few weeks looking at my portfolio and getting a lot of positive input, information and tips here on Getquin.

I have found the following ETFs that could perhaps form a better core for my portfolio.

A) The best known first, the S&P 500 $IUSA (+0,29 %) . If I were to start investing again today and did not know the following ETFs, I would opt for this one instead of the MSCI World.

B) The ETF mentioned by @Epi mentioned ETF, $WTEF (+0,41 %) . A portfolio concept consisting of 60 % US equities + 40 % bonds. Almost like the ARERO 😜 $LU0360863863 (-0,78 %) only much better. Because the performance so far has been very close to that of the S&P500. And I think that in turbulent stock market years, bonds will provide stability and returns. However, the fund is only one year old and so there is still little data available.

C) Then we have my favorites so far, 2 actively managed ETFs from JP Morgan.

One is the global variant $JRDG (+0,21 %) including emerging markets. Here, undervalued companies are overweighted according to fundamental data. Since its launch in September 2021, this fund has returned 11.88% p.a.

And then the counterpart to the S&P500 $JRUD (+0,26 %) the aim of this ETF is to outperform the S&P500 and to this end it also includes US equities that are not included in the index.

Since launch, December 2019, 16.5% p.a. has been achieved.

D) Then we have four dividend growth stocks. These have also beaten the MSCI World at times: $TDIV (+0,29 %)
$FUSD (+0,25 %)
$FGEQ (+0,06 %)
$GGRP (-0,09 %)

The $FUSD (+0,25 %) with a return of 13.66% p.a. since its launch in March 2017.

E) The iShares Dow Jones Global Titans 50 $EXI2 (-0,31 %) which has outperformed the S&P500 for many years and has realized 17.38% p.a. over the last 5 years, for example.

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I did some back testing to see how you could build a portfolio with these ETFs. However, most ETFs have not been around long enough to provide meaningful data. I also find the backtest very tedious as no perfect allocation is calculated or suggested, instead I have to work my way forward percentage by percentage. In short, I was not successful in backtesting.

I used these websites for the tests and comparison:

https://www.portfoliovisualizer.com/backtest-portfolio#analysisResults

https://curvo.eu/

https://extraetf.com/de/etf-comparison?products=IE0031442068-etf,IE000KF370H3-etf,IE000HFXP0D2-etf,IE00BJ06C044-etf,NL0011683594-etf,IE00BYXVGX24-etf,IE00BYXVGZ48-etf,IE00BZ56RN96-etf,DE0006289382-etf

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I would prefer to take them all and only buy the ones that are doing badly at the moment. But that wouldn't work because these ETFs overlap a lot and the correlation is therefore very high. ☹️

Perhaps the most dispensable would be the "dividend ETFs", $TDIV (+0,29 %) and $GGRP (-0,09 %) . These have some of the highest fees and the weakest performance. However, these are precisely the ETFs that overlap the least with the others. $TDIV (+0,29 %) could pass as Europe (55%) share of the portfolio. If you want to take Europe into account. It would be interesting for me if one region is doing well and the other is doing badly, because I could then make counter-cyclical purchases.

If overlaps and correlations are very high and costs are similar. Then it wouldn't matter whether I have them all in small chunks or large shares of one or a few ETFs. The difference should then be marginal. 😅

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Should I really only choose one or a few? What am I missing out on? How do you find the right one(s)? Has anyone built a portfolio from these ETFs? How do you make the right decision?

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Part II

https://app.getquin.com/de/activity/HQueJcsExE

$EXI2 (-0,31 %) is cluster risk in the broadest sense. We have done well with this in recent months / years.

What is the attitude?

Move some of the profits (possibly after the recovery in late fall) into an equally weighted S&P ETF? Or take a dividend ETF? Or do you believe that the AI wave will continue to drive share prices and remain invested?

What do you think of the $EXI2 (-0,31 %) vs. $VWRL (+0,18 %) ??

I personally think the Global Titans 50 is really good.

Which one would you choose?

Like many others, here I have been a whole time in search of a strategy. I think that I have now found a very good way for me, which must now be followed.

The center will be two ETFs:

One is the $IWDA (+0,23 %) and on the other hand the $EXI2 (-0,31 %)

The first one is well known and should not be the topic today, only this much about it: I see more risks than opportunities for me with the EM and therefore consciously do without them, therefore no All country or similar.

The second ETF $EXI2 (-0,31 %) is for me an excellent alternative to single stocks to put a focus on blue chips in my portfolio.

Since it is not one of the well-known indices/ETFs, I would like to explain it briefly.

Eligibility criteria and index construction of the

Dow Jones Global Titans 50 translated from the Dow Jones Titans Indices Methodology

Index Universe:

The index universe is defined as all stocks in the S&P Global BMI.

Selection Universe:

1. stocks from the index universe defined above that have not traded for more than 10 days in the last quarter are excluded. From the remaining universe, the top 100 companies ranked by market capitalization form the selection universe. Whether a company with multiple share classes is eligible for the index depends on the sum of the market capitalization of the eligible classes of the company.

2. companies must derive at least 30% of their revenues from foreign markets to be eligible for inclusion in the index. Companies currently included in the index are still eligible if they generate at least 20% of their revenues from foreign markets. Selection of companies for the index

1. the companies in the selection universe are ranked according to the following criteria:

- Market capitalization - Sales - Net income

2. a final rank is calculated for each company by weighting the market capitalization rank by 60%, the sales rank by 20% and the net income rank by 20%.

3. 50 companies with the highest final rank are selected and form the index, subject to the following buffers:

- Any company in the top 30 of the final ranking that is not yet included in the Index will replace the lowest ranking company in the Index included to date.

- Any company included in the index that is not in the top 70 in the final ranking is replaced by the highest ranked company not included.

- In the event of a tie in the final ranking, the company with the larger market capitalization is ranked higher.

Weighting

At each rebalancing, the index is weighted by market capitalization, with a cap of 8% for companies. The weighting is reviewed on a quarterly basis.

So much for the composition and functioning of the ETF.

My reasons for making the index the largest item in my portfolio:

• There are always at least 50 blue chip companies in the ETF, sometimes more.
• I would also be willing to put the individual shares of all the companies included in the portfolio.
• Since it is a stock ETF, where 30% of the income is tax-free (keyword partial exemption), any income (capital gains on sale, dividends) must be taxed at 18.4625% (church tax neglected). A big advantage compared to individual shares.
• Quarterly automatic rebalancing, no work for me.
• Every year in September the composition is reviewed and adjusted.
• If a company no longer meets the requirements, it is removed from the index during the quarterly rebalancing and replaced the following September.
• Rebalancing is done by market capitalization, but is capped at 8% per individual security.
• The $EXI2 (-0,31 %) performs better over the long term than the $IWDA (+0,23 %) at least when looking at a holding period of 10 years or more. The target is a holding period of at least 30 years.

Of course, there are also disadvantages:

• The index is extremely US-heavy
• The index is tech-heavy
• 50 companies is not diversification, so I use the ETF to intentionally overweight the companies for me.
• 0.51% TER is not exactly low for an ETF.
• If one of the really big companies (Apple, for example) crashes over a long period of time, it can drag the index down quite a bit until it gets kicked out.
• A successful past is no guarantee for a successful future.

In the medium term, I will reorganize my portfolio in such a way that I will shift almost all individual stocks to the $IWDA (+0,23 %) shift. Individual stocks from which I expect an above-average return may remain and, if necessary, will be expanded or newly included. The prerequisite is that they are not included in the $EXI2 (-0,31 %) contained in the portfolio. Maybe one or the other sector ETF will be added.

The goal is to get a more manageable portfolio, where the majority is in the $IWDA (+0,23 %) is in the portfolio. The $EXI2 (-0,31 %) should provide a bit of outperformance and with one or the other individual stock and some cryptos you can then try to maximize the return, not to say: a little fun must be .

I would be interested in your opinion overall on the new strategy and in particular how you see the $EXI2 (-0,31 %) see as an alternative to umpteen individual stocks?

Screenshot: https://de.extraetf.com/etf-comparison?etf=IE00B4L5Y983,DE0006289382

Hello,

I invest since about November 2022 and try to build up my portfolio little by little. My strategy so far consists of buy & hold and my goal is to eventually cover my monthly fixed costs to be able to put my salary (apprentice) fully on leisure and other investments.

I am 20 years old and my salary is still somewhat limited due to my education, I am currently saving monthly these two etf savings plans

$IWDA (+0,23 %)
$EXI2 (-0,31 %)
In addition, I buy now and then a few individual shares to expand my dividend portfolio.

I would be very happy about feedback, but of course I am also open to criticism or suggestions for improvement.

Mfg Felix

Hey :D

What do you think about the ETF. In the ETF are the 50 largest companies from the industrialized countries included. The ETF has made in the last 10 years on average per year 12% return and is safe in my opinion because of the many blue chips.

I wish you a nice Sunday 😁

Savings plan