VanEck Ms Developed Markets Div Lead ETF

I'm afraid I might make the wrong decision.

It's about Tesla

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A look into the past:

Tesla shares reached their all-time high on November 1, 2021 at around $414.

The share price then reached a low in mid-2022. However, 2022 was also the raccoon year on the stock market, which led to a general market weakness in the technology sector as well as interest rate hikes.

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What has happened in my portfolio in recent weeks:

My Tesla position has grown unexpectedly quickly and significantly. I am now considering selling a third of the position and shifting the proceeds into my ETFs:

$TDIV (+0,59 %)

$FUSD (+0,76 %)

$GGRP (+0,8 %)

Then my ETFs would be the largest positions in my portfolio again, as I wanted. However, restoring the desired allocation does not require a sale and I am in no hurry.

But I have no idea where the journey with $TSLA (+0,05 %) is going to go. For example, whether we will actually see something in the direction of $600, whether profit-taking will drive the price down again, whether we are just building up the double top anyway🤪

I'm afraid I might make the wrong decision. 😨

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How can I evaluate and act wisely and sensibly in this situation?

Good evening everyone,

I noticed by chance today that my savings plan execution with Scalable for $TDIV (+0,59 %) was postponed from 19.11 to 19.12. A change was not possible, only the deletion. Now it is the case that you cannot currently create a new savings plan for this ETF at Scalable and you cannot buy it either. The answer from support is:

Thank you for your call.

I would like to help you with your request.

The class you have named with ISIN: NL0011683594

is shown as restrictedly tradable on the basis of the data supplied to us by the data service provider.

We are in contact with the service provider to see whether this restriction can be lifted. We ask for your understanding that no binding timeframe can be given for this, as many individual aspects have to be taken into account in this process.

Please check the tradability again at a later date.

We wish you a pleasant weekend.

Please do not hesitate to contact us if you have any questions.

Yours sincerely

Today I would like to shed some light on the special tax situation of the $TDIV (+0,59 %) which result from the fact that it is a Dutch ETF.

One particularly interesting aspect becomes apparent if you have already exhausted your tax-free allowance, as the tax burden is reduced in this case due to the special structure of the ETF.

The ETF deducts a (Dutch) withholding tax of 15% on dividend payments, which may seem disadvantageous at first glance. However, this is precisely where it has a tax advantage: by offsetting this withholding tax against the domestic tax burden and the partial exemption, the effective tax burden is significantly reduced. As a result, investors have to pay less of their distributions than would be the case with comparable ETFs without withholding tax.

Helmut Jonen once wrote more specific figures on this in his story:

"As a result, the tax burden on dividend distributions is not only reduced to 18.46% due to the 30% partial exemption, but even to just 17.63%. This would bring the partial exemption down to 33.15%."

Hello everyone, my monthly savings installment currently flows equally into the following two ETFs:

$XDWD (+1 %)

$TDIV (+0,59 %)

What do you think of the ETF split? Would you include another one (e.g. on the S&P500, or India, etc.) and split the savings installment or leave everything as it is? Please give reasons;)

I am planning to invest an amount in the mid five-figure range in $TDIV (+0,59 %) to invest.

The yield (distributing) is approx. 4% p.a.

Does the ETF make reliable distributions? Does the ETF's distribution depend solely on the dividend performance of the companies it contains?

what risks, apart from lower price gains than with accumulating ETFs, do you see with this one?

Thank you

You're always smarter afterwards.

Time is a bitch

How can you before the election?

⏬

Yes, it can go further down

Nobody knows

Part I

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So far, the core of my portfolio has consisted of the MSCI World $HMWO (+0,97 %) 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 (+1,06 %) . 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 (+0,8 %) . A portfolio concept consisting of 60 % US equities + 40 % bonds. Almost like the ARERO 😜 $LU0360863863 (+1,02 %) 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 (+0,95 %) 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 (+1,03 %) 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 (+0,59 %)
$FUSD (+0,76 %)
$FGEQ (+0,47 %)
$GGRP (+0,8 %)

The $FUSD (+0,76 %) 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 (+0,59 %) and $GGRP (+0,8 %) . 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 (+0,59 %) 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

I would like to liquidate one of these two ETFs:

$FGEQ (+0,47 %)

$FUSD (+0,76 %)

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They overlap too much. The top positions are the same. The risk figures and ratios are therefore very similar.

I know this community loves the global ETF and doesn't like the US overweight, but there are some arguments in favor of the US Quality Income in my opinion: yield and cost.

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The global Quality Income has generated a total return of 124% since inception in March 2017, while the US Quality has generated 162% over the same period.

The TER & TD are already included in this data. (In any case, the US Quality Income not only has the lower TER of 0.25%, but also the positive tracking difference of -0.14%. While the global ETF has a TR of 0.4% and costs another +0.1% in TD).

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In Europe, the MSCI World is considered a solid basic investment. I assume this is also the reason why the Fidelity Global Quality Income is the more popular one here.

In other parts of the world, however, the S&P500 is the underlying investment, which would also explain why US Quality Income has the larger fund size.

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For the sake of completeness, I would like to mention that I also have these two ETFs:

$TDIV (+0,59 %) (US share only 29%)

$GGRP (+0,8 %) (US share,63 %)

If you look at the overall picture, you could say that these two ETFs give me country diversification and that I should take the better and cheaper of the ETFs mentioned above?

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Long story short. Which one should I throw out? And why?

The enemy of the best is often the good.

I have these ETFs in my portfolio:

$TDIV (+0,59 %)

$GGRP (+0,8 %)

$FUSD (+0,76 %)

$FGEQ (+0,47 %)

Some, if not all, have outperformed the MSCI World at times.

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At the moment they are all about the same weighting and should be increased further. While I am trying to implement a growth strategy with equities, these ETFs are intended to generate passive income.

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Objectively speaking, I would have to sell the $FUSD (+0,76 %) as it further increases the US share and overlaps heavily with at least two of the other ETFs. In other words, it reduces diversification in all respects.

But on the other hand $FUSD (+0,76 %) also the one with the best past return and will probably remain so in the future.

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One approach could be to take the US weighting and overlaps into account in the ETF weighting of the portfolio and implement it as follows, for example:

$TDIV (+0,59 %) 40%

$GGRP (+0,8 %) 30%

$FGEQ (+0,47 %) 15%

$FUSD (+0,76 %) 15%

If the ETFs were weighted in this way, the following allocations would result:

Countries/Regions:

USA 56.4%

Canada 4.4%

Europe 33.2%

Asia 5.4%

Top 10 weighting:

$MSFT (+0,08 %) 3%

$AAPL (+0,52 %) 3%

$VZ (+1,42 %) 2,3%

$CVX (+0,88 %) 2,1%

$ROG (+0,88 %) 2%

$NVDA (+1,51 %) 1,9%

$PFE (+1,18 %) 1,7%

$HSBA (+0,37 %) 1,6%

$IBM (+4,22 %) 1,4%

$AVGO (+1,3 %) 1,4%

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What do you think of this allocation example? Do you have any suggestions for improvement or comments?