SPDR MSCI ACWI IMI ETF Forum

Hello everyone.

Person: I am in my mid-21s and have been on the stock market since April 2024. Earn 2.3k net (accountant with further training next year to become a business administrator)

+ 520 euros part-time job in the stable and on the tractor with my aunt since I was 14 and still live at home.

History:

I was already at Scalable in 2022, burned 100 euros in penny stocks and put 50 euros in Bitcoin, but took it out again straight away at around 20k. After that, the stock market was quiet again until April 24 (if you had been more interested back then...many people probably think so).

Well... nevertheless, I was fired up for the stock market and went full throttle straight away. Since I had done a lot of "crap" with my money before (car for 25k + 5k burned at tipico with the money I earned during my training and on the side), this was a turning point where I wanted to be more frugal.

I invested the rest of the money accordingly.

Investing:

In the beginning, I was so extremely curious that I read all the media I could get my hands on. In addition, I sometimes asked questions 20 times, which is why many people were annoyed with me. I'm sorry about that. It was curiosity and the desire to invest well that drove me.

As I found the dividend strategy interesting, I sometimes had savings plans for 30 shares with 10-20 euros (I felt I always wanted a new one that I found exciting and rediscovered).

At some point it became too much for me and the amounts were too small, so I sold them all.... except for Nvidia. I stuck with the $SPYI (+0,51 %) ACWI IMI and the $CSNDX (+0,78 %) as I am convinced of the future returns. However, as this would be "too boring" for me, I have decided to add a handful of shares in the long term when a very good opportunity arises. So after a long time it was $ASML (-0,38 %) that has prevailed. With the hope of achieving good long-term returns after a major correction.

$BTC (+0,83 %) was a topic that I kept my hands off for ages because I never understood it...I still haven't got that 100% now, but I see it as a good alternative and I'm behind it.

The $CSPX (+1,03 %) S&P 500 is saved to have equity for a house in 10 years. That's why I look at it separately.

The weighting of equities, ETFs and cryptos is currently as I had planned.

I invest €500 a month in the S&P 500

800€ in the ACWI IMI

In the NASDAQ 100 100€

In Bitcoin 100€

I also save 50 euros separately with TR in the $IWDA (+0,72 %) for my parents' pension in 10 years to give something back as a thank you and €100 in the $VWRL (+0,46 %) which is intended for the pension. (Another €220 goes into Rürup and the insurance company's private pension plan).

I also currently have Nvidia there with €2900, which will soon be liquidated and deposited at TR with interest as a nest egg.

Any money that is left over will either be divided up or used to buy something.

I've already reached my annual target of €15,000, which makes me pretty happy. The next step is €35,000 by the end of 2025.

The deposit with Scalable + Bitcoin is intended to last forever, in case I can manage without touching it with my family, children, house, etc.

Thank you very much!

At what point is my portfolio diversified? - Are 30 shares enough?

The question was asked recently:

"How many stocks do you think a diversified portfolio should have? I look forward to your opinion on this"

And as is customary on the Internet, a lot of opinions and half-knowledge were bandied about.

The answers vary between:

"only $BTC (+0,83 %) " and "30-50"

If you look in other forums, numbers around 30 appear again and again.

But how do you arrive at this figure?

The 30 is derived from the central limit theorem.

https://en.wikipedia.org/wiki/Central_limit_theorem

However, this does not apply to us as investors. This is because it only applies under the assumption that the sample is randomly selected.

This then only applies to the respective sub-segment of the stock market. So you would have to buy 30 random US large caps and then repeat this for:

• US MidCaps
• US SmallCaps
• International LargeCaps
• International MidCaps
• International SmallCaps
• Emerging Markets

So if we want to have a diversified portfolio of randomly selected stocks with the ACWI IMI as a benchmark, we need more than 200 stocks. $SPYI (+0,51 %) as a benchmark, then we need more than 200 stocks.

With the MSCI World $IWDA (+0,72 %) it would be about 120 stocks,

This has little or nothing to do with reality, as investors do not pick their stocks at random. Selection bias is introduced into the system through the investor's likes and dislikes. To compensate for this, we therefore need far more values than in the previous example.

There is a nice article about this on Investopedia:

https://www.investopedia.com/articles/stocks/11/illusion-of-diversification.asp

Your Manager Risk Can't Be Diversified Away with Stock Picking.

One of the main reasons for this is that since 1926 only 4% of all stocks in the S&P500 have been responsible for 100% of the winners. Manager risk is therefore defined by not being able to identify these winners early enough, or not being given enough weight.

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2900447

The answer to the question:

"How many stocks do you think a diversified portfolio should have?"

Is... *drum roll - ddddddrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr.........*

Not at all!

And if at all, then only with a huge portfolio of around 1000 stocks that is so close to the market that you might as well leave it alone. Which is logical, otherwise actively managed funds wouldn't perform so badly.

*disappointed groan*

Since >95% of all fund managers (and investors) underperform their benchmark over 20 years, it may be a good idea not to take this risk.

But what if I want to take active manager risk and do stock picking?

My tip:

90% in a broad world ETF

And the remaining 10% in a STRONGLY concentrated portfolio of 10 stocks or less.

Only high-conviction stocks.

The logic behind this is very simple, if your top 10 don't outperform the market, your top 20 won't either.

Note:

If you disagree, feel free to say so. However, the word "diversification" can mean different things to different people.

I have assumed here that you want to remove (diversify) the non-systematic risks.

For example, Political and Legal Risk, Entrepreneurial Risks, Manager Risk, Model Risk...

If the word has a different meaning for you, you will come to different conclusions.

@Epi here we go😉

Brief introduction: I was very undecided about my strategy for a relatively long time and have rethought it back and forth several times and have now finally set up my portfolio (in its current form only this year) with a strategy that lets me sleep peacefully and that I hope will lead to a successful future stock market life. My strategy is also designed so that I have to worry as little as possible about rebalancing and actively do not have to worry about it. The aim of the portfolio is long-term wealth accumulation (10 years+).

About me: 34 years old, married, now 2 children, live in rented accommodation, work in middle management at a private bank in Hamburg, savings rate €1,000 per month, sufficient nest egg available and not tracked here

Strategy: I recently made a final decision in favor of an ETF as the core of my portfolio. The choice fell on the $SPYI (+0,51 %) as it tracks large, mid and small caps from industrialized and emerging markets. The ETF should make up 60% of my portfolio in the target allocation. I invest €600 a month in the ETF from my savings installment.

In addition to the ETF, I hold and save monthly $BTC (+0,83 %) (physical and ETP $WBIT (+0,99 %)) and $WGLD (+0,05 %) (also gold physically $965515 (-0,82 %) ) with €200 each. The target allocation for both BTC and gold is 20% each.

I have opted for $WGLD (+0,05 %) because $EWG2 (-1,37 %) is unfortunately not eligible for a savings plan at ING and $WGLD (+0,05 %) is also tax-free after 1 year and has a delivery option. My position in physical gold will not be expanded any further.

$WBIT (+0,99 %) I deliberately chose this savings plan because it is NOT tax-free after one year (optimization of the tax-free allowance through sales, is not saved, my savings plan only runs on real gold). $BTC (+0,83 %) ).

All in all, I hope that the portfolio allocation will optimize returns while at the same time minimizing drawdowns.

Feel free to leave thoughts, suggestions, criticism or praise at da✌🏻.

Greetings, Marcus

I have just seen that the$SPYI (+0,51 %) is now also available as a distributing variant. I'm now considering switching my Core from $VWRL (+0,46 %) to the $SPSA (+0,69 %) to switch. What is your opinion on this?

SPDR MSCI ACWI IMI ETF already for 0.17 percent p.a. - good basic investment :-)

$SPYI (+0,51 %)

$CSPX (+1,03 %)
$IWDA (+0,72 %)
$VWCE (+0,48 %)
$SPYI (+0,51 %)

Why do so many people want to include stocks in their portfolio when only 11% beat the market in the long term?

🧽

8% luck

3% can

What makes you pick up shares, is it the dividend? Do you like a share/company or do you hope to outperform?

https://geldfakten.com/aktiv-investieren-und-den-markt-schlagen/#:~:text=Nach%252020%2520Jahren%2520sind%2520es,8%2525%2520eher%2520%E2%80%9EGl%C3%BCck%E2%80%9C.

Subsequent purchase ETF

I have just decided to withdraw part of my call money (50k remaining) and buy my ETF.

The price has reached my entry price again. As September could possibly still be volatile, I'm leaving some of my money in my call money

$SPYI (+0,51 %)

Hello everyone,

Does it make sense to diversify the Spider ACWI IMI and add another ETF or is the weighting already sufficient to invest risk-free?

$SPYI (+0,51 %) or $IWDA (+0,72 %) All in ETF