Fidelity Global Quality Income ETF Forum

Hello :)

I have a question about what you think makes more sense with ETFs, i.e. now in terms of a savings plan. I want to hold them for the next few years anyway, or decades in the case of the world ETF

I now have the 4 ETFs

$VWRL (+0,46 %) 220€ all world

$FGEQ (+0,37 %) 40 € dividend etf

$GGRP (+0,56 %) 40€ dividend etf

$WGLD (+0,05 %) 40 € Gold

And together that's 340 € a month, but the amount I have available changes every month because I only work in the catering trade and am paid by the hour, not a fixed wage.

1 time a month total sum 340€

2 times a month 170€

4 times a month so weekly 85€

what do you think ?

Good evening,

a colleague of mine would like to start investing, I am more active in the cypto area and therefore I need your help.

He wants to invest €1000 and put it all in an ETF. What do you recommend? I myself own $FGEQ (+0,37 %) but don't know if that would be good for him? They are both 20 and don't want to recommend anything wrong. Thank you!

I had already thought about a 70 core and 30 Satelit portfolio but it's "only" 1000€ because of that.

Part I

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So far, the core of my portfolio has consisted of the MSCI World $HMWO (+0,78 %) 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 (+1,03 %) . 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 (+0,92 %) . A portfolio concept consisting of 60 % US equities + 40 % bonds. Almost like the ARERO 😜 $LU0360863863 (+0,57 %) 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 (+0,79 %) 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 (+0,97 %) 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 (-0,67 %)
$FUSD (+0,75 %)
$FGEQ (+0,37 %)
$GGRP (+0,56 %)

The $FUSD (+0,75 %) with a return of 13.66% p.a. since its launch in March 2017.

E) The iShares Dow Jones Global Titans 50 $EXI2 (+0,71 %) 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 (-0,67 %) and $GGRP (+0,56 %) . 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 (-0,67 %) 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 (+0,37 %)

$FUSD (+0,75 %)

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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 (-0,67 %) (US share only 29%)

$GGRP (+0,56 %) (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?

Since I would like to post an investment decision, but unfortunately this function is not available in the app, I have to do it this way.

Which of these dividend ETFs would you choose and why....

$FGEQ (+0,37 %)

$JEGP (+0,79 %)

$ZPRG (+0,6 %)

hope for some answers thank you very much schonmal💪🏻💸🐵

On and on. 🚀

The enemy of the best is often the good.

I have these ETFs in my portfolio:

$TDIV (-0,67 %)

$GGRP (+0,56 %)

$FUSD (+0,75 %)

$FGEQ (+0,37 %)

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 (+0,75 %) 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 (+0,75 %) 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 (-0,67 %) 40%

$GGRP (+0,56 %) 30%

$FGEQ (+0,37 %) 15%

$FUSD (+0,75 %) 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 (+0,15 %) 3%

$AAPL (+0,65 %) 3%

$VZ (+0,51 %) 2,3%

$CVX (+0,94 %) 2,1%

$ROG (-1,13 %) 2%

$NVDA (-0,03 %) 1,9%

$PFE (-1,75 %) 1,7%

$HSBA (-2,41 %) 1,6%

$IBM (+1,17 %) 1,4%

$AVGO (+1,15 %) 1,4%

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

The trees are putting on their golden-yellow dress, it's getting rainy again and the temperatures are dropping. The golden fall is just around the corner. I take advantage of the cold by only taking cold showers and prepare myself for winter ice bathing. Over the next few days, I'll be swimming in cold water, avoiding hot showers like the plague. Meanwhile, the depot is running. Time for a look back.

I present the following points for the past month of September 2024:

➡️ SHARES

➡️ ETFS

➡️ DISTRIBUTIONS

➡️ CASHBACK

➡️ AFTER-PURCHASES

➡️ P2P CREDITS

➡️ CRYPTO

➡️ WHAT IS REALLY IMPORTANT

➡️ OUTLOOK

➡️ Shares

After the top of the class $AVGO (+1,15 %) has deflated, it is now shifting up a few gears again. The +121% performance of $AVGO (+1,15 %) increased to +178% last month. There is still some way to go to +200%, but perhaps I will soon have the first trebler in my portfolio. That puts me in a good mood! The heavyweight, which also accounts for the largest volume among the individual stocks in my share portfolio, is attracting other heavyweights such as $WMT (+1,81 %) and $NFLX (+0,37 %) behind it. The last few months have also seen $SAP (-0,4 %) steadily risen in my portfolio and has now already reached 4th place, accompanied by $AAPL (+0,65 %) . The former leader $NOVO B (+0,73 %) continues to fall but is still performing well. There are also other stocks that are fighting their way up that I did not expect at the time. For example one $ABBV (+1,03 %) or $BAC (+1,3 %) .

If I look at the performance, I am also spoiled with great results behind the winner. $NFLX (+0,37 %) shines with +98%, $NOVO B (+0,73 %) with +74% and $SAP (-0,4 %) with +72%. When I added the stocks to my portfolio, I would never have imagined that there would be any stocks in my gold box that could double. I'll probably have several of them next year.

And I'm not worried about the basement floor either, as the negative performances are constantly moving towards zero. Step by step. There was also a change in the order at the lower end due to additional purchases. My smallest positions by volume are now $CP (-1,37 %) , $DHL (+0,1 %) and $OR (-2,66 %) in terms of performance they remain $NKE (+0,58 %) , $DHR (+0,53 %) and $CVX (+0,94 %) o.

➡️ ETFs

My beloved core retirement savings unit is growing and growing. The biggest chunk, the $VWRL (+0,46 %) already accounts for 13.4% of my entire securities portfolio. All I can say here is: stubbornly and steadily save a portion of your net salary every month in the boring bread-and-butter ETFs by standing order and savings plans, then you can successfully escape the monster of old-age poverty. In my opinion, everyone should do this. I'm a fan of distributions because they provide a steady additional income. And by saving continuously, this income increases. I also promote this in my private circle. I think it's a shame that so many people respond to my efforts to raise awareness with "Yes, but ...". By constantly hiding behind excuses that are always the same, people are driving themselves into poverty in old age. Even worse are those who think shares (or securities in general) are the devil's plaything and moan about pensions. On the one hand, they don't understand how the pay-as-you-go system really works, and on the other, they completely lack basic financial education. They think they are throwing money into a certain pot from which they can later withdraw. Interestingly, this is only the case with their own portfolio, not with the state pension.

In addition to broadly diversified standard ETFs, I like to put unplanned inflows into dividend ETFs. I want cash flow that will one day cover my living expenses.

➡️ Dividends

I received 33 distributions on 14 payout days in September. I am grateful for this additional income stream.

Unfortunately, I didn't manage to write the extra article I announced in my last post about how I deal with reinvestments last month. This is planned for this month. My plans $UPS (-0,58 %) and $HTGC (+0,27 %) into the savings plans remains in place. I already teased this in the last review.

➡️ Cashback

In September, I received a €40 voucher for scanning my daily purchases, which I used to buy overhead headphones that had been on my watchlist for a while. In line with my cashback procedure, I deducted the equivalent value of the voucher in euros from the corresponding provision and transferred it to the exchange. In this way, I use the benefit of the voucher as productive capital instead of just consuming more like others. My budgets for wear and tear and provisions are thus adhered to and the benefit indirectly finances my asset accumulation.

➡️ Subsequent purchases

Thanks to a small bonus, reimbursements from health insurance and supplementary dental insurance and the aforementioned voucher, I was able to make several additional purchases last month. These include the additional purchase of 2 $UPS (-0,58 %) and 6 $HTGC (+0,27 %) shares as individual additional purchases. I am convinced by both companies. I also invested €27 in the one-off savings plans $SPYD (+0,91 %) , €49 in the $TDIV (-0,67 %) and €44 in the $FGEQ (+0,37 %) invested. Simply to increase the cash flow from the investments. Bit by bit, the tap is being turned on further and further.

➡️ P2P loans

Over a long period of time, I have managed to reduce the amount of defaulted loans on my remaining platforms to a double or single-digit sum. All the rest has been withdrawn. Of course, no progress has been made with interest or redemption payments. I wish the operators would simply write off the rest without replacement so that I could ditch all the platforms. Bondora Go & Grow is an exception to this rule. This is running smoothly, but I'm not putting any new funds into it, I'm just letting it run.

➡️ Crypto

I'm not currently doing anything here. I advise everyone to study the debt cycle and the crypto cycle in order to understand price movements in the long term.

➡️ What is really important

I was on vacation at the end of the month into October, so I spent time with my ex's kids, whose social father I was allowed to be one. First I spent several days with the kids and my ex. I went out in the evenings with the older teenage girl, mainly to give her the attention she was looking for so that she could be the focus of attention herself. In October, we spontaneously went to the capital for a few days at the child's request. This kind of time together with all the experiences helps to strengthen and rebuild the bond, which has of course suffered in recent years, for example due to physical separation. There have been so many great moments over the years, both in the province and in the big city. Enjoying the peace and quiet in the evenings with a great view, listening to what moves her and then the trip to the metropolis with its light and dark sides. And so much more.

Why am I writing this? Because it's moments like these that make life worth living and give us strength in dark times. This is even more valuable than our beloved topics of finance and investment.

➡️ Outlook

The year-end spurt begins very soon. I am hoping for price magic like last year. But the crypto cycle will be even more exciting, as we expect prices to skyrocket at the turn of the year.

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