10Mo·

Another stupid question, but perhaps a valid one for a beginner.

Many people swear by one of the ETFs listed below. My largest position so far is the $IWDA (-0,93 %) because it has felt pretty good to me so far.

Now the question: Why not put everything into the $CSNDX (-1,12 %) ?

Obviously there are clear differences in the returns of the various ETFs. Why do some people swear by the "worse" ones in comparison?

And how do I find out which one is best for me?

I just want to build up assets in the long term and thus improve my pension, for example.

Possibly 2-3 more positions for buying a house or just a nest egg.

Thank you in advance! ✌🏼

PS: This is now my third post here and I think the feedback and your help here is just great!

20 Commentaires

wasi@wasi

10Mo

Diversification! ~1400 companies in the $IWDA vs 100 companies in the Nasdaq. World vs USA. Nasdaq also only tech companies... on justetf.com you can compare ETFs

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Woddicks Investment@Woddicks

10Mo

@wasi The US Americans are the center of capitalism and make up a large part of $IWDA, all the other companies in there are just a drag. If the USA sees that there are other companies or countries that are making more profits, then they will take action against them, be it with war or sanctions...

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Banana M.@Banana_Millionaire

10Mo

I just wouldn't feel comfortable investing in just one country and almost just one sector.
You also have much higher volatility due to the often overvalued tech sector.
You have to be able to withstand that.
Also possibly unpleasant at some point in the payout phase. Selling at -20% or even lower in a bear market is certainly no fun.
I think tech and the US will continue to do well for a very long time and probably everyone will be better off with 100% N100 in the end.
I still prefer to stay a little more broadly diversified.

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Krush82@Krush82

10Mo

@Banana_Millionaire With the current composition, however, your MSCI World will easily be -10% if the Nasdaq were at -20%. you are not that much better diversified, in my opinion

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Banana M.@Banana_Millionaire

10Mo

@Krush82 you're not entirely wrong.
Personally, I'm not invested in the World either.
But you shouldn't forget that the World naturally shifts over time.
If tech or the USA performs less, then it will also be weighted less.

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Krush82@Krush82

10Mo

@Banana_Millionaire Yes, that's true, but by the time the rotation is through, you've been through the full "crash". What are you invested in for diversity reasons?

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Stefan21@stefan_21

10Mo

All In Nasdaq 100 means All In American technology companies. This gives you both a geographical cluster risk and a sectoral cluster risk :)

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Horrax D@Horrax

10Mo

Which MSCI World ETF did you compare here in the benchmark comparison with the core MSCI World from iShares? Looks to me like you compared a distributing ETF with an accumulating one, which you should generally avoid.

To your actual question:
"Past performance is not an indicator of future performance"
The Nasdaq Index mainly contains technology stocks, which have significantly outperformed the broad market over the past 20 years.
If you think this will also be the case in the future, there is nothing to be said in favor of this ETF.
In general, however, you must also be aware that in a serious crash, the stocks that have risen the most beforehand will also tend to crash.
In the dotcom bubble this was around -80% and the index took 15 years to recover.
If you had entered in 2000 and exited in 2015, you would have gotten around 0% return per year. Adjusted for inflation, that's still a big loss.

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Erzwo@FYBSTRD

10Mo

I would prefer the Nasdaq, precisely because of the performance. The World ETF also generally consists of approx. 60% + x% US companies. The argument "too US-heavy" cannot be accepted as all companies are represented globally and the turnover is made up accordingly

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Wachstums_Aktionär@schokosahne

10Mo

The Nasdaq 100 Index contains the shares of the 100 largest domestic and foreign non-financial companies listed on the Nasdaq Stock Market. It is regarded as a benchmark for technology shares in the USA.

In the end, you have to look at where you see the future accordingly

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Tino@parlania

10Mo

All in in leveraged nasdaq ✌️

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federalreserve@federalreserve

10Mo

@parlania No Risk no Fun 🥴

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Nico@_Harry_

10Mo

@parlania with normal vola

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Vincent Mustermann@Freiheit

10Mo

I have been combining both for years and have done well with it. Invest in such a way that you can withstand crises well, are convinced of your companies and have a long investment horizon.

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six@six

10Mo

Counter question: Why not put everything into $NVDA? It went much better again.

Answer: Diversification!

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Tenbagger2024@Tenbagger2024

10Mo

I think the NASDAQ will continue to be an out performer for years to come.
Maybe choose this ETF and add solid individual stocks from other sectors such as industrials, healthcare, financials and consumer.

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Smudo@Smudeo

10Mo

Just take all 3 in the savings plan, then you are flexible, if one performs better or worse you can switch again. It's like hopping fixed-term deposits, 0.5% is only 500 euros a year. Is it worth it?

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Luffy@Luffy3D2Y

10Mo

Let me put it the other way around. The Nasdaq 100 may continue to outperform the MSCI World or FTSE by a long way for the next 10 or 20 years, but many people need a sense of security.

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Metis@Metis

10Mo

What can make a lot of profit can (temporarily) also go down just as massively. :D You just have to bear this in mind, because none of us can look into the future to see whether things will continue like this for 10, 20 or 30 years.

Risk vs. return. You don't get a high return with a high degree of security or a low risk.

With the usual global ETFs, you first take the global market and its returns with a slightly different positioning/weighting.

With other ETFs, you deliberately focus on sectors and certain countries/regions that you must be convinced will continue to perform strongly in the future.

There's a great example with the Japanese Nikkei ETF, the exact name of which I can't think of right now.

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ImpressiveCard@growth_ninja_kixmn

10Mo

The Nasdaq ETF conveniently "hides" 2000-2015

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