It's more expensive than an All World ETF but offers the same performance—what made you choose this particular ETF?
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@Fred999 perhaps the stock weightings in this ETF
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@Fred999 What does “same performance” mean? Over 1 day, 1 week, 1 month, 1 year, 3 years, 5 years?
The GERD is designed for a holding period of at least 5–10 years, and will ultimately outperform every All-Word fund. Because it incorporates the latest findings from financial research.
Even though that hasn’t worked out over the past 2 years:
The AI bubble will burst, and with it, the current outperformance of all All-Word ETFs...
The GERD is designed for a holding period of at least 5–10 years, and will ultimately outperform every All-Word fund. Because it incorporates the latest findings from financial research.
Even though that hasn’t worked out over the past 2 years:
The AI bubble will burst, and with it, the current outperformance of all All-Word ETFs...
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•@Jojo585 ....und vor allem serielles Factor-Investing !
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•@Gainzilla But that's not all—there are many more benefits you'll enjoy:
https://gerd-kommer.de/etf/vergleich/
https://gerd-kommer.de/etf/vergleich/
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22H
@AlexBloch If the marketing department says so, then it must be true. 🤷♂️
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•@AlexBloch That just shows me even more why I'm glad I chose the ETF, even though it's a little more expensive.
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•@AlexBloch Hmm, I see the biggest advantage in factor investing with a multi-factor approach. The GDP weighting and the 1% cap are listed as advantages, but they don’t necessarily have to be. Above all, this is likely to increase the proportion of small- and mid-cap stocks. Possibly also value stocks. Both of which are considered a premium. Especially when combined. The $GERD should already have that, though, thanks to its multi-factor approach. The U.S. weighting also decreases if, for example, I overweight value with the $XDEV. If I then add an EM ETF, I end up below 45% U.S.
Even the 300 additional stocks compared to the $SPYI don’t automatically help. Historically, for example, small-cap growth stocks have, on average, underperformed value stocks. So if I were to target the 300 most growth-heavy stocks (growth in the sense of a high debt-to-equity ratio) to generate excess returns, I would do so.
I don’t know how Gerd manages to include those 300 additional stocks. It’s possible that what I said doesn’t apply there. But I don’t know. All I’m trying to say is: all of this could be an advantage, but it doesn’t have to be. And in some cases, perhaps not for the reasons mentioned.
Even the 300 additional stocks compared to the $SPYI don’t automatically help. Historically, for example, small-cap growth stocks have, on average, underperformed value stocks. So if I were to target the 300 most growth-heavy stocks (growth in the sense of a high debt-to-equity ratio) to generate excess returns, I would do so.
I don’t know how Gerd manages to include those 300 additional stocks. It’s possible that what I said doesn’t apply there. But I don’t know. All I’m trying to say is: all of this could be an advantage, but it doesn’t have to be. And in some cases, perhaps not for the reasons mentioned.
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