1J·

Depot realignment

My ETF strategy: 3 ETFs as the core for long-term success

After a lot of thought, I have decided to make some changes. I have decided to split my monthly investments into three ETFs that offer a mix of growth, stability and income potential. From now on, I will invest €1000 per month in these three ETFs, with all dividends being automatically reinvested to maximize the compound interest effect.

Fidelity Global Quality Income $FGEQ (+0,75 %)

This ETF focuses on high-quality companies worldwide that pay stable dividends. It provides regular income streams and is less volatile than growth stocks. As I am looking for solid passive income over the long term, this ETF is an important part of my portfolio. All dividends from this ETF are reinvested to further grow the capital.

VanEck Developed Markets Dividend $TDIV (-0,13 %)

Similar to the Fidelity ETF, this one invests in high-dividend companies, but focuses on developed markets. The VanEck ETF helps me to diversify my portfolio even more broadly and ensures regular distributions, which are also reinvested. This allows me to use the dividends as a growth driver without them weighing on the portfolio.

Nasdaq 100 ETF $CSNDX (+2,56 %)

The Nasdaq 100 is my growth driver. It invests in the largest technology and growth companies in the US, which gives me strong leverage to the technology and innovation sector. While the Nasdaq 100 is more volatile than the S&P 500, the potential returns from the tech sector can be very rewarding over the long term. Again, all dividends are automatically reinvested to further increase the growth rate.

My strategy

With this combination of dividend and growth ETFs, I am aiming for a balanced portfolio that offers both stable income and long-term growth. I focus on a long-term investment strategy that grows regularly with monthly investments of €1000. The automatic reinvestment of dividends is intended to maximize the compound interest effect and thus allow the portfolio to grow continuously over the years.

Asia and emerging markets via individual shares

As I want to invest specifically in the Asian and emerging markets, I plan to cover the corresponding proportion via individual shares. I want to focus on high-quality companies that are growing strongly in these regions and offer good long-term earnings opportunities. My favorites: $6861 (+1,09 %)
$TKOMY
$1211 (+2,11 %)
$FLXI (+0,13 %)

Individual shares - focus on quality

I currently own a lot of individual shares (some bought without a plan) and plan to reduce these to a maximum of 20 strong quality shares. I want to consolidate my portfolio and only invest in companies that have high growth and earnings potential and are robust enough to perform well even in difficult market phases.

Conclusion:

With this strategy of the 3 ETFs as core and a careful selection of 20 strong individual stocks, I want to build a well-diversified portfolio that not only provides stable income, but also benefits from global growth in the long term. By regularly investing €1000 per month and reinvesting all dividends, I aim to continuously grow my portfolio and achieve long-term financial security.

I would be delighted to hear your thoughts on my new strategy!

Have a great evening and a successful start to the new week!

LG your Max

36 Commentaires

Kate🦋@Iwamoto

14H

This is probably not the strongest strategy/plan. But any plan is better than none. I was just visiting my younger cousin and to use a meme, he actually has tears in his eyes 24/7 that there's not enough money and is afflicted by this bias of not being able to save. That's nonsense, of course. I recommended to him: The Richest Man in Babylon by G. C. Clarson as a first step and called a spade a spade: ETF savings plan, even with a small amount (time is leverage). He has probably forgotten it again and will never invest. Therefore, even a supposedly weak plan is a good plan. Weak is an exaggeration, but you know what I mean.

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KevinE@KevinE

13H

@Iwamoto With your cousin, however, the problem doesn't seem to be strategy or a plan, but a lack of impulse control (when making purchases), a lack of will to save or simply too little income...

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Kate🦋@Iwamoto

13H

@KevinE one way or another. That's why any plan is better than no plan.

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Maximilian@Max095

@Iwamoto Thank you for your message and your feedback. Why do you think my plan is weak and what would be a good strategy for you?
LG Max

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Kate🦋@Iwamoto

@Max095 weak is a big exaggeration, sorry. I am not convinced by the first ETF.

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Maximilian@Max095

@Iwamoto Okay thanks for your feedback 😊 which ETF would be your favorite and why are you not 100% convinced by Fidelity?

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TaubeSmash@TaubeSmash

12H

I have similar thoughts in my portfolio and a similar strategy. But remember that you should somehow get EM into your portfolio, albeit underweighted. I think this is where the biggest growth music will be played in the long term and it would be a shame if you were only on the sidelines.

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Maximilian@Max095

@TaubeSmash Thank you for your feedback. I agree with you. I would like to cover this area with individual stocks and an India ETF.

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NichtRelevant@NichtRelevant

Sounds like a good plan. Good luck with it! 👍

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Iwas M.@SSIT

The Xtrackers Nasdaq $XNAS is cheaper in terms of TER and has outperformed the others (ishares, invesco) by a my.
In the end it's a matter of taste. :)

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Maximilian@Max095

23H

@SSIT Thanks for the hint. :)

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risk_minister_tscqr@risk_minister_tscqr

15H

The $ANAV is even cheaper

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K@TechNav

22H

I also have a 3 ETF core that always makes up over 75% of the portfolio

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Stulle 🥪@Stullen-Portfolio

21H

First of all: the most important thing is that you are happy with your investment!

Now two notes: just like $TDIV, $FGEQ also only includes companies from industrialized nations. Nothing wrong with that, but you don't seem to have known it.

Secondly, the companies have reasons for paying a dividend or not paying a dividend. That only says something about the company as such or its quality to a limited extent. In your investment, you now go and exclude those companies from 2 of the 3 ETFs that pay no or little dividend. You can do this - but I wonder whether this is actually a clever criterion in the long term 🤷 Maybe you can ask yourself the same question...

Greetings
🥪

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Susanne@Isus01010

14H

I am currently going the other way round, from a pure ETF portfolio to an admixture of individual stocks. Good luck!

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Maximilian@Max095

@Isus01010 Thank you very much, I wish you the same! :) What is your exact strategy?

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Susanne@Isus01010

@Max095 I weight by region and buy ETFs accordingly. I have inherited a few individual stocks and incorporated them and I have bought a few classic quality stocks to balance out the tech bias. But I'm still very much at the beginning when it comes to shares. I was actually aiming for a maximum of 30 percent, but I'm now slightly over that. So at the moment new capital is flowing back into the ETFs, even if there are still one or two stocks that would appeal to me

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Maximilian@Max095

@Isus01010 very interesting. Which ETFs do you have in your portfolio? LG Max

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Sebastian W.@Sebastian2000

Why did you opt for distributing ETFs in the first place if all dividends are automatically reinvested anyway? It really doesn't make any tax sense because you pay tax on the dividend and then reinvest the tax-reduced dividend. Or am I missing something?

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Maximilian@Max095

@Sebastian2000 because of the motivation to stay on the ball. The Nasdaq is accumulating. Why not use both advantages?

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Sebastian W.@Sebastian2000

@Max095 I can absolutely see that, but if you invest them directly and immediately either way, it's so-so. Personally, I also have both, but the distributor only to the extent that it roughly exhausts the exemption order and then beyond that a thesaver

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Tenbagger2024@Tenbagger2024

Hello dear, $FJ2P could be an alternative to the NASDAQ. It has a nice country weighting. And TSMC and Samsung are not uninteresting.
Also less cluster risk as far as Nvidia and the USA are concerned.

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Maximilian@Max095

@Tenbagger2024 Thank you my friend! :) Unfortunately, the ETF is not tradable with my broker. Would you know of an alternative?

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Tenbagger2024@Tenbagger2024

@Max095
What a shame, because I really like it.
I'll see if there are any alternatives

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Maximilian@Max095

@Tenbagger2024 I also find the ETF extremely exciting. Especially because of the weighting

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Tenbagger2024@Tenbagger2024

@Max095
$XLKS It only ran very well in the USA, but in the long term.

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Maximilian@Max095

@Tenbagger2024 many thanks :)

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Tenbagger2024@Tenbagger2024

@Max095
$WELL $WITS $XNGI $CHIP

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Maximilian@Max095

@Tenbagger2024 Thank you for your efforts. I'll have a look at all of them right away.

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Maximilian@Max095

@Tenbagger2024 are all very similar to the Nasdaq in terms of positions. Too bad the Fidelity is not tradable for me🙈

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Tenbagger2024@Tenbagger2024

@Max095
Perhaps this is because it is a fund and not an ETF

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Tenbagger2024@Tenbagger2024

@Max095
But take a look at the YTD performance of the NASDAQ. And take a look at the YTD performance of the ETFs I sent you.
There is a big difference

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Voir toutes les 2 autres réponses

Uwe@SchlaubiSchlumpf

Is your approach based on empirical science or is it more feelgood?

Personally, I would select ETFs that are less correlated with each other in order to diversify between less correlated risks. For example, regionally diversified, factor diversified or diversified across asset classes. (regional, asset class, factors)

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Maximilian@Max095

@SchlaubiSchlumpf as I feel comfortable with it. A large part is also covered by the shares.

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