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Aah91
@Aah91
6Mo·

Hello everyone,

I need your help.

I have been saving for a custody account for my daughter since last year. She was born 5 weeks ago.

At the moment the custody account is still in my name and I want to keep it that way for the time being. (Yes, I am aware that this reduces the return due to tax compared to a junior custody account, but I feel more comfortable with it at the moment).

I'm currently saving €50 plus X. Money that was given as a birthday present was added on top.


You can see the portfolio attached.

I started with 50% $LYPG (+2,17 %) and 50% $ACWI .

Then later I added the $IEMA (+0,2 %) added later.

At the moment I am saving about 45% of the $ACWI and the $IEMA (+0,2 %) and with 10% the $LYPG.


Now Grandma would also like to save 50 per month and we have agreed (for reasons) to do the whole thing on my custody account. (Again, I am aware of the advantages and disadvantages).


Now to my question:

What would you guys recommend grandma should save in if it's going to be her own position(s)? How would you divide up the €50? Just take another All World and EM? Or would you rather include a sector ETF?


Many thanks for your support and your patience in reading so much text.

Greetings

aah91

3Positions
1 166,05 €
14,88 %
2
15 Commentaires
James@Jamez
6Mo
Everything in one all world and ready
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Marcel@Mcl1991
6Mo
Congratulations on the offspring 😌 🤗
I wouldn't add any more positions. Especially not double indices, but put the capital into the All world etf as well. The more capital is in there, the more it can work.
Why should it necessarily be another position?
And why did you choose $ACWI as the core?
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Aah91@Aah91
6Mo
@Mcl1991 Hey, thanks for your message. To the first question: It should be an extra position so that Grandma can say "This is from Grandma". Regarding the second question: I was wavering between World and All World as the core. I thought an All World would give me the broadest base and the least amount of work with hopefully a solid result when the little one gets her money.
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Marcel@Mcl1991
6Mo
@Aah91 Gladly 😌 okay so if that's your wish, then you could do that with another double position. However, I really wouldn't want to create a new/double position.
I'm a fan of sector ETFs, but I'm not that deep into them to say how they will perform in the long term. I mostly trade them in the short term.
However, I believe that sectors such as oil, uranium and healthcare will continue to be very important in the coming years. So you could take a closer look at ETF sectors.

You already have a tech ETF as an addition, so my first choice, a Nasdaq ETF, would no longer be an option.

With regard to the all world, I would have chosen another one because the TER of the $acwi is a bit high at 0.45%. The $FWRG, for example, has only 0.15% and the $VWCE only 0.22%.
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Kevin E.@KevinE
6Mo
@Aah91 I think "this is from grandma" is a good reason to only take one ETF from all the relatives. Should the child now prefer the grandma because she has more money than the other grandma / aunt, etc.?
I personally think "This is from your family/relatives" is a much nicer touch.
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Aah91@Aah91
6Mo
@KevinC Thank you for your feedback. Grandma is still very analog and likes to go to her bank branch and fill out transfers on paper. That's why (and because she doesn't want to invest the money for 18 years and therefore doesn't want a junior custody account) she wants to invest it "with me". The clear separation therefore makes sense from my point of view and is understandable. It's not a question of "who gives more" or "who has more". It's just about the overview. In the end, it's the little one's money anyway and where it comes from plays a subordinate role.
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Aah91@Aah91
6Mo
@Mcl1991 I'll think about taking one of the "cheaper" ones. I probably wasn't quite careful with my selection. I'll see if I can add a smaller proportion (maybe 10-20%) of a sector ETF for Grandma. As you mentioned, I could imagine healthcare or energy.
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GreenWash@GreenWash
6Mo
There are already EM in $ACWI, whether you want to weight them higher than is automatically done is of course up to you. But I would simply add the $ISAC or $SPYI.
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Aah91@Aah91
6Mo
@GreenWash I must confess I hadn't thought about it. I've only ever had the "World" on my radar and I buy it for myself. But I wanted to have a broader base here and therefore took the "All World". In my madness to do something, I then added the EM to diversify. But I totally agree with you. If you think about it, it doesn't quite make sense. Actually, I don't necessarily want to weight them higher.
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GreenWash@GreenWash
6Mo
@Aah91 Then take the simplest solution, you'll be fine with it and if the EM becomes more interesting again, they'll go with it. :)
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Aktienmasseur@Aktienmasseur
6Mo
Far too complex an idea. At the end of the day, the stock market is about returns. You invest money and want to achieve the maximum with as little effort as possible. You should use the right vehicles for this. The grandma thing is not an argument but simply a lack of understanding.

"Yes, we have saved the same ETF 8 times for you because grandma is analog."

You can also explain the digital world to grandma.🤨
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Leonardo@Leoriccioni
6Mo
Your ACWI is too expensive. Search the same etf but with more less cost. 0,5% for a ETF is very high. You can find etf for 0,1% or less than that
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Julian@MoneyISnotREAL
6Mo
Only save in one ETF. I would go for your physical replication AND choose a much cheaper ETF (max. 0.2% TER). Amundi already offers the MSCI (without emerging markets) for 0.05% TER.
That is 9x cheaper than your chosen ETF (0.45% to 0.05%)

ACWI = with emerging markets
ACWI IMI = with emerging markets and small caps

Keep it simple. You're already putting far too much effort into this than necessary.

Grandma can either make a standing order to the clearing account, give you the money in cash and you invest it, or or.

Sector ETF for long-term investment ... Better not. How do you know that the sector ETF will still be running in 20 years' time?
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Aah91@Aah91
6Mo
@MoneyISnotREAL Which one do you mean exactly? I can't find one with 0.05%. Maybe you can link it here.
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Julian@MoneyISnotREAL
6Mo
@Aah91 $PRAW $PR1W

As I said, the world ETFs usually have a TER of around 0.12 - 0.2%.
I myself have the one from HSBC $HMWO with a TER of 0.15%.

Amunid also has an All-World-Country (is like ACWI) $WEBG with 0.07% TER.
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