What is your investment horizon?
Your current execution does not speak for much diversification at the moment.
Your current execution does not speak for much diversification at the moment.
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@Metis 45 years
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@Maddy-0 At 45 years, I would definitely swap the Nasdaq for an AllWorld/AllCountry as a stable basis for my portfolio.
100 companies vs. +3,000 companies depending on the world ETF. In the medium term, the Nasdaq100 can be a return booster, but with so much investment time, which is your best advantage, participation in the world market with significantly fewer fluctuations is much easier to sustain for 45 years than with the Nasdaq100.
Edit: when you talk about individual stocks, you are referring to European stocks. I would do some research on the keyword home bias, which is why it can be rather disadvantageous for you to take only European stocks.
100 companies vs. +3,000 companies depending on the world ETF. In the medium term, the Nasdaq100 can be a return booster, but with so much investment time, which is your best advantage, participation in the world market with significantly fewer fluctuations is much easier to sustain for 45 years than with the Nasdaq100.
Edit: when you talk about individual stocks, you are referring to European stocks. I would do some research on the keyword home bias, which is why it can be rather disadvantageous for you to take only European stocks.
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@Metis The $SPYI ACWI IMI currently accounts for 40% of the portfolio. 25% NASDAQ, 15% <security:n/a:LU0908500753> 8% $QDV5 MSCI India 12% EM IMI and 10% $BTC. Savings rate is between 900-1000€ per month.
After I had quite a few shares with a small amount, I sold them all and switched to the basis above. Of course, nobody has a crystal ball, but the NASDAQ has made significantly more returns per year than the $SPYI because there is a lot of garbage in it. Volatility makes no difference to the horizon. They can both fall by 100%, but the upside is unlimited, which is why the NASDAQ is clearly ahead in the risk/reward comparison. Unfortunately, I'm still quite undecided about this, as well as whether individual stocks should be added.
After I had quite a few shares with a small amount, I sold them all and switched to the basis above. Of course, nobody has a crystal ball, but the NASDAQ has made significantly more returns per year than the $SPYI because there is a lot of garbage in it. Volatility makes no difference to the horizon. They can both fall by 100%, but the upside is unlimited, which is why the NASDAQ is clearly ahead in the risk/reward comparison. Unfortunately, I'm still quite undecided about this, as well as whether individual stocks should be added.
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@Maddy-0 And yet the Nasdaq is a mostly America, mostly tech-weighted product. Over 45 years, such a specific ETF cannot necessarily achieve continuous excess returns.
Either you will have problems at some point because of the strong America weighting, which is potentially less likely than with other nations, or because of the few sectors that can then turn around, which would be much more likely.
And you would miss out on the rest of the market, which will always have growth points.
Either you will have problems at some point because of the strong America weighting, which is potentially less likely than with other nations, or because of the few sectors that can then turn around, which would be much more likely.
And you would miss out on the rest of the market, which will always have growth points.
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