7Mes·

Hello dear Getquin users,

I started investing in April and started with a savings plan.

$IWDA (-0,22%)
$CSNDX (-0,13%)
$CSPX (-0,21%)

In the meantime, I have also invested in individual actions and am getting more and more involved in investing.

Now my question: Is it more worthwhile to reallocate the ETFs and focus on a single ETF, in this case $CSPX (-0,21%) ?

And if not, what are the advantages of continuing to invest in all 3?

16 Commenti

Metis@Metis

7Mes

As a layman, you can hardly really beat the ETFs in the long term (+15 years) with individual stocks.

Regarding your ETF selection: you need to know whether you want to invest in a US-only ETF.
I don't think it makes much sense to invest in the Nasdaq alongside the S&P500 because of the massive overlap.

But with the MSCI, you're taking the global economy with you, including a lot besides the US market.

•

Kameltrader@Kameltrader

7Mes

@Metis so would you split nasdaq resolution into everything in s&p and msci?

••

Metis@Metis

7Mes

@Kameltrader It just depends on your perception of risk. If it's worth it to you to take the risk and only bet on the 100 or so companies in the Nasdaq, then go for that. If you prefer to diversify across 500 companies, go for the S&P500.

But I would definitely go for the MSCI or similar global ETFs, especially if your investment horizon is at least 15/20/30 years.

••

Murcielago@impuff

7Mes

I also started in April. I have gradually reduced the ETFs and am concentrating more on individual shares. Please don't hate me, ETFs are for millionaires. I have stopped savings plans and invest on crash days like August 5 and sometime in November. That works much better for me.

•

Dividendenopi👴@Dividendenopi

7Mes

@impuff then let's go, tonight it was November 🙃😉

•

Metis@Metis

7Mes

@impuff Why exactly are ETFs for millionaires? Laymen can hardly beat the market in the long term with individual stocks and on top of that with very little financial means.

•

Murcielago@impuff

7Mes

As a layman, you have little capital to start with, that's true. The more capital you have, the more broadly you should diversify it. But it is also true that the more broadly diversified you are, the lower the return. I have also observed this with my portfolio. The 30 percent in individual shares performed much better than the 70 percent in ETFs. That's why I reallocated. I simply have an affinity for risk and can withstand fluctuations. At some point, of course, I get nervous and go back into ETFs.

•

Metis@Metis

7Mes

@impuff However, you are "missing out" on compound interest returns, which global ETFs in particular can generate over their recommended holding period of +15 years. Can you always beat the market consistently over 15 years?

Btw, you shouldn't take too much risk on a small amount of capital, otherwise the little money will be gone immediately if you make the wrong choice of individual securities.

••

Metis@Metis

7Mes

@impuff Addendum: Millionaires in particular have enough cash to be able to diversify sufficiently across individual stocks.
As a private investor with an average or lower income, you can diversify significantly less via individual stocks, so that it is also worthwhile on the return side and the portfolio still remains stable in times of crisis.

••

Murcielago@impuff

7Mes

@Metis The 'little money gone' is not the private investor's problem. The normal private investor can work for x months/year and then recoup the loss. A millionaire can't, because that would be terrible. They have different risk profiles. I don't want to beat the market or keep my portfolio stable in times of crisis (that's not my motive), I want to bet my fortune on a few stocks. Just like the private investor who bought Apple 20 years ago. I want to be like that

••

Metis@Metis

7Mes

@impuff However, the normal private investor with a €200 savings rate is much more deterred from investing at all after a total loss of the little savings than a millionaire who can bet his millions on 50 to 100 securities with successful returns and can cope if some of them don't work out. And millionaires also have ongoing sources of income ;)

Just ask those who were burned by the burst dotcom bubble. For many of them, the stock market was just the devil's play, nothing more. Very few of them came back years later.

••

Murcielago@impuff

7Mes

@Metis I do ☺️👍 May I follow you?

••

Metis@Metis

7Mes

@impuff You may follow me :D

••

JJ-Invest@JJJanson

7Mes

@impuff if ETFs are for millionaires, then leverage certificates are perfect for small investors I guess?🤣

••

tzz_arah@tzz_arah

7Mes

I love my CSNDX and it's doing much better than my individual stocks! I also have the IWDA. Everyone says it's way too similar to the NQ, but I couldn't choose one over the other 😅
S&P in addition would be too much for me...
So individual stocks are also fun, but you have to do a lot more than with ETFs

••

Matthias@Rebellion81

7Mes

SP500 4 Life :)

••