Hi,
What does the world etf have to do with emerging markets? The world etf in the classic sense includes everything except EM? 🙈 😅
What does the world etf have to do with emerging markets? The world etf in the classic sense includes everything except EM? 🙈 😅
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@Rendite_Fux I'm sorry, I thought you meant $VWRL
Then of course I take back the point about EM.
But I also prefer the Momentum Factor ETF to the normal MSCI World.
If you benchmark the two, you can also see that they always perform almost completely the same, except that the Momentum always has the slightly better performance. I believe that overweighting the strong individual stocks is a good way to outperform the normal MSCI World by 1-2% per year.
Then of course I take back the point about EM.
But I also prefer the Momentum Factor ETF to the normal MSCI World.
If you benchmark the two, you can also see that they always perform almost completely the same, except that the Momentum always has the slightly better performance. I believe that overweighting the strong individual stocks is a good way to outperform the normal MSCI World by 1-2% per year.
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@AktienAmateur069 em, small caps and Japan should not be neglected ... you don't know what will happen in the future ... even if your momentum is ok now ... the future can be very different. It can be completely different, as history shows! So you'd better take another look at it. I made the same mistake at the beginning ... but then I was taught better
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•@Testo-Investor Hi, My post was also related to using the Momentum ETF as the core of the portfolio. The description was a bit misleading, which is why I wondered why the ETF "Momentum" is compared to an investment in EM. I myself have of course also invested (slightly) in China equities in recent months, and also have an EM market ETF alongside my World ETF so that I am also invested in such emerging markets (as Gerd Kommer dutifully advises ;) ).
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@Testo-Investor I don't want to cover emerging markets broadly. The countries are simply not stable enough for me. I am nevertheless invested here in isolated cases, e.g. through the India ETF, Mercadolibre or BYD. I also deliberately leave out small caps, I simply prefer established quality companies. I cover Japan a little with $8001 and $6367, which is also weighted at over 15% in the Momentum ETF.
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•@AktienAmateur069 Basically, the excess return on small caps (small cap factor) and the theoretical excess return on emerging markets is simply that you invest in them over a long period of time via DCA, i.e. a savings plan, and that may go wrong for 10 years or longer. China, for example, is lower than it has been for many years. But in the long term, at least the statistics show that such investments are worthwhile in terms of excess returns....
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•@AktienAmateur069 big mistake your theory... Small caps have enormous potential! Just like China, cheaper than ever -problem of course- but what about in 5 years? Then you have now bought Sau Gondorf and it's off.... Japan... highly interesting ... should be weighted with at least 5% in the overall portfolio... even 15% in momentum won't help :-)
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•@Testo-Investor Don't get me wrong; I also see enormous potential in China and many companies are absolutely great! Alibaba, for example, is for me at least as strong a company as Amazon, only valued MUCH more favorably. Nevertheless, I have decided to sell my Alibaba shares because it is too unsafe for me to invest in companies where the state simply makes the CEO disappear just because he demands freer markets.
China is unpredictable and therefore the risk is simply too high for me, although I am also aware of the opportunities. In America, things are getting crazier and crazier, but I don't think companies will be over-regulated or even nationalized in the future either. It's debatable whether it wouldn't be beneficial for the population if huge companies like $META $GOOGL or $MSFT were more heavily regulated, but it's undoubtedly positive for share prices that this isn't the case.
China is unpredictable and therefore the risk is simply too high for me, although I am also aware of the opportunities. In America, things are getting crazier and crazier, but I don't think companies will be over-regulated or even nationalized in the future either. It's debatable whether it wouldn't be beneficial for the population if huge companies like $META $GOOGL or $MSFT were more heavily regulated, but it's undoubtedly positive for share prices that this isn't the case.
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•@Testo-Investor Japan would have a 15% weighting in my momentum ETF plus a 1% weighting of $6367 and $8001 in my portfolio with a total weighting of 5.75%, so that would fit😌
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•@Testo-Investor Of course, some small caps have great potential, but out of 100 small caps, perhaps 10 will manage to realize it. I don't have the confidence to filter out exactly these 10 and I don't want a small cap ETF, as the "winning small caps" always "move up" to other ETFs.
In general, however, it is also becoming increasingly difficult for small innovative companies, as the big players have much more resources to push through new innovations.
So I deliberately leave out small caps.
In general, however, it is also becoming increasingly difficult for small innovative companies, as the big players have much more resources to push through new innovations.
So I deliberately leave out small caps.
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•@AktienAmateur069 According to current science, leaving small caps out is still a mistake. I would think again. But it's your strategy and I don't want to talk you into it... it's all good
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