L&G Gerd Kommer Multifactor Eq ETF

Comdirect - Birthday promotion!

Good morning dear Quinies,

I became aware of a cool Comdirect promotion through our dwarf's junior custody account.

First of all: I had a custody account with Comdirect for many years before I switched to ING and never had any problems there and always received first-class support when I needed it. I only switched at the time for cost reasons. As part of the campaign that I would like to present to you in more detail, I have now opened a second custody account with Comdirect again.

Specifically, Comdirect is offering the following when opening a custody account until 05.12.2024:

• Free custody account management (already standard for regular savings plan executions)
• Free savings plans for the entire available range of shares, funds, ETFs and certificates for 30 months
• 3.90 flat fee per trade (i.e. no additional costs in live trading, otherwise plus exchange-dependent fees)
• When opening a Tagesgeld-Plus account, there is 3.0% p.a. for 30 weeks on this account for new customers

Why have I opened a second custody account there?

As some of you may know, share savings plans at ING are subject to a fee. In addition, unlike ING, Comdirect offers the option of adding other/more shares/ETFs (a number of growth stocks, REITs and private equity, which are not possible with ING) to a savings plan. This was the decisive advantage for me. Comdirect also offers the option of taking out a securities loan and opening foreign currency accounts. Of course, I also used a payback coupon when I opened the account💰(more content from me on the subject of cashback soon😉, I received/will receive 6,000 points, which equates to €60, so some trades would already have been financed).

Since my main strategy at ING runs fully automatically without any effort on my part, but I realize that I'm getting a bit bored without a bit of playing and experimenting in the investment area, I'm using the second custody account at Comdirect as a "gamble portfolio" for the next 30 months. After that, the securities will probably be transferred to ING and I'll think about what to do with them.

So I will invest part of my Christmas money (€2,500) once on 23.11.24 as a savings plan in the following 6 individual stocks and 4 ETFs and then save €25 each month on the 1st for the next 30 months (we are really talking about gambling money here, share of the portfolio <5% of my total portfolio):

$PLTR (-0,32%)

$CPRT (+1,19%)

$SFM (-0,3%)

$D05 (-0,55%)

$RR. (+0,2%)

$SOFI (+0,92%)

$VUCP (-0%)

$K0MR (+0,05%)

$JEGP (-0,01%)

$FLXX (+0,06%)

From January 2025 I will share monthly updates on my "gamblefolio" here with you.

If you are interested in opening a securities account with Comdirect as part of the birthday campaign, please use the reference link in my bio😉.

I hope you find the article interesting (please leave a like).

Have a nice, relaxed Sunday🆓😎.

Greetings, Marcus

Hello everyone,

I would like to introduce you to my simple but fine portfolio. First about me, I'm 21, a student and still live at home. I started investing almost six months ago and have now switched from my initial foolishness to a more proven concept.

I plan to build up my portfolio into old age and will increase my savings plan rate from €70 to €200 from next year onwards - possibly even higher with more. The $CSPX (+0,07%) weighting will be reduced to 20% in the future, while I'm not sure whether $VWCE (-0,01%) unsure whether I should keep it or replace it with the $K0MR (+0,05%) (despite the higher costs) or the $SPYI (+0,07%) which seems attractive mainly because of the broader diversification. $VWCE (-0,01%) seems attractive.

I realize at the end of the day that this doesn't make the roast any fatter, nevertheless I would appreciate your opinions and thanks to anyone who has read through this.

Thank you!

World vs World Value (vs World Quality vs World Momentum)

Facts, figures and data (as at 06/2024)

Seriously now? The third post within a few days in the same pattern? Don't you have to look after your child? 🤦

Yes, I do. But in the first article in this series [1] @FlorianoPerlini asked me to compare the MSCI World Index not only with the MSCI World Momentum Index, but also with Quality [2] and Value. And since I was in a giving mood, I complied with this request and end the series with this comparison of World vs Value. At the end there is also a conclusion on World vs Value vs Quality vs Momentum.

All right. Let's get it over with then. Will there be another plot twist at the end this time?

Nope. There is one right now. Just as there are no ETFs on the MSCI World Quality Index [2], there are none on the MSCI World Value Index [3] [4]. Instead, some ETFs use the MSCI World Enhanced Value Index [5] as a basis. This is a shame because the MSCI World Value Index has been around for 50 years and in those 50 years it has outperformed the MSCI World Index by an average of 11.33% vs 10.96% per annum. Even though it has not stood a chance against the MSCI World in the last 10 years.

In comparison, the MSCI World Enhanced Value Index has only been around since 1997, and although it has beaten the MSCI World since its inception, it has performed even worse than the MSCI World Value Index over the last 10 years.

Stop talking, I'm here for the numbers! But this time please compare with an index that actually exists as an ETF.

Okay. Here are the average annual returns of the MSCI World Index, MSCI World Value Index and MSCI World Enhanced Value Index over the last X years:

5 years, World: 13.31%, Value: 9.89%, Enhanced: 9.02%

10 years, World: 9.71%, Value: 6.9%, Enhanced: 5.43%

27 years (Enhanced edition), World: 6.95%, Enhanced: 8.4%

50 years (Value edition), World: 10.96%, Value: 11.33%

I suck at math. Impress me with absolute numbers!

Sorry, this time it will be less impressive.

If you invested USD 10,000 in the MSCI World 50 years ago, you would have invested USD 1,812,685.25 today. If you had opted for the MSCI World Value Index instead, you would now have USD 2,140,969.36.

If you invested USD 10,000 in the MSCI World 27 years ago, you would now have USD 61,359.42. If you had opted for the MSCI World Enhanced Value Index instead, you would now have USD 88,265.42.

So the differences are not that big. In addition, you will probably hear the fees for a value ETF, which will further reduce the advantage.

Hmmm, is the risk at least lower then?

The maximum drawdown of the World over the last 27 years is 57.82%, that of Enhanced Value 62.01%. The Sharpe ratio is 0.36 for the World and 0.42 for the Enhanced Value. Further comparative values can be found at [5]. The comparative figures for the Value Index can be found at [4].

So the facts for World, Momentum, Quality and Value are on the table. Which one should I buy?

All three have proven that it is possible to beat the global equity market with a single index over the long term. In my view, all three are suitable, in combination or on their own, to form the core of a portfolio or to act as satellites. However, there are no ETFs that track the Quality and Value indices. If you opt for an ETF on a related index, it should be analyzed beforehand. Alternatively, the underlying strategy of the index can of course also be pursued with individual shares.

In the case of Value, it is noticeable that it has performed significantly worse than the other two in recent years and has also failed to beat the World Index. Due to the historically better return compared to the MSCI World, the regression to the middle could suggest that Value could perform better again in the near future and Quality / Momentum somewhat worse.

But these are all guesses. Ultimately, everyone has to decide for themselves whether it should be a World, one of the factor indices mentioned, a combination or something completely different. Of course, you could also invest in a multi-factor ETF such as $IBCZ (+0,06%) or $K0MR (+0,05%) for example. However, if you do this, please familiarize yourself with the underlying indices beforehand.

And what do you do now with these findings?

As part of my company pension plan, I have so far saved in a world ETF. I have reallocated 50% of this to a momentum ETF and 50% to a quality ETF. My ETF portfolio will remain unchanged for the time being. As soon as my positions are full, however, I will think again about whether and, if so, which factor I should add to my portfolio in future and with what weighting.

PS: The GIF is for @Alpalaka 😘

sources (the fact sheets are constantly updated, this post is not)

[1] https://getqu.in/CDEnfS/

[2] https://getqu.in/HhbBYl/

[3] https://www.justetf.com/de/how-to/invest-in-value-etfs.html

[4] https://www.msci.com/www/fact-sheet/msci-world-value-index/06457479

[5] https://www.msci.com/documents/10199/174e3915-2087-4c5b-815b-c1b7ea1ccbbf

Guys, you might have the coolest portfolio in the world, with which you have already made 40% YTD. But to me, today $GERD (-0,03%)
$K0MR (+0,05%) a heart today:

Interesting contribution from $GERD (-0,03%)
$K0MR (+0,05%) on his blog. There are umpteen strategies - but the greatest profit can be achieved automatically by avoiding a few things: https://gerd-kommer.de/via-negativa/

@DonkeyInvestor I didn't know how else to cope with the trauma. 😂

$GERD (-0,03%)
$K0MR (+0,05%)

For beginners and Kommer fans/interested parties, video is long! 33 minutes

"In this video we reveal the details behind the Gerd Kommer Multifactor Equity Index. The index on which the Gerd Kommer ETF is based was developed by Dr. Gerd Kommer and team in cooperation with Solactive AG and LGIM in 2022 and 2023. Daniel Kanzler, Head of Investment of the Gerd Kommer team, explains the logic and functionality of the Gerd Kommer Index. The index design takes into account a number of important findings and best practices in the field of factor investing. With the Gerd Kommer ETF, which is based on this index, an investor can conveniently implement the equity portion of the "world portfolio concept" in just one single product."

Der Gerd Kommer Multifactor Equity Index (Nerd-Version) - YouTube

$GERD (-0,03%)
$K0MR (+0,05%)

Now that the Gerd Kommer ETF has collected the 100 million $GERD (-0,03%) and the $K0MR (+0,05%) Finanzfluss also took a closer look at the ETF and uploaded a video today

Was taugt der neue Welt-ETF von Gerd Kommer? - YouTube

1st Gerd Kommer dividend is here :D

$K0MR (+0,05%)
$GERD (-0,03%)

Gerd Kommer ETF 3 videos from Gerd about ETF and questions from users

Part 1: https://www.youtube.com/watch?v=yN-MQjKYKc8

Part 2: https://www.youtube.com/watch?v=FKTywG0ZMhM

Part 3: https://www.youtube.com/watch?v=_qeELKsvJqs

Echtgeld.tv about the ETF: https://youtu.be/NxAMILuFABw?t=1250

For the people who are still considering or dealing with it

Beautiful quiet Sunday you then still wished.