2Settimana·

ETF decision aid

Hi folks,

I also wanted to take the opportunity to ask the community for advice. I'm still quite new here (started in January 2024) and have been thinking about changing my ETF savings plan strategy for a few weeks. I am currently saving the 5 ETFs you see in the screenshot below, each with 200€ / month.

$XDWD (+0,33%)
$IUIT (+0,89%)
$CSNDX (+0,42%)
$VWRL (+0,24%)
$VUSA (+0,52%)

However, I've been thinking more and more about stopping either the S&P 500 Info Tech. or the NASDAQ 100. I actually have two ETFs in mind. Divided into distributing and distributing per world and with a focus on the US, which would then be the case.

However, in recent weeks we have been reading more and more here and in other media about the $TDIV (+0,04%) and also from $JEGP (+1,3%) .

I'm currently a bit torn because I actually want to reduce to four ETFs, but due to $TDIV (+0,04%) and $JEGP (+1,3%) tempted to expand after all 🙈😅

What would you advise me to do? My investment horizon is 30+ years. In addition to the €1,000 in ETFs, I save €1,000 a month to invest in individual shares.

Completely different ideas for the constellation are also welcome. I like to be inspired and think about it.

PS: before I forget, a huge thank you to this great community, which has made my start in investing much easier. The daily posts and discussions are fun and expand my knowledge from day to day. A positive side effect is the reduced consumption of other social media 🤣

Enough said, I look forward to your feedback. Have a nice rest of Sunday everyone!

John

15 Commenti

MrSchnitzel@MrSchnitzel

2Settimana

Hello Johannes,
Why so many Etfs? Lots of overlaps...

Reduce to a maximum of 3 and then save a little higher to benefit more from compound interest.

So I would take/recommend either the Msci World or the All World as a basis.

You can also use either the Nasdaq100 or the S&P500 Info Tech. Alternatively, take a look at the AI & Big Data.

You can also add the Tdiv dividend ETF to your portfolio for monthly cash flow.

That would be 3 ETFs and you could profit more from them than from the ones you currently have scattered around.

Best regards my dear and very nice savings rate and great that you also still have a long investment horizon, top conditions. :)

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Johannes@Johannes1993

2Settimana

@MrSchnitzel Thank you for your answer and your idea.
Just to be clear: you would delete the two distributing ETFs and $IUIT or $CSNDX and possibly include $TDIV? Then I would have two accumulating and one distributing. Just so I've understood correctly 😅
I like the idea of a distributing ETF, i.e. cash flow without having to sell shares. I know, a controversial topic... 🙈 The dividend is higher with $TDIV than with $VWRL and $VUSA, but the performance is worse. At least historically. If you look at the current situation and the dollar, I would also say: get into $TDIV! But then I think about the long investment horizon again and believe that the time/performance of $VWRL and $VUSA will come again and that the dividend will also be increased by almost 10% per year in the long term.

What do you think of $JEGP?

I'm annoyed that I didn't start earlier and hope to be able to "catch up" a bit with my savings rate. But it's great to hear that you're already on board and have a longer investment horizon 😀

Best regards
John

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KurwaBober@KurwaBober

2Settimana

@MrSchnitzel I agree with your points. It often makes sense to concentrate on two or three ETFs. This keeps you on top of things, reduces overlaps and simplifies portfolio management considerably.

If dividends are important to you, I would recommend $VWRL as a basis.

I would personally steer clear of ETFs with particularly high dividend yields. Even if the distributions appear attractive at first glance, such products usually perform worse in terms of total return than broad-based global ETFs. One of the reasons for this is that they are often heavily focused on individual sectors and neglect share price growth.

A classic all-world ETF such as VWRL is therefore often the better choice in the long term. Even if the dividend yield is somewhat lower at first glance.

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MrSchnitzel@MrSchnitzel

2Settimana

@Johannes1993 Gladly,
Yes, if you absolutely want a dividend ETF, just one, the choice is up to you. In any case, concentrate on the basis, e.g. the Msci World. As a supplement to increase the return, you can choose a Tech Etf. I own the AI & Big Data, you can also choose the Nasdaq or S&P 500 Info Tech. Just pay attention to the respective weightings. These are therefore 2 Etfs. With dividend etfs, you have to research what makes sense for you personally and what you like. I only own 2 Etfs, a few individual stocks and Bitcoin as an admixture.
My allocation is as follows, 70% Etfs (the 2 so-called) 15% equities and 15% Bitcoin.
Don't fret 30 years + is still a great time that you can use, just keep at it. Better now than never or even later. Don't stress, investing is for the long term with a lot of patience and a clear strategy. :)

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Johannes@Johannes1993

2Settimana

@KurwaBober Thank you for your feedback 👍

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Mirko@Percula

2Settimana

@MrSchnitzel hi, I just want to tell you that you are young and have a long investment horizon. Increase your risk and avoid broad diversification and dividends. This will bring the compound interest effect to its knees. This means you forgo returns.
Go for growth.
Volatility is particularly important for a savings plan.

What use is an MSCi world with 1300 stocks if the first 20 positions are largely responsible for the performance?

That's just my opinion.

Have a nice evening

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MrSchnitzel@MrSchnitzel

2Settimana

@Percula huhu my dear,
thanks for the honest feedback, I appreciate it. I feel good about my strategy at the moment. I am just trying to beat the market a bit. My base 50% is the Msci World. 20% of AI & Big Data to increase the return a bit.
I know that very few people beat the market in the long term, right? Sure, you can do it and I have acquired some knowledge, so I am not completely inexperienced and the more I invest in the ETFs at the beginning, the more I benefit from compound interest later? However, I'm simply finding it difficult to select stocks and to get started. Fundamental analysis is definitely the most important thing.
I can simply let my savings plan run for the 2 so-called ETFs, but I find it difficult to make a savings plan for shares, as something can always happen and distribution is also problematic. In the event of major corrections, I can invest the extra money in shares and simply leave the savings plan for the ETFs running.
As I'm younger, I have 15% in Bitcoin and a small amount in equities, so there is some risk to ensure a better return.
What exactly would you change?
Best regards and have a nice evening too.

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Mirko@Percula

2Settimana

@MrSchnitzel Good evening again.
You have to decide for yourself what you want to do with the money you have earned.
If I were you, I wouldn't invest in individual shares or dividend ETFs. Dividend stocks do not generate such strong price gains.
Unfortunately, you are guaranteed to have to pay tax on the income and then reinvest it when your portfolio reaches a certain size. You are in Germany.
That's why it's very important to think about a strategy and pursue it in a disciplined manner and not get confused by short-term trends.

My basis has long been Ishares S&P Information Technology, which accounts for around 45% of my portfolio. It has only 69 positions and the first 10 make up 76%. This is what I deliberately wanted. These are strong US companies in the tech sector, but they all earn their money globally.

Unfortunately, my Bitcoin position has grown to around 40%. But I'm deliberately keeping it that way. I didn't invest in Bitcoins directly back then, I wasn't comfortable with crypto exchanges and wallets, but in physical Bitcoin ETPs, which are tax-free after one year.

Then I also have Berkshire Hathaway B as a value position.

Xetra Gold is also a must. Tax-free after one year.

My two savings plans are also deliberately invested in the following two ETFs.
Amundi NASDAQ-100 Daily (2x) Leveraged and
Amundi ETF Leveraged (2x) MSCI USA.

When the stock market goes down, increase savings plans. When it recovers is like a turbo.

My portfolio definitely has a high volatility and is not without risk.

My benchmark is the FTSE All Word.

But I also deal with it on a daily basis.

I also do day trading via Pepperstone and Tradingview.

It's just fun.
It's money that works for you.

That's how it looks for me.

Kind regards

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Johannes@Johannes1993

2Settimana

@Percula Thank you very much for your detailed outlook.

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MrSchnitzel@MrSchnitzel

2Settimana

@Percula Good morning dear,
Trading is not for me, I want to invest for the long term or buy and hold.
I also had my eye on the S&P 500 Information Tech as my 2nd ETF, but I decided on the AI & Big Data, as it has a better distribution of companies and additional companies. The Info Tech simply has a cluster risk because, as you said, the top 5 companies make up just under 70%.
I also think it's respectable to have 45% of the portfolio invested in the Tech Etf.
The leverage etfs are also remarkable, I don't know much about leverage... are they long term leverage or how does it work?
Is Berkshire your only single stock?
How much does your All World make up of the portfolio? So you are 4 Etfs, if I understood correctly?
In any case, respect for such a portfolio, wish you much success with it and the maximum return.🍀
I would be happy if you could tell me more about your strategy, it sounds very exciting. :)
Have a great start to the week.

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AdriInvests@AdriInvests

2Settimana

I would save in the nasdaq-100 and throw everything else out. The nasdaq-100 is diversified enough. Above all because the highly weighted companies also sell worldwide. World ETFs are crap in my opinion, as they contain too many bad positions that reduce the returns of the good (mostly western) companies. I'm not familiar with the S&P IT ETF, but I would imagine that there are higher fees and the focus on IT unnecessarily limits the choice of positions.
To summarize, you would save on fees, eliminate redundancies, still stay diversified and save in an ETF that has high relevance and therefore high volume.

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