It would be interesting to compare them with the MSCI World or ACWI.
Let me just guess: they are not performing better, rather worse.
I'm on vacation and the comparison is very complicated with my cell phone
Let me just guess: they are not performing better, rather worse.
I'm on vacation and the comparison is very complicated with my cell phone
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@Chefkoch256 Logically, more USA has led to higher returns in recent years and China has pulled EM down hard.
But past performance and future returns and all that... 😅
But past performance and future returns and all that... 😅
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@PowerWordChill Of course, nobody knows the future.
I just always wonder why everyone is so crazy about some niche product that has performed worse in the medium and long term in the past. Why should that change in the future?
Or is it just the dividends? They have a demonstrably negative impact on asset growth. There was a nice video on this recently from Finanztip. It's not a huge difference, but with correspondingly long investment periods, it can be several thousand euros. That's not worth the brief feeling of happiness I get from a distribution, especially because I know that I'll have more in the long term with accumulation.
I just always wonder why everyone is so crazy about some niche product that has performed worse in the medium and long term in the past. Why should that change in the future?
Or is it just the dividends? They have a demonstrably negative impact on asset growth. There was a nice video on this recently from Finanztip. It's not a huge difference, but with correspondingly long investment periods, it can be several thousand euros. That's not worth the brief feeling of happiness I get from a distribution, especially because I know that I'll have more in the long term with accumulation.
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•@Chefkoch256 In the long term, factors have outperformed the market.
You can also see the historical returns
https://gerd-kommer.de/factor-investing-die-basics/
And here with "real" ETFs
https://extraetf.com/de/etf-comparison?products=IE00BP3QZ825-etf,IE00BP3QZ601-etf,IE00BP3QZB59-etf,IE00B4L5Y983-etf
And with the EM
https://extraetf.com/de/etf-comparison?products=IE00BKM4GZ66-etf,IE00BG0SKF03-etf,IE00B48X4842-etf,IE00B23D9570-etf
You can also see the historical returns
https://gerd-kommer.de/factor-investing-die-basics/
And here with "real" ETFs
https://extraetf.com/de/etf-comparison?products=IE00BP3QZ825-etf,IE00BP3QZ601-etf,IE00BP3QZB59-etf,IE00B4L5Y983-etf
And with the EM
https://extraetf.com/de/etf-comparison?products=IE00BKM4GZ66-etf,IE00BG0SKF03-etf,IE00B48X4842-etf,IE00B23D9570-etf
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@PowerWordChill You can see that it depends enormously on the investment period and the product.
To have a worse return after 26 years requires extreme perseverance and nerves of steel to stay invested.
And even then it is not certain that the product is really better than the market as a whole.
Ultimately, it is the hope that it will behave in the future as it did in the past. Even Gerd Kommer says that this is not necessarily the case
To have a worse return after 26 years requires extreme perseverance and nerves of steel to stay invested.
And even then it is not certain that the product is really better than the market as a whole.
Ultimately, it is the hope that it will behave in the future as it did in the past. Even Gerd Kommer says that this is not necessarily the case
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•@Chefkoch256 There are only 2 things guaranteed in life death and taxes.
But I hear there are people like me who do it for fun 😘
But I hear there are people like me who do it for fun 😘
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•@PowerWordChill I understand.
And here too, the differences are not that huge...
And here too, the differences are not that huge...
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@Chefkoch256 In any case, it makes the portfolio more stable, less susceptible to bubbles and also increases the degree of diversification.
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@PowerWordChill I have the $EXI2
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@Chefkoch256? how is it supposed to contribute to diversification? The same stocks are highly weighted as in the World and <50% of them in a single sector.
https://extraetf.com/de/etf-comparison?products=DE0006289382-etf,IE00B4L5Y983-etf
If you want to diversify, you have to add stocks that are NOT highly weighted in the World. (e.g. $EXUS )
with the combination $IWDA $EXI2 you build concentrated in US tech.
Since you even bought $MSFT separately, the company alone is already almost 10% of your portfolio...
I'll be honest, that would be too much for me. 😅
https://extraetf.com/de/etf-comparison?products=DE0006289382-etf,IE00B4L5Y983-etf
If you want to diversify, you have to add stocks that are NOT highly weighted in the World. (e.g. $EXUS )
with the combination $IWDA $EXI2 you build concentrated in US tech.
Since you even bought $MSFT separately, the company alone is already almost 10% of your portfolio...
I'll be honest, that would be too much for me. 😅
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@PowerWordChill I thought it was about factors.
It's completely unsuitable for diversification, you're right.
I deliberately use it to focus on the stocks.
I see the future in US tech and Microsoft has proven that it can pick up and implement new trends very quickly, hence the huge weighting
It's completely unsuitable for diversification, you're right.
I deliberately use it to focus on the stocks.
I see the future in US tech and Microsoft has proven that it can pick up and implement new trends very quickly, hence the huge weighting
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