immagine del profilo
Hello, Kate ☀️

First of all: $FUSD is also an index ETF, as it tracks the (very special) Fidelity US Quality Income Index... 🤓

If you take a closer look at index ETFs, smart beta or factors, active/passive and focus on return orientation, you will notice that the momentum factor is particularly important. [Some time ago, the good @DonkeyInvestor wrote a few posts as a set on this subject]
For a relatively long comparison period of 30 years, the global (global!) momentum index outperforms the S&P 500.

As an investor, you have quite a few advantages combined: ☀️☀️☀️
▫️passiv invested in an index fund
▫️globale Diversification, no single nation
▫️Outperformance vs. S&P 500
▫️Teilfreistellung (in Germany)

Products are for example $XDEM or $IS3R.

The question remains, what more do you actually want? 🤷😎
(-> okay, the estimated @Epi also mentions the outperformance, but sees the potential in a strategic changing asset allocation to reduce the maxDD or the risk with at least the same return. Also very exciting, but anything but passive and with tax details to consider).

In my opinion, world momentum offers top opportunities for many passive investors, also for the additional return they may be aiming for compared to a plain vanilla MSCI World...

How do you see world momentum, @Iwanowitsch?

Greetings
🥪
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@Stullen-Portfolio
How often does rebalancing take place here? Do you react promptly and situationally?
Because if I've seen it correctly, the momentum in the Trump crash didn't perform that well. And there was hardly any reaction and rebalancing.
Is there any retrospective analysis of the Trump Customs Crash?
@Epi
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immagine del profilo
@Tenbagger2024
Rebalancing in the true sense of the word does not take place at all.
Reallocation takes place strictly on a regular basis and never depending on the situation.
It is strictly rule-based and not actively based on management decisions.
The cycle has been semi-annual to date, but there is information that it will be quarterly from August.

Yes, logically there is no direct reaction to such events, but the reaction takes place downstream based on the consideration of two different retrospective momentum phases (last 6 and last 12 months).

Greetings
🥪
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immagine del profilo
@Stullen-Portfolio
Thank you my dear,
For your quick and great answer.
Okay, if you react according to the situation, you can probably speak less of an ETF.
But rather an actively managed fund.
And dear @Iwanowitsch has already written about this.
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immagine del profilo
@Stullen-Portfolio the articles are of course linked in my profile 😎
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