We currently have just under EUR 16,500, which was originally earmarked for an unscheduled repayment of the property loan 🏠. Until recently, the money was in a Trade Republic account with 3.00% interest, which is now being reduced to 2.75%. Combined with the APR on the loan and inflation, however, this amounted to a zero-sum game. Not particularly smart - but since the money belongs to both me and my wife, you have to make compromises every now and then. 😄
But now we would like to invest the amount in an ETF. Our current portfolio, in which the monthly surpluses are invested, looks like this:
- 50 % in the $HMWO (-0,53%) (HSBC MSCI World ETF, distributing - until the exemption limit is reached, which will probably be soon 🫠 )
- 25 % in the $EQAC (-0,29%) (Invesco EQQQ NASDAQ-100 ETF, accumulating)
- 10 % in $EWG2 (-0,23%) (EUWAX Gold II, accumulating)
- 7,5 % in $EIMI (+0,3%) (iShares Core MSCI EM IMI ETF, accumulating)
- 7,5 % in $QDV5 (-1,39%) (iShares MSCI India ETF, accumulating)
In addition, my wife saves monthly in the $SPYI (-0,64%) (SPDR MSCI ACWI IMI ETF, accumulating) with 155.00 EURto build up reserves for her private health insurance when she retires.
In addition, some of our money flows into call money accounts as an emergency reserve, and there is also an amount in the $XEON (+0,01%) (Xtrackers II Overnight Rate Swap ETF C).
Now we are considering in which accumulating ETF we should invest the 16,500 euros and the future savings installment should be invested in. I would like to keep it as a separate or new position in one of the custody accounts, as the money will be invested in 17 years - after the fixed interest rate expires - to (partially) pay off the real estate loan. I'm also a fan of having different pots for different occasions. Each month I expect to have 250 to 500 euros in addition to the 16,500 euros.
Which accumulating ETF would be your favorite under these conditions?
Or simply, in one of our existing custody accounts additionally $SPYI (-0,64%) (SPDR MSCI ACWI IMI ETF) separately from my wife's savings plan, as a separate pot, because it's already a good ETF anyway?
I look forward to your opinion!
