2G·

Investment savings contracts or all-in or a mixture

Hello everyone,

I'm thinking of investing a bit over 15k in the near future, but I'm not sure what makes the most sense.

The starting position is as follows:

Monthly savings plan runs to

Weekly

Now my consideration:

1 - All In in all three ETF's at 1/3 each.

2 - invest 20% directly in each ETF and increase the monthly savings plans to weekly with the same savings rate as before, so that I can buy more in the event of a price drop.

3 - Simply adjust the savings plans weekly so that the sum is used up after a year and then return to the monthly savings rates at the current time.

What do you think makes the most sense? Perhaps also with a short explanation of why you think this.

Thank you and have a nice Sunday.

Carsten

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Update and resolution :

Thanks for the comments and food for thought.

I will pursue the following strategy:

$IWDA (+0,3%) 4000,-

$TDIV (+0,9%) 4000,-

$SGBS (-1,07%) 2000,-

As direct investments

The savings rates are switched to weekly and are then spread as follows, with all ETFs being used equally.

Weekly 300,- until the end of November.

Each ETF will therefore be served with 100 euros per week until the beginning of December.

Then the savings rate will fall back to the previous level of EUR 160 per month per ETF.

If there is another price drop, I can change the strategy and then buy more with what is available at the time.

I think I can sleep well with that.

Thank you very much for your input.

Carsten

13 Commenti

Hau I@Haui

Theoretically, everyone will probably tell you that "time in the market" beats "timing the market", which would argue in favor of investing everything directly. However, as it is usually more relaxed psychologically if not everything is invested straight away, I would personally invest a portion directly and let the rest run via a savings plan. Especially as we are currently relatively high up in many indices. In the end, however, it's probably a matter of taste.

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Philip Buß@GoldenShield

@Haui That's how I started for myself. If you look at it purely mathematically, you might lose a few % in returns, but that's not so important in the long term. Much more valuable for me was the experience of investing regularly and having a budget etc. and getting into a routine with it
Perhaps a small tip: I have switched my savings plans to weekly instead of monthly, because in my view this reduces the likelihood of investing at the wrong time or the sums you invest per individual savings plan become smaller

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Golden Boy@randomdude

I invested a large amount for our children in the FTSE All World with one-off purchases at the beginning of February. Since then, I would advise you to go for option 2 or 3 😅

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Epi@Epi

Perhaps this is an opportunity to think about currency-hedged ETFs?

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Carsten@Carsten1970

@Epi I have no idea what they are. I have worked my way through various ETF pages and have come to "my" three ETFs. I can't even read the word properly.
Let alone know what they are

Carsten

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Epi@Epi

@Carsten1970 I am referring to ETFs that correspond exactly to the ones you suggested, but which have a currency hedge against a USD devaluation.
Z. For example, $XAD1 also rises when gold rises, mainly due to a falling USD. $EWG2 does not do this.

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Carsten@Carsten1970

@Epi I've had a look and still don't understand the difference.

$XAD1 5 years 65.41% - costs 0.59
$SGBS 5 years 77.43% - costs 0.15%

the $XAD1 has less performance and costs more in TER.

That's probably why I'm on the wrong end of the stick and can't figure it out

Carsten

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Epi@Epi

@Carsten1970 The poorer performance of the hedged ETC is due to the rising USD in recent years. Look at the YTD performance in comparison, then you will understand what you are spending the 0.44%pa on.

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Carsten@Carsten1970

@Epi The dollar has been falling massively against the euro since 2022. Which is good for me. I get more dollars for fewer euros.
I'm probably just not deep enough in the subject to understand that.
I don't deal with conversions from dollars to euros or yen. I buy for euros and sell for euros.
That's why it's beyond my horizon. All I know is that my gold ETF performs better and costs less.
And I think it's a psychological effect, if I start converting dollars to euros every day and then I won't get anywhere.
and I would have to evaluate every ETF on currencies at the current time.
Carsten

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Epi@Epi

@Carsten1970 Of course, it's entirely up to you what you do with your money.
But looking at the currencies makes a potential difference of 15% YTD in the S&P500 ETF in 2025 alone. Doesn't matter? Maybe. Not to me.

And if you have gold and plan to sell it at some point for a profit, you should at least know that the price of gold typically rises when the USD depreciates. It's just stupid if you bet on rising gold prices, gold also makes +30% in USD, but -10% in EUR. It's all happened before.

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Carsten@Carsten1970

@Epi What can I say now? I don't understand it. Because it's beyond me.
I buy for euros and sell for euros.
If I understood all this and could put it into practice, I would probably soon be very rich.
Since I don't understand it, I'll stick with my 3 ETFs at least until I do.

Euro gets stronger, stock market runs in dollars, strong euro = more shares in dollars.

That's my logic.
Someone would probably have to explain this to me in person over a Gin Mare for me to understand it.

Carsten

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Epi@Epi

@Carsten1970 Okay. Maybe it works in a simpler way:

Euro gets stronger = dollar exchange gets weaker = more shares in dollars today; Euro gets even stronger = dollar exchange gets even weaker = shares in dollars become worth even less etc. until perhaps at some point Euro gets weaker again. Then the game turns around.

Alternative: Euro gets stronger = hedged dollar exchange gets stronger = shares become worth more; euro gets weaker again at some point = unhedged dollar exchange gets stronger, i.e. the rebalancer always wins.

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Super_Geroy@Super_Geroy

Not option 1, as this takes away your opportunity to buy cheaply in the event of a crash in the next few months or to enter a new share. (As you yourself wrote under 2.)

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