Hello getquin community! 👋
Savings plans are an excellent way to build up assets automatically over the long term. Today I would like to introduce you to three well-known approaches and a less common but interesting alternative:
1. 70/30 - The classic
Here you invest 70% of your money in the MSCI World ETF (industrialized countries) and 30% in the MSCI Emerging Markets ETF (emerging markets). The idea behind this: Industrialized countries offer stability, while emerging markets offer growth potential.
2. 50/30/20 - More diversification with a focus on Europe
This allocation consists of 50 % MSCI World, 30 % Emerging Markets and 20 % in the MSCI Europe ETF (or a European small-cap ETF). It offers a greater weighting of Europe and more diversification.
3 ACWI - Keep it simple
The MSCI ACWI ETF combines around 2,900 companies from 23 industrialized countries and 24 emerging markets. This means you can invest in around 85% of global market capitalization with just one ETF. Ideal for anyone who likes things to be uncomplicated.
4. equal weight portfolio - all on an equal footing
Instead of weighting companies according to market capitalization (as is the case with most ETFs), an equal-weight portfolio distributes the investment evenly across all the companies it contains.
Why is this interesting?
-DiversificationSmaller companies also receive the same weighting as large players (e.g. Apple or Microsoft).
-OpportunitiesMedium-sized and smaller companies often grow faster than established groups and thus make a greater contribution to performance.
-Stability: There is less dependence on individual, disproportionately weighted companies.
Example: An equal-weight S&P 500 ETF $XDEW (+0,16%) weights all 500 companies in the index equally, regardless of their market capitalization. This gives smaller companies a fair chance to contribute to performance.
My conclusion:
Each strategy has its pros and cons, and the choice depends on your goals and risk appetite.
Which of these strategies do you use? Or do you have a different preferred allocation? Share your experiences! 💬👇
