actually fits very well into my multifactor portfolio. Of course I didn't buy it myself, it seems to be a promotion from the new broker I brought on board for Epi's 3x GTa4-Ramba Zamba certificate. But a single share of this (is that what ETFs are called?) suits me, I think.

Good evening,

I would like to invest a five-figure sum for my parents.

The plan was to invest in an ETF for 3-5 years, which is accumulating and has medium to low risk

Not so long ago, I came across the Kommer ETF $GERD (-3,83%) in an article.

Now the question is, are the costs in relation to the risk, at 0.5% they are no bargain ?!

The other option would be a portfolio with several ETFs.

An MSCI World with associated EM would not be the favorite, at least not in the classic style.

Thank you very much👍

LG Mark

Dear community,

I have been a member of getquin for almost 2 months now and I am thrilled with how lively the discussions and contributions are. Thanks to everyone who takes the time to research certain topics and share their knowledge.

I would like to take the opportunity to briefly introduce my portfolio and share my thoughts for 2025.

I have been managing my own investments for 10 years now. I started with ETFs and got into cryptos in 2017 (and got out again after the FTX bankruptcy and the Terra Luna crash). And for a few years now I've also been trading shares and now also real assets (I'm currently testing Timeless). Over the years, I have been able to expand my portfolio.

Due to my family responsibilities, my monthly fixed savings rate is currently €500. I also park monthly surpluses in my call money account and invest them when I see an opportunity. I need a certain amount of cash as we are still renovating and therefore simply need some cash...

My goal is to have at least €500,000 in 10 years so that I can pay off the existing loans on our house. So I would need to generate an annual return of 15%...

Over time, I've built up quite a mix of shares. My credo so far has been not to invest more than €1000 per share (although there have been exceptions) and a stop-loss at 20% below the purchase price. I haven't decided when the best time to sell is and I still don't know which strategy is best for me. I would therefore describe myself more as a hodler...

Now to my plans for 2025.

- I will change the fixed value per share of €1000 and increase it to €5000.

- The stop loss remains in place.

- Keep savings rates at €500 for the time being.

- Reduce the number of shares

- Focus on growth

What could a savings plan look like that I would continue for the next few years?

One point that bothers me is the high proportion of US equities in the global ETFs (cluster risk) - even though this is where most returns have been made historically...

Hence my consideration:

- Save in an ETF with a lower or no USA share (I currently have the following in my portfolio $GERD (-3,83%) where the USA share is only 50% - unfortunately quite expensive with TER 0.5%; or a new start with a $EXUS (-2,64%) ) (share: 40%)

- Saving $MEUD (-2,97%) (20 %), $FLXI (-0,92%) (20%), $WSML (-5,23%) (20%)

- S&P500 or MSCI USA via the 2xSPYTIPS of @Epi (via single payments)

- In addition $BTC (+0,73%) Savings plan of 40€ / week from existing USDC holdings (LTC sales from December) Note: Crypto portfolio cannot be fully mapped in Getquin as the EARN Binance Wallet is not displayed.

What do you think? Does that make sense?

As a next step, am I considering divesting from stocks?

From $OBDC (-3,33%) I would probably divest myself, possibly also $CSCO (-8,82%) . Can you think of any other shares or ETFs that would make sense to sell due to low growth prospects? I would then invest the free money in 3xGtaaa and shares like $ASML (-7,33%) , $NVDA (-6,05%) ...

Overall, I'm still not sure whether my strategy is quite right. Do you have any ideas, suggestions or comments? I would be grateful for any advice.

Thank you and best regards

Disclaimer: No investment advice or recommendation, this article is for information purposes only. Before you decide on an ETF, take a closer look at it in terms of positions, sampling, regions, etc. I can't describe everything here as it would go beyond the scope of this article.

Part 1 (Definition, Categories

& Z-score and quality factor): https://getqu.in/RCSY4a/

Part 2 (Value ETF): https://getqu.in/Nfnhqb/

Part 3 (Low Volatility ETF): https://getqu.in/Ub7KpG/

Part 4 (Momentum ETF): https://getqu.in/CNMgGw

Part 5 (Small- and Growth ETF): https://getqu.in/0NoqmW/

Part 6 (Dividend ETF): https://getqu.in/NJtoF5/

What are multi-factor ETFs?

As the name suggests, multi-factor ETFs contain several tilts and are therefore not pure plays on certain factors. The theoretical foundation here is also the CAPM/French Fama model, according to which the expected stock return is expressed by premiums: Volatility, Size & Value. Multi-factor ETFs use several of these factors to outperform their respective parent index (or to achieve low risk). By combining different factors, this form of ETF is more active than the smart beta factors previously considered.

Historical returns

It is not really possible to say whether outperformance can really be achieved due to the limited data currently available. Many of these ETFs have only been around for a few years. A comprehensive study of multi-factor ETFs to date concludes that multi-factor ETFs have underperformed both the US and global markets (while down-side protection paints a mixed picture). Study:

https://pmc.ncbi.nlm.nih.gov/articles/PMC10225753/

However, in my opinion, no general conclusion can be drawn here, as we have already seen in previous parts that the individual factors such as size, volatility and dividends have underperformed in the recent past. It is therefore only logical that the multi-factor approach has also underperformed in the recent past.

👉Multifactor-ETFs:

$HWWA (-4,59%) (World | TER 0.25 % | TD n.A. | 1.3 bn Invested Vol. | 3Y underperformance vs. All-World -0.2% ppt. | 5Y underperformance -0.2%pt. | 10Y underperformance -14 %pt.)

Index methodology: Relevant stocks are identified from the parent index (MSCI All Country World Index) using the following factor weightings:

(1) Value: low kgv/kbv , high dividend yield is preferred

(2) Quality: stable earnings high return on equity

(3) Momentum: shares that have shown above-average price performance in the recent past are preferred

(4) Low risk: stocks with lower volatility than the overall market are preferred

(5) Size: Smaller companies (small caps) with potential for above-average growth are preferred.

• The fund may invest up to 10% of its assets in derivatives such as total return swaps and contracts for difference.

$IBCZ (-4,55%) (World | TER 0.50 % | TD 0.31 %.| EUR 0.5 bn invested. | 3Y underperformance vs. All-World - 4%pt. | 5Y underperformance - 11 %pt | 10Y underperformance - 34%pt.)

• Index methodology: Focus on Value, Momentum, Quality & Size (Small Cap). The aim is to achieve a similar risk profile to the All-World. The factors are weighted and risk rated using MSCI's "Barra Equity Model". This uses over 40 data metrics for each share and provides a value-at-risk figure for each share, among other things. The focus factors are used to determine a weighting for the positions, which are then adjusted on the basis of risk measures, e.g. country and sector weightings may not deviate from the starting index by more than 5%.

$GERD (-3,83%) (World | TER 0.5 % | TD n.a. | 0.4 bn invested vol. | 1Y underperformance vs. All-World -5%pt.)

• Index methodology: Gerd Kommer's index should not be omitted here for reasons of respect for his performance alone. In addition to size, momentum, value & quality, country weightings of 50% by GDP and 50% by market capitalization are also applied here, as well as minor gimmicks such as the exclusion of stocks around the IPO period and in the case of high short interest. Dedicated analysis: https://www.youtube.com/watch?v=3IWp5OHn4Ps

$FEX (US | TER 0.65 % | TD n.a. | EUR 0.2 bn invested volume | 3Y underperformance vs. S&P 500 - 13 %pt. | 5Y underperformance - 30 %pt. | 10Y underperformance vs. S&P 500 - 134 %pt.)

• Index Methodology: Mix of growth and value factors. Growth factors: Momentum (3, 6 & 12 month price increases), sales multiple, 1 year sales growth. Value factors: Price to book ratio, cash flow to price ratio, return on equity. Valuation of shares from the parent index (Nasdaq US Large Cap 500) based on these factors, allocation & weighting according to quintiles, top quintile approx. 33% weighting, 2nd quintile 27%, etc. Quarterly reweighting

$IBC0 (-2,23%) (Europe | TER 0.45 % | TD 0.22 % | EUR 0.2 bn invest vol. | 3Y outperformance vs. EuroStoxx 600 + 2%pt. | 5Y outperformance + 6 %pt. | 10Y outperformance + 8 %pt.)

• Index methodology: the "Barra Equity Model" is used to select a factor from the parent index (MSCI Europe Index for large and mid-caps) via the factors: value, momentum, quality

Conclusion - what remains?

Multi-factor ETFs try to achieve an edge over the parent index by combining various factors, true to the motto: a lot helps a lot, the shares are screened according to various factors such as size, value, momentum etc. in order to achieve a higher return with the same or lower quality with this "egg-laying wool-milk sow". However, precisely this complexity can also be a disadvantage, as screening according to many factors can mean that some factors influence each other and are therefore not as highly weighted in the index.

Unfortunately, the data is not yet sufficient to make a statement about the investment case of these multi-factor ETFs, but the short-term returns over the past 10 years have lagged behind those of the parent indices (as the individual factors have often performed worse).

#smartbeta
#multifactor
#etf

$GERD (-3,83%)

Hello everyone, what do you think of the Gerd Kommer ETF? Would you invest in it? Do you think the TER of 0.5% is too high? And are there alternative ETFs that are so globally diversified and have such a balanced weighting?

The $GERD (-3,83%) still has to go into the deep dive!

Guys, you might have the coolest portfolio in the world, with which you have already made 40% YTD. But to me, today $GERD (-3,83%)
$K0MR (-3,74%) a heart today:

$GERD (-3,83%) It's a shame that most of the commentators here don't understand the ETF at all, and therefore don't have the necessary patience of at least 10-15 years - and the coolness to simply sit out interim drawdowns and stock market crises stoically.

After a few individual investments and rather ill-considered purchases, I have finally made up my mind, savings plans which I simply run alongside my individual purchases.

I currently save every two weeks:

$SPXS (-4,45%) with 50 €

I will be saving in this ETF for a very long time, as the investment horizon here is >15 years. As this is often used as a benchmark for many portfolio performances, it can't be wrong if you want to pursue a core-satellite strategy later on.

$HPRO (-3,64%) with 50 €

I believe that the higher prime rate is currently a good opportunity to enter the real estate market and to keep it as a portfolio component in order to gain a little more weighting in this sector. It's also the only distributing ETF, which takes away the advantage of the tax deferral effect, but I find the payouts very motivating :D .

$GERD (-3,83%) with 25 €

A bet with a short-term investment horizon. Many positions are doubled here, but the overweighting is intentional.

What do you think of my strategy?

Hello everyone,

what do you think of the Gerd Kommer ETF

IE0001UQQ933 $GERD (-3,83%) ?

I wanted to invest the risk part of my portfolio here but I'm not quite sure😬

I am actually a fan of his theories and think the ETF is solid. However, I find it questionable that an ETF is being set up here (with currently little total capital) in the name of one person. What happens if Mr. Kommer is no longer around in 50 years?

Will the ETF fall or be taken over by an institution? Will the index continue to be adjusted?

What do you think?