Xtrackers MSCI World Momentum ETF

ETF

ISIN: IE00BL25JP72

Ticker: XDEM

IE00BL25JP72

XDEM

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Uwe

@SchlaubiSchlumpf

4D·

My Rewind 2024 - Getquin wrapped

Preface:

In the following, I would like to present how my portfolio has developed over the course of 2024.

This includes

1) my strategic orientation

2)Return on the portfolio.

The main topics are:

Moving away from individual stocks
Entry into gold and bitcoin
Factor investing

Finally, I will give my own thoughts on how to proceed.

The main changes to my portfolio that have led

to my current strategy are presented below using a short timeline.

timeline:

My timeline

Beginning of 2024

At the beginning of the year, I pursued a 70/30 core satellite

strategy. The 70% ETF core again consisted of STOXX Europe.

MSCI World, Emerging Markets.

The 30% consisted of stocks such as: $CSIQ (-0,32%) , $O (+0,46%) ,$TSM (+1,24%)
$ADM (+0,92%)
$UMI (-0,63%)
$D05 (-0,68%)
$BMW (-1,03%)
$UKW (-0,33%)
$8031 (-3,32%)
$MUV2 (-2,39%)

February

Addition of gold to my portfolio. Target size 10%. Build-up in batches.

The remaining 70/30 strategy therefore only relates to the remaining

90%.

April-June:

Entry into Bitcoin via Trade Republic in several batches

at prices between 50k and 63k.

After exchange with @Epi to the fee schedule at Trade Republic

I sold them there in order to sell Bitcoin on a dedicated crypto exchange.

exchange.

June:

Thanks to @PowerWordChill I got to grips with factor investing. A Gerd Kommer book later, and after some internet research, I decided to

decided to transform my ETF strategy into a factor ETF strategy.

July-August 2024:

Sale of my shares. Concentration on the factor portfolio.

August - September 24:

Renewed build-up of Bitcoin with the aim of making Bitcoin a

a fixed component of the portfolio. Consideration is 5%-10%

of my portfolio.

The idea. Build up an initial position, then make regular

investments of €50 per week with the aim of growing to the target size

to grow to the target size. The rapid rise in October/November led me to

led me to leave it at €50 per week. And individual purchases in

larger tranches at an early stage with a portfolio size of 2.x%.

End of December 2024:

Position size of Bitcoin almost 5%.

I am not yet including Bitcoin in my gold/ETF quota. I'm still running it on the side.

I re-evaluated my factor weighting at the end of the year

and would like to fine-tune it a little. I will briefly present the result in the

following section.

In addition, I have decided to include a small

include a small proportion of real estate stocks. However, this will probably never

part of my strategy worth mentioning and contains - as of today - only

about 3% of my portfolio and only $O (+0,46%) ).

Overall breakdown of my portfolio:

As described above, I do not yet include Bitcoin in my overall strategy

part of my overall strategy so that rebalancing remains easier. This will

change when Bitcoin reaches its target size.

The rest is made up as follows:

ETFs:

$XDEM (-0,02%) 30.3% (MSCI World Momentum)

$XDEB (+0,21%) 10.1% (MSCI World Minimum Volatility)

$XDEV (-0,24%) 10.1% (MSCI World Value)

$ZPRV (+0,02%) 15% (MSCI USA Small Cap Value Weighted)

$ZPRX (-0,32%) 6.5% (MSCI Europe Small Cap Value Weighted)

$PEH (+0,09%) 4.5% (as a quality factor on emerging markets)

$5MVL (+0,16%) 4.5% (Edge MSCI EM Value)

$SPYX (-0,56%) 9% (MSCI EM Small Cap)

Gold

$EWG2 (+0,51%) 10% Gold ETC

Getquin Rewind and own data:

At the end of the post you will find my Getquin Rewind, as I was not able to embed the image in the text:

However, according to my own calculations, this cannot be correct.

My portfolio volume at the start of the year was around €103,500 with a return of €16,693. This would correspond to a total return of 19.2%. However, we are not yet talking about a time-weighted return, as my invested capital has roughly doubled over the course of the year. I therefore estimate my TTWROR to be higher.

My own thoughts and outlook:

I do not expect any major changes in strategy over the next few years. At some point, a strategy will have to be established. If necessary, I will make some adjustments to this strategy.

This includes the fact that I am dissatisfied with the costs of the emerging markets factor ETFs. So far, however, I intend to live with it. Should I

stumble across better products, I will consider switching. Especially as long as I stay within the tax allowance when switching.

I'll also have to decide how big my Bitcoin holding should ultimately be.

If you've been reading carefully, you'll notice that a lot of money has accumulated in the last year. Big profits, big investments. Due to personal circumstances, I will not maintain these rates in the same style, but will reduce them somewhat. I expect to be able to continue investing around 1.5-2k per month. This means that my financial goals are

with an expected return of 5% adjusted for inflation over many years.

I am half hoping for major setbacks in the near future and the associated favorable entries. However, in view of the impact that minor price jolts have had on society as a whole (thanks to populism), I don't really wish for them.

Do you have any suggestions, questions or comments? Is there anything that particularly interests you?

I am also happy to receive suggestions for improvement for future posts.

Best regards,

Your Smurf

PS: @DonkeyInvestor and me, that's love ❤. And now send me your coins! (So I can reward your next post appropriately).

PPS: I hope someone is interested.

21 Comentários

Christian@christian

Thank you for the detailed introduction :)

•

Douglas

@Douglasferreira

2Mês·

Hello, my Birthday is today and im turning 18 years old. Now I have the independence and support of my parents to invest.

I'm an 18-year-old Brazilian just beginning my investing journey, and I'd like to share my investment strategy for feedback from more experienced investors. I recently moved to Saudi Arabia, where I’m awaiting my iqama (residency permit). My father has one, and he’s handling the application for mine. I live under my parents’ tax forum, and they currently handle any tax obligations. With 1,000 euros ready to invest, I’m excited to build a portfolio with a balanced approach to growth and risk, starting with ETFs and, over time, branching out to include individual stocks and crypto.

Initial Investment Strategy

My primary goal is to create a foundational portfolio entirely focused on ETFs until I reach a portfolio size of 5,000 euros. Here’s the breakdown of my initial plan:

1. 50% IWDA $IWDA (-0,01%) (iShares MSCI World ETF): I’m allocating half of my starting capital to the IWDA ETF to establish a core of diversified global exposure. The IWDA covers large- and mid-cap companies in developed markets, giving me solid coverage across sectors and geographies.

2. 25% $XDEM (-0,02%) MSCI World Momentum ETF: I’m dedicating a quarter of my portfolio to the MSCI World Momentum ETF. My goal here is to capitalize on stocks that are currently outperforming in the global market, with the understanding that momentum strategies can offer higher returns (though with greater volatility). I want this portion to add a growth element to my portfolio.

3. 25% $XDEQ (-0,03%) MSCI World Quality ETF: I’m putting the remaining quarter into the MSCI World Quality ETF to provide balance. The Quality ETF focuses on stable, financially strong companies with high returns on equity, low debt, and stable earnings growth. I see this as a stabilizing element to counterbalance the volatility of the Momentum ETF.

Monthly Contributions and Cash Reserve Strategy

My dad will be giving me $150 each month, and I plan to divide this as follows:

- $100 per month into the ETF portfolio: This consistent investment will go towards expanding my ETF positions and growing my portfolio gradually over time.

- $50 into a liquid cash interest account: I’ll use this account as a cash reserve that’s easily accessible, enabling me to buy into individual stocks when they appear undervalued or experience significant dips. This approach lets me take advantage of market corrections and buy solid assets at better prices, adding a tactical layer to my strategy.

Long-Term Portfolio Allocation Goals

Once I hit $5,000 in my ETF portfolio, I’ll shift focus to incorporate individual stocks, with the goal of making them around 45% of my total allocation. Here’s my intended breakdown for this part of the portfolio:

1. 25% “Strong” Companies: This portion would go to large, well-established companies that generate significant cash flow. I’m particularly interested in the Magnificent 7, as these tech giants have strong fundamentals and an impressive cash flow, even though they come with valuation risks. I see them as a solid foundation for long-term growth.

2. 25% Quality Dividend Growth Stocks: I want a portion of my stock allocation to focus on high-quality, dividend-paying stocks, particularly those that have been overlooked or undervalued. This segment is intended for income and stability, with the aim of reinvesting dividends to take advantage of compounding over time.

3. 25% Value Stocks: For this segment, I’ll look for undervalued stocks that have solid fundamentals but may be trading below their intrinsic value. This is a more opportunistic approach that lets me capitalize on underpriced assets for potential upside.

4. 25% High-Growth Stocks: Finally, I plan to reserve a portion for high-growth stocks with strong upside potential. This is the riskiest portion of my stock allocation, focusing on companies in fast-growing sectors or those with strong innovation prospects.

In addition, I plan to introduce crypto as a small allocation—around 5% of my overall portfolio—to capture any high-growth potential. I recognize the volatility and risk associated with crypto, so I’m keeping this exposure small and will prioritize established coins with strong fundamentals.

Risk Management and Future Adjustments

Given my age and a long investment horizon, I’m comfortable taking on higher risks in this early stage. I’m looking for growth opportunities and am willing to accept market volatility as part of the process. However, I recognize the importance of a gradual shift toward stability, and I plan to adjust my portfolio composition as I age and my financial needs evolve.

By the time I reach my mid-30s, I intend to focus more on financial security and risk management, gradually adding defensive assets to the mix. This could mean increasing allocations in dividend-paying stocks, bonds, or even safer ETF options that emphasize preservation of capital. I also plan to establish an emergency fund to cover at least six months of living expenses, providing financial peace of mind and further stabilizing my overall financial position but this will happen once I move out of my parents house.

Seeking Feedback

I’m excited to start investing and am eager to hear if this strategy aligns well with my goals and circumstances. I’d love any suggestions on specific ETFs, stocks, or crypto that might be worth considering, or advice on adjustments I could make to further diversify or optimize my plan. Thanks in advance for your insights!

5 Comentários

Privatier@c05

2Mês

Happy birthday to you. Take a world ETF with 100 euros a month and that should be enough. Anything else is pointless.

•

marxil

@marxil

2Mês·

Hello dear Getquin Community,

I would like to share my portfolio with you as an update.

You are welcome to give your opinion or suggestions for improvement.

Briefly about me:

I am 19 years old, live in Austria, work in an apprenticeship as a design engineer and have a monthly savings rate of 51.60% and 32.25% I invest, which is a total of €500 as an investment.

I started investing in mid-January 2024.

At my last update 6 months ago, my portfolio was still about 2.4k euros.

Deposits:

Etf - Depot (Flatex)

55/25/10/10

55% $XDEM (-0,02%)

25% $FVSJ (-0,7%)

10% $WSML (+0,12%)

10% $C6E (+0,17%)

Crypto - Depot (Bitpanda)

I know that my crypto positions are somewhat high and risky.

But I can cope well with this risk 🤣

Nevertheless, I have given up my altcoin position and don't hold that much of it and the only ones I have now are

5 Comentários

2Mês

I see small caps + Europe etf as a drag on returns.

I would rather look to invest in novo, asml, lvmh, especially in Europe (which also have good prices at the moment)

•

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Alfred E.

@Papiertiger

4Mês·

Children's custody account - ETF 2x products as a return booster? Your opinion

The normal savings plan for the child runs with classic Ishares MSCI World & EM with 75%/25% allocation.

Next year there will be a grandiose 5€ more child benefit so I'll take out 25€.

I'm now thinking about adding a small yield booster (of course with higher risk + I realize that it is calculated daily and tends to go down a little more with minus movement than with plus).

25€ additional p.m. on : (so pi times thumb 300€ p.a. times ~15 years= 4.500€)

$CL2 (-0,06%) Amumbi 2X MSCI USA Daily (0.5% TER)

$LQQ (-0,12%) Amumbi 2X Nasdaq Daily (0.6% TER)

$DBPG (-0,03%) Xtracker S&P 500 2x Daily (0.6% TER)

or rather boring momentum

$XDEM (-0,02%) MSCI World Momentum (0.25% TER)

SOS incoming

20 Comentários

Rmann@Epi

4Mês

Perhaps you should take a closer look at this before deciding on a savings plan for leveraged ETFs rather than watching a Thomas video?
Example: 1. when investing in the 2xQQQ in 2000, it only caught up with the 1xQQQ in 2020. Before that it underperformed. 2. the psychological pressure of a 90% drawdown should not be underestimated! If there is only 1k left of 10k savings for the children, even mom gets nervous. Not selling then puts a strain on you and your relationship.

That's why leveraged ETFs should normally be flanked by a volume-reducing strategy. Otherwise it will backfire. The best way to do this is to read research.

•

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ElShib

@ElShib

5Mês·

$XDEM (-0,02%) Momentum ETFs are fun when the momentum repeats. We are probably on the verge of a Momentum Change. I wonder if on the next rebalance the fund Will reajust enough for the new upcoming momentum, that is what Will make any decision to either keep using it or not. From what I have read, I fear there might be a 6 month lag on a proper readjustment, lets wait and see.

1 Comentar

mvarcox@mvarcox

5Mês

I wonder the same, last cycle they were indeed a bit behind but caught up so quickly! I am thinking of adding a bit as well in 1-2 months to actively track the performance a bit

•

Nostradonkey💩

@DonkeyInvestor

6Mês·

World vs. world momentum

Facts, figures and data (as at 06/2024)

It is often claimed on getquin or by self-proclaimed finfluencers that the World Momentum strategy would beat a world index. The problem with this is that the claims are usually not substantiated. And when they are "substantiated", they usually compare an MSCI World ETF with an MSCI World Momentum ETF that has only been around for 10 years. And as we all know, 10 years on the stock market is too short a period for an appropriate comparison.

Although it would be so easy.

After all, the MSCI World Momentum Index was launched back in 1994. So there are good comparative values for the last 30 years, during which the index has been able to prove itself in many boom and crash phases (dot com bubble, financial crisis, corona). And they are also neatly prepared by MSCI itself [1].

Stop talking, I'm here for the numbers!

All right. Here are the average annual returns of the MSCI World Index and MSCI World Momentum Index over the last X years:

5 years, World: 13.31%, Momentum: 13.73%

10 years, World: 9.71%, Momentum: 12.26%

30 years, World: 8.32%, Momentum: 11.26%

I suck at math. Impress me with absolute numbers!

If you invested USD 10,000 in the MSCI World 30 years ago, today it has become USD 109,966.28. If you had opted for the MSCI World Momentum Index instead, you would now have USD 245,567.94 😳. More than twice as much.

That is indeed impressive. What's the catch? Gigantic risk?

The max drawdown for the world over the last 30 years is 57.46%, that of momentum 55.53%. The Sharpe ratio is 0.43 for the World and 0.59 for Momentum. You can find further comparative values at [1].

And now? Sell everything and switch to momentum?

As you know, historical data is no guarantee of future performance. Moreover, although 30 years is more than 10, it is still a relatively short comparison period. I would therefore not bet 100% on the World Momentum. Despite existing studies that claim that the momentum strategy would have beaten a world index even over the last 80 years.

However, I can very well imagine a World Momentum ETF as a satellite or even as a core with satellites.

And you?

Sources (the fact sheet is constantly updated, this article is not)

[1] https://www.msci.com/www/fact-sheet/msci-world-momentum-index/010603830

Want to know how the World Index compares to the World Quality Index? Then take a look here https://getqu.in/HhbBYl/

A comparison with the MSCI World Value Index and a summary of World vs Momentum vs Quality vs Value can be found here: https://getqu.in/TD3OT2/

The MSCI World Momentum Index is tracked, for example, by $XDEM (-0,02%) for example.

100

41 Comentários

Vanguardium LeviOsa 🥪@Stullen-Portfolio

6Mês

Great!
Great content, great writing. 👏

Röhl and Kramer also addressed this in one of the last EchtgeldTV programs (along with other factors) -> also quite informative.

Greetings
🥪

•

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Luis

@Luis-

6Mês·

$XDEM (-0,02%) 📈🌍 Why the MSCI World Momentum ETF is the best! 🌍📈

Hey community!

Have you ever wondered which ETF is the best for your portfolio? Let me introduce you to the MSCI World Momentum ETF and why it is unbeatable in my opinion!

Global diversificationThis ETF includes shares from various sectors and countries worldwide. You don't just invest in one market, but in many different ones, which spreads the risk.

Momentum strategyThis ETF focuses on shares that have shown above-average performance in the past. The principle: winners stay winners. By focusing on such shares, you can benefit from strong price rises.

Proven performanceHistorically, the momentum strategy has often outperformed the broad market. The figures speak for themselves - who wouldn't want to be on the winning side?

Easy accessThe MSCI World Momentum ETF offers a simple way to invest in a variety of top performers without having to constantly monitor the market and pick individual stocks.

Cost efficiencyETFs are known for their low costs compared to actively managed funds. So you save on fees and can keep more of your profits.

TransparencyYou always know exactly which stocks are being invested in, as the composition of the ETF is published regularly.

So, if you're looking for a way to boost your portfolio and benefit from the momentum of the world's best stocks, the MSCI World Momentum ETF is just the thing for you! 🚀

Do you have any questions or want to find out more? Write it in the comments!

7 Comentários

Nostradonkey💩@DonkeyInvestor

6Mês

I would be particularly interested in the proven performance you mentioned. Can you please link the historical data (ideally in comparison to an MSCI World)? Thank you.

•

Kimono

@Kimono_93

6Mês·

After reading along for quite a while now, I wanted to share my progress with you and perhaps get some feedback and a few opinions.

With the execution of the savings plans today, my main portfolio (I still have about 3/4 of the sum parked with BitPanda, but I think the interface sucks and therefore don't track it with GQ) has slipped over the 10k mark for the first time.

I'm very happy about that because it was quite a long way to get there. From various bad decisions ($PLUG (-0,33%)
$SLI (-0,91%) ) to consistently miserable entry points (during Corona AFTER the prices picked up again, Crypto in the middle of the last ATH,...) everything was actually there.

At the beginning of the year, I then decided to build up a dividend portfolio, had invested heavily in

$O (+0,46%) and $BATS (+0,28%) and immediately questioned everything again. In particular, what I actually wanted to achieve with the portfolio.

Looking at the performance of various World ETFs and the S&P500, I (hopefully) finally decided not to reinvent the wheel and stick to what works.

I then rebuilt my portfolio to its current state.

The two ETFs form the basis, supplemented by the $XDEM (-0,02%)

Various individual stocks fly around it.

$UBER (+0,68%) and $NU (+0,51%) are the last remnants from the beginnings two and a half years ago. I bought the rest relatively recently. As my aim here is to beat my benchmark ((YTD Performance World ETF + YTD Performance S&P500)/2), I sit down once a month and enter everything in a spreadsheet. I look at the monthly performance, the annual performance and the YTD performance. If an individual share is below my benchmark for two out of three values, I put it under observation. If this remains the case for three months in a row, I sort it out. I am curious to see where the journey will take me. Currently on the hit list are $8002 (-2,48%) and $MELI (+1,26%)

I would be delighted to hear from anyone who is doing something similar and how things are going.

Finally, the framework in which I am traveling: I am 31 years old and moved from Kiel to Vienna last year, where I am currently working as an intern to finally finish my studies. My savings rate is currently 750€ per month (250€ crypto, 500€ individual stocks and ETF) and I save all the positions in my portfolio with a savings plan. The savings rate is quite new and has fluctuated a lot in the past.

Thanks to everyone who has read this far and thank you for your feedback and suggestions.

Have a nice evening. :)

12 Comentários

6Mês

Why sell marubeni u mercadolibre? I would expand

•

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Thetrendisyourfriend

@Thetrendisyourfriend

6Mês·

Hey friends of outperformance!

I need your advice regarding a reorganization of my ETF portfolio:

60% $VWRL (-0,08%)

20% $XDEM (-0,02%)

10% $XAIX (-0,04%)

10% $IPRA (+0,43%)

About me: I am currently 19 years old and in my 2nd semester of economics. With the ETF allocation I hope to generate extra returns through sector bets, although I am aware of the increased risk. 100% $VWRL (-0,08%) would be too monotonous and low-risk for me at the moment. What do you think of the allocation and what would you change in your position?

Many thanks for any interaction <3

16 Comentários