Hello dear community,

Recently my portfolio and its logic was presented in an article by Business Insider and analyzed by Konrad Kleinfeld from SPDR. There was some exciting feedback, but of course I would also like to activate your swarm intelligence and get your feedback 🙂

First of all: Although I am pursuing a core-satellite strategy, the "satellite" does not aim to outperform, but is simply for fun and offers room for investments that do not fit into the logic of the core. The satellite consists largely of ETFs (e.g. in commodities, real estate, private equity, REITs, etc.), but only accounts for <10% of the overall portfolio and is not included here.

My goal is broad diversification that goes beyond a pure market capitalization-based index as well as long-term returns.

In doing so, I rely on a rule-based approach and diversify along factors based on the selection criteria of the indices. As I deliberately do not want to make any sector or regional bets in the "core", but instead focus purely on the selection criteria of the indices, the relatively significant dividend block serves to reduce the US lump, as high-dividend companies are more frequently found in Europe.

Since the portfolio is quite granular, the portfolio overview function would be very confusing, so I hope it is easy to understand in text form:

1. MSCI World Block (40%):

$SPPW (-0,53%) MSCI World (10%)

$XDEM (-1,03%) MSCI World Momentum (10%)

$XDEQ (-1,09%) MSCI World Quality (10%)

$XDEV (-0,68%) MSCI World Value (5%)

$WSML (-1,32%) MSCI World Small Cap (5%)

Momentum, Quality and Size in the sense of the "normal", market-capitalized MSCI World are weighted slightly higher, as they have historically performed better and should logically perform better in a long-term positive market environment.

2. emerging markets block (20%):

$SPYM (+0,38%) MSCI Emerging Markets (6.67%)

$SPYX (-0,24%) MSCI Emerging Markets Small Cap (6.67%)

$5MVL (+0,04%) MSCI Emerging Markets Value (6.67%)

⚠ There are currently no ETFs on the MSCI EM Quality and MSCI EM Momentum indices that are available in UCITS form and tradable in Europe. Therefore, the logic of the EM block does not yet exactly reflect the structure of the World block. As soon as these ETFs are available, the block will be adjusted accordingly. Consequently, the "normal" MSCI EM as well as the value factor and small caps are currently equally weighted here.

3rd Dividend block (30%):

$VHYL (-0,58%) FTSE All-World High Dividend Yield (5%)

$TDIV (-0,63%) Developed Markets Dividend Leaders (10%)

$ISPA (-0,51%) Global Select Dividend 100 (10%)

$ZPRG (-0,17%) S&P Global Dividend Aristocrats (5%)

As mentioned, this block serves 1) to reduce the US lump, is also distributing and thus provides cash flow, which 2) is used for rebalancing at the end of the year (so I don't have to spend any additional capital on this, which has a psychological effect for me) and 3) the monthly distributions motivate me to continue investing intensively. In addition, 4) the tax-free allowance is utilized without having to actively sell shares in the other "blocks". The top 10 holdings of the individual ETFs differ greatly here despite the common denominator of "high yield". However, the financial sector is a large lump. The weighting here is derived from the high yield and diversification in the sense of complementing the other "blocks" (i.e. little tech and little US).

4. hedge bonds (10%):

$IBCI (+0,36%) Euro Inflation Linked Government Bond (10%)

My equity allocation is (roughly) based on the rule "120 minus age", so 10% is currently left for bonds. The purpose of a bond block in the portfolio is stabilization and further diversification. With shares, I give a company capital, i.e. I become a stakeholder in the company. Corporate bonds have the same logic, because here I am also giving capital to companies. That's why I opted for government bonds in the eurozone. TIPS have performed comparatively well here in the past and the logic of inflation-linked interest rates also appeals to me.

📈 Additional considerations:

1. i deliberately do without the "Low / Min Volatility" factor, as i assume a rising market in the long term and would like to participate more in the positive phases instead of reducing the vola.

2) I don't see overlaps between ETFs as a problem, but rather as a deliberate overweighting of companies that fulfill several criteria at the same time. Of course, many companies currently overlap in the classic MSCI World and the Quality and Momentum variants. However, the selection criteria are different and as soon as a company no longer meets the quality criteria, for example, it automatically drops out of the index and the weighting is reduced without me having to actively do anything about it.

3) I have actively decided not to invest in a multi-factor ETF because I want to have transparent control over the allocation of the individual factors and many of the factor ETFs available combine the selection criteria underlying the individual factors in such a way that the corresponding product would have performed well in the past, which of course represents a hindsight bias and does not necessarily correlate with future performance.

💡 To those of you who have read this far:

First of all, thank you for your time! The portfolio is intended to dynamically reflect a section of the market that could develop positively in a diversified manner based on the different selection criteria of the indices, without taking bets on specific sectors or regions. What do you think of the allocation and the strategy? Do you see any room for improvement or things you would do differently?

Thanks for reading, showing interest and thinking along. 😊

#etfs
#portfolio
#portfoliocheck

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 (-0,28%) , $O (+1,37%) ,$TSM (-0,58%)
$ADM (+4,11%)
$UMI (+1,76%)
$D05 (+0,91%)
$BMW (-0,12%)
$UKW (-0,76%)
$8031 (-0,64%)
$MUV2 (-0,6%)

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 (+1,37%) ).

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 (-1,03%) 30.3% (MSCI World Momentum)

$XDEB (-0,35%) 10.1% (MSCI World Minimum Volatility)

$XDEV (-0,68%) 10.1% (MSCI World Value)

$ZPRV (-1,97%) 15% (MSCI USA Small Cap Value Weighted)

$ZPRX (+0,2%) 6.5% (MSCI Europe Small Cap Value Weighted)

$PEH (+0,69%) 4.5% (as a quality factor on emerging markets)

$5MVL (+0,04%) 4.5% (Edge MSCI EM Value)

$SPYX (-0,24%) 9% (MSCI EM Small Cap)

Gold

$EWG2 (+0%) 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.

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 (-1,03%)

25% $FVSJ (+0,64%)

10% $WSML (-1,32%)

10% $C6E (+0,35%)

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

$BTC (+0,14%)

$ETH (+0,47%)

$SOL (-3,17%)

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 (-1,03%) for example.

$XDEM (-1,03%) 📈🌍 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!

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 (-4,22%)
$SLI (-3,65%) ) 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 (+1,37%) and $BATS (-1,84%) 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 (-1,03%)

Various individual stocks fly around it.

$UBER (-2,45%) and $NU (-11,11%) 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 (+1,04%) and $MELI (-4,31%)

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. :)

Hey friends of outperformance!

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

60% $VWRL (-0,91%)

20% $XDEM (-1,03%)

10% $XAIX (-2,35%)

10% $IPRA (-1,29%)

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 (-0,91%) 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