Depot realignment

My ETF strategy: 3 ETFs as the core for long-term success

After a lot of thought, I have decided to make some changes. I have decided to split my monthly investments into three ETFs that offer a mix of growth, stability and income potential. From now on, I will invest €1000 per month in these three ETFs, with all dividends being automatically reinvested to maximize the compound interest effect.

Fidelity Global Quality Income $FGEQ (+0,13%)

This ETF focuses on high-quality companies worldwide that pay stable dividends. It provides regular income streams and is less volatile than growth stocks. As I am looking for solid passive income over the long term, this ETF is an important part of my portfolio. All dividends from this ETF are reinvested to further grow the capital.

VanEck Developed Markets Dividend $TDIV (-0,23%)

Similar to the Fidelity ETF, this one invests in high-dividend companies, but focuses on developed markets. The VanEck ETF helps me to diversify my portfolio even more broadly and ensures regular distributions, which are also reinvested. This allows me to use the dividends as a growth driver without them weighing on the portfolio.

Nasdaq 100 ETF $CSNDX (+0,67%)

The Nasdaq 100 is my growth driver. It invests in the largest technology and growth companies in the US, which gives me strong leverage to the technology and innovation sector. While the Nasdaq 100 is more volatile than the S&P 500, the potential returns from the tech sector can be very rewarding over the long term. Again, all dividends are automatically reinvested to further increase the growth rate.

My strategy

With this combination of dividend and growth ETFs, I am aiming for a balanced portfolio that offers both stable income and long-term growth. I focus on a long-term investment strategy that grows regularly with monthly investments of €1000. The automatic reinvestment of dividends is intended to maximize the compound interest effect and thus allow the portfolio to grow continuously over the years.

Asia and emerging markets via individual shares

As I want to invest specifically in the Asian and emerging markets, I plan to cover the corresponding proportion via individual shares. I want to focus on high-quality companies that are growing strongly in these regions and offer good long-term earnings opportunities. My favorites: $6861 (+0,26%)
$TKOMY
$1211 (+0,96%)
$FLXI (-0,07%)

Individual shares - focus on quality

I currently own a lot of individual shares (some bought without a plan) and plan to reduce these to a maximum of 20 strong quality shares. I want to consolidate my portfolio and only invest in companies that have high growth and earnings potential and are robust enough to perform well even in difficult market phases.

Conclusion:

With this strategy of the 3 ETFs as core and a careful selection of 20 strong individual stocks, I want to build a well-diversified portfolio that not only provides stable income, but also benefits from global growth in the long term. By regularly investing €1000 per month and reinvesting all dividends, I aim to continuously grow my portfolio and achieve long-term financial security.

I would be delighted to hear your thoughts on my new strategy!

Have a great evening and a successful start to the new week!

LG your Max

Kate🦋@Iwamoto

This is probably not the strongest strategy/plan. But any plan is better than none. I was just visiting my younger cousin and to use a meme, he actually has tears in his eyes 24/7 that there's not enough money and is afflicted by this bias of not being able to save. That's nonsense, of course. I recommended to him: The Richest Man in Babylon by G. C. Clarson as a first step and called a spade a spade: ETF savings plan, even with a small amount (time is leverage). He has probably forgotten it again and will never invest. Therefore, even a supposedly weak plan is a good plan. Weak is an exaggeration, but you know what I mean.

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KevinE@KevinE

@Iwamoto With your cousin, however, the problem doesn't seem to be strategy or a plan, but a lack of impulse control (when making purchases), a lack of will to save or simply too little income...

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@KevinE one way or another. That's why any plan is better than no plan.

NichtRelevant@NichtRelevant

16H

Sounds like a good plan. Good luck with it! 👍

Iwas M.@SSIT

The Xtrackers Nasdaq $XNAS is cheaper in terms of TER and has outperformed the others (ishares, invesco) by a my.
In the end it's a matter of taste. :)

Maximilian@Max095

@SSIT Thanks for the hint. :)

risk_minister_tscqr@risk_minister_tscqr

The $ANAV is even cheaper

K@TechNav

14H

I also have a 3 ETF core that always makes up over 75% of the portfolio

Stulle 🥪@Stullen-Portfolio

13H

First of all: the most important thing is that you are happy with your investment!

Now two notes: just like $TDIV, $FGEQ also only includes companies from industrialized nations. Nothing wrong with that, but you don't seem to have known it.

Secondly, the companies have reasons for paying a dividend or not paying a dividend. That only says something about the company as such or its quality to a limited extent. In your investment, you now go and exclude those companies from 2 of the 3 ETFs that pay no or little dividend. You can do this - but I wonder whether this is actually a clever criterion in the long term 🤷 Maybe you can ask yourself the same question...

Greetings
🥪

Susanne@Isus01010

I am currently going the other way round, from a pure ETF portfolio to an admixture of individual stocks. Good luck!

TaubeSmash@TaubeSmash

I have similar thoughts in my portfolio and a similar strategy. But remember that you should somehow get EM into your portfolio, albeit underweighted. I think this is where the biggest growth music will be played in the long term and it would be a shame if you were only on the sidelines.

Sebastian W.@Sebastian2000

Why did you opt for distributing ETFs in the first place if all dividends are automatically reinvested anyway? It really doesn't make any tax sense because you pay tax on the dividend and then reinvest the tax-reduced dividend. Or am I missing something?