Very informative. I already looked at your portfolio at the end of last year. I find it courageous, but unfortunately the strategy (3xGTAA) as well as the investment class (certificate) and on top of that Wikifolio and the high TER and the order costs are the sticking point, which is why I do not invest in your product.
All points are harmless on their own, but in combination they are inappropriate for me.
Nevertheless, I must praise you. After researching the largest wikifolios, I realized that if I wanted to invest in a wikifolio, your strategy + your positions + performance history would clearly appeal to me the most.
What do you see your certificate as? As a modern version of an actively managed fund? Or where do you classify it?
All points are harmless on their own, but in combination they are inappropriate for me.
Nevertheless, I must praise you. After researching the largest wikifolios, I realized that if I wanted to invest in a wikifolio, your strategy + your positions + performance history would clearly appeal to me the most.
What do you see your certificate as? As a modern version of an actively managed fund? Or where do you classify it?
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11
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8H
@Tacticus First of all, thank you for your frank words. I can understand that.
If you find the strategy interesting, you can simply replicate it in your own portfolio, with or without leverage. Anyone can. But Wikifolio is particularly interesting from a tax perspective. If that doesn't play a role for you yet, implementing it yourself is the cheapest option.
What do I see the certificate as? Probably not as an actively managed fund, because they usually depend on the direct decisions of the fund managers. This is not the case because of the clear rule base. Rather, it is a listed shell of a rule-based multi-asset momentum strategy. So somewhere between ETF, mixed and hedge funds. 🤷
If you find the strategy interesting, you can simply replicate it in your own portfolio, with or without leverage. Anyone can. But Wikifolio is particularly interesting from a tax perspective. If that doesn't play a role for you yet, implementing it yourself is the cheapest option.
What do I see the certificate as? Probably not as an actively managed fund, because they usually depend on the direct decisions of the fund managers. This is not the case because of the clear rule base. Rather, it is a listed shell of a rule-based multi-asset momentum strategy. So somewhere between ETF, mixed and hedge funds. 🤷
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•I see. In other words, since it is an exchange product, you are not allowed to change the rules you have set for the composition of this certificate at all or only to a limited extent?
Are you allowed to deregister your product from exchange trading or even liquidate it at any time?
Of course, I am primarily excluding allocation changes to existing positions from the above.
Are you allowed to deregister your product from exchange trading or even liquidate it at any time?
Of course, I am primarily excluding allocation changes to existing positions from the above.
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11
•6H
@Tacticus Correct. The rules of a wikifolio remain unchanged. It's hard to control, of course, but that's the idea behind the rule that you can't change your wikifolio description after publication.
And yes, I can request the closure of the wikifolio at any time. Then all holdings are sold and the certificate continues to run like cash until all holders have sold.
And yes, I can request the closure of the wikifolio at any time. Then all holdings are sold and the certificate continues to run like cash until all holders have sold.
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•@Epi
This is of course important to know. You might want to add this answer as a Q&A point in your post.
Would you agree that hedge funds are a science in themselves and too complex, even for experts to manage, for investors to profitably invest in passive index funds over the long term?
Would you mix your certificate into an asset class like $GERD $K0MR? Or what would be the structural differences for you?
For me, the two go well together:
- Broadly diversified across several asset classes
- Rule-based active investing
- Multi-factor (smart beta)
- High volatility possible and priced in
This is of course important to know. You might want to add this answer as a Q&A point in your post.
Would you agree that hedge funds are a science in themselves and too complex, even for experts to manage, for investors to profitably invest in passive index funds over the long term?
Would you mix your certificate into an asset class like $GERD $K0MR? Or what would be the structural differences for you?
For me, the two go well together:
- Broadly diversified across several asset classes
- Rule-based active investing
- Multi-factor (smart beta)
- High volatility possible and priced in
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6H
@Tacticus Good point, I'll add the note about the closure.
But I don't quite understand your question. Hedge funds are not a science in themselves, they are based on the findings of financial market science. They are also not too complex for experts, as you can see from the fact that there are some very successful hedge funds that have consistently outperformed for decades. Passive index funds are not hedge funds.
Kommers funds are relatively complicated and expensive variations of an AllWorldETF. In other words, they are not multiple asset classes, but only equities. The activity is limited to rebalancing, i.e. rather passive.
But that's fine. Your basic question is whether Kommers funds and 3xGTAA complement each other well. Yes, they do. That is one of the systematic ideas behind the wikifolio: an uncorrelated, high-performance multi-asset momentum strategy fits perfectly into a world ETF portfolio. 3xGTAA brings everything that the Kommer fund does not have (both share the scientific basis, the rule-based nature and the investability).
Another interesting question would be what the optimal mixing ratio is. The calculation will come in the monthly update, but with the Kommer fund in the portfolio it should probably be around 75% Kommer, 25% 3xGTAA.
But I don't quite understand your question. Hedge funds are not a science in themselves, they are based on the findings of financial market science. They are also not too complex for experts, as you can see from the fact that there are some very successful hedge funds that have consistently outperformed for decades. Passive index funds are not hedge funds.
Kommers funds are relatively complicated and expensive variations of an AllWorldETF. In other words, they are not multiple asset classes, but only equities. The activity is limited to rebalancing, i.e. rather passive.
But that's fine. Your basic question is whether Kommers funds and 3xGTAA complement each other well. Yes, they do. That is one of the systematic ideas behind the wikifolio: an uncorrelated, high-performance multi-asset momentum strategy fits perfectly into a world ETF portfolio. 3xGTAA brings everything that the Kommer fund does not have (both share the scientific basis, the rule-based nature and the investability).
Another interesting question would be what the optimal mixing ratio is. The calculation will come in the monthly update, but with the Kommer fund in the portfolio it should probably be around 75% Kommer, 25% 3xGTAA.
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I made a mistake with the asset classes. Sorry for the confusion. It's already late. I'll get back to you tomorrow 😅
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