1Semana·

S&P500 recommendations

Have a nice Friday together!

I am currently considering switching my ETF holdings of the $VWCE (+0,33%) into an S&P 500 in order to finally commit to a long-term core. I want to get rid of the FTSE All World as I feel I am giving away performance and the S&P 500 might be a better choice for me.

I am still undecided which provider to choose for the ETF, can you please tell me your experience and which S&P500 you invest in.

Have a nice weekend everyone.

28 Comentários

Stulle 🥪@Stullen-Portfolio

1Semana

Why focus on a single state? Especially if it is to be a core?

...there are also wonderful global ETFs that are nevertheless more focused than a world or all-world ✌️...and have the return of an S&P500 ETF 🚀

$IQSA $XDEM $QGRG

Greetings
🥪

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Umut Y.@7digitbaki

1Semana

@Stullen-Portfolio well never bet against America... all 3 of your ETFs are also almost 70% USA weighted. The only difference is that it performs worse than if you would go 100% USA with a sp500 for example

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PietAT@Petzi-Port

1Semana

@Stullen-Portfolio Thank you for your opinion.

I tend to be in the market for performance and as many know too much diversification kills performance + I'm thinking little growth from Europe and Asia. Tech stocks make the most performance in the ETFS.

But have to be honest I know few ETFS I'll have a look at your AllWorld

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TotallyLost@TotallyLost

@7digitbaki Yes, they are, but should the wind change and the USA perform worse, then the composition of the ETFs will also change.

But if you have an S&P500, you are always 100% invested in the USA.

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TotallyLost@TotallyLost

@Petzi-Port Diversification does not reduce returns, it reduces variance.
To say it reduces returns means that you already know today the winners/losers of tomorrow.

But if you can identify them today, why are you investing in ETFs?

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Epi@Epi

1Semana

SP500 has a completely different risk profile than Allworld. Not only do you have a significantly higher country risk and political risk, but also a currency risk.

The SP500 has reached a valuation ATH, like in 1929, 1970, 2000, 2008, 2022 - after that, returns were poor for a long time.

Do what you want, but I'm not sure rebalancing is a wise decision. 🤷

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Tenbagger2024@Tenbagger2024

1Semana

@Epi
No risk no fun, but you're right, you never know with 🍊. Maybe add the Eurostoxx to the mix?

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PietAT@Petzi-Port

1Semana

@Epi I would only reallocate if there is a correction or build up the position via a savings plan, as the large positions tend to perform best in the ETFS.

I doubt that European equities will travel much in the future due to politics.

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Tenbagger2024@Tenbagger2024

1Semana

Perhaps the $SP20 is also an alternative

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EriOe_Investment@EriOe_Investment

1Semana

@Tenbagger2024 have also switched to $SP20.

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Tenbagger2024@Tenbagger2024

1Semana

@EriOe_Investment
As far as I have followed it, it has performed better than the normal s&p 500

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PietAT@Petzi-Port

1Semana

@Tenbagger2024 I'll have to take a look

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Stulle 🥪@Stullen-Portfolio

1Semana

@Tenbagger2024

...or the $MEGA, if there are more than 20 but less than 500 positions 😉

Greetings
🥪

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Mike_Invest@Mike_Invest

1Semana

How long is your investment horizon?

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PietAT@Petzi-Port

1Semana

@Mike_Invest Phew, that's a good question, I haven't thought about that yet.

10 years approx.

My plan would be to save in the ETF until I have an initial investment of 100k in the ETF and continue to invest in individual shares.

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Mike_Invest@Mike_Invest

1Semana

@Petzi-Port
Okay. Which individual stocks should it be? The ones that are in the top 10 of the S&P or the AllWorld?
Or rather some from the second tier?
And... do you think that the individual stocks will outperform the market over the next 10 years?

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PietAT@Petzi-Port

1Semana

@Mike_Invest I can't tell you which individual stocks they will be in the future, I currently have 9 individual stocks in my portfolio, if you would like to see them, just follow me briefly.

3 positions from the portfolio are hedged with a stop loss and if these stop out, the money goes into an ETF

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Mike_Invest@Mike_Invest

1Semana

@Petzi-Port
Ok.
Once again about the ETF...
In my opinion, you should diversify as broadly as possible. In my opinion, the S&P is better for increasing returns in the short term, whereas the Nasdaq100 would probably be a better choice.
As a long-term investment, I would diversify as broadly as possible. At least All World (emphasis on at least) plus other assets such as gold and BTC.
Increase the savings rate and take advantage of compound interest.

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PietAT@Petzi-Port

@Mike_Invest Thank you for the detailed opinion.

Maybe it will be the Nasdaq, let's see, I would like to get some opinions :)

As I said, the ETF would be planned as the core + the fluctuations would be fine, I'm still young.

I also have other investments, e.g. crypto, I didn't include it in the post :)

Gold is also still on my list!

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Ph1l1pp@Ph1l1pp

1Semana

Absolut, go for it!

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PietAT@Petzi-Port

1Semana

@Ph1l1pp Thank you, do you have an S&P500 that you can recommend on TR? Do you use Traderepublik yourself?

What were the reasons for your core ETF?

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Ph1l1pp@Ph1l1pp

@Petzi-Port have the $XLKS on Trade Republic, running a very aggressive momentum strategy consisting of S&P Tech Sector ETF/ Bitcoin and cash.

I am still young and have the necessary resources (time and my own algorithm) to outperform the S&P500, so why not 🤷🏻‍♂️

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PietAT@Petzi-Port

@Ph1l1pp ok I understand, I'll see which ETF I choose, my goal would be to have the 100k in a distributing ETF that performs better than the All world😅

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Ph1l1pp@Ph1l1pp

@Petzi-Port I don't know why you should opt for a distributing ETF...

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PietAT@Petzi-Port

@Ph1l1pp because in Austria you have to pay an upfront lump sum for reinvestment, I would have thought that would be the case in Germany too

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Ph1l1pp@Ph1l1pp

@Petzi-Port you are probably confusing distributing and reinvesting

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PietAT@Petzi-Port

@Ph1l1pp You said that you see no reason to invest in a distributing fund because an accumulating fund makes more sense to you.

For us, an accumulating etf has no advantage because we have an upfront lump sum on the "accumulating income".

That's why I opt for the distributing ETF straight away

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Stulle 🥪@Stullen-Portfolio

@Petzi-Port
Is this really the case in every instance?

In Germany it is not always the case.

The return advantages of the accumulator compared to the distributor have decreased but are still there.

A.
If interest rates are low, the advance tax for the accumulator is zero; tax is due on the distributed dividends.

B.
If there is no price appreciation in a year, there is no advance tax for the accumulator; tax is due on the dividends distributed.

Greetings
🥪

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