2Semana·

Work in progress

Hi all guys!!!

I would like to share with you my ideal portfolio allocation, as read from the title it is still a work in progress, I am slowly adding positions as opportunities arise.

A little context: I am 24 years old, a final year medical student, and I am slowly putting money aside that I can invest both through my part time job (preparing for the medical test and tutoring for first year exams) and through the savings I already had set aside. The platform I currently use to invest is Directa.

Let's say that my goal at the moment is to reach over the years an invested amount of 50k euros in ETFs and distribution stocks, ideally distributed as follows:

CORE

-30k in growth-oriented developed markets etf (10k/30k)

Those selected are. $FGEQ (-0,07%) (10k/10k) , $TDIV (+0,05%) (0k/10k) and $HMWO (-0,09%) (0k/10k), so as to have income every month, as they distribute alternately;

SATELLITE

-5k in emerging markets etf (0k/5k)

I chose $IEEM (-0,33%) to diversify;

-5k in high-distribution etf (2.5k/5k)

In this category I own. $VHYL (-0,04%) ;

-5k in active option-based etf (5k/5k)

Here I have already completed my position in $JEGP (+0,22%) , which by the way distributes monthly ;

-5k in single Italian stocks (0k/5k)

In this category I have already selected some of the possible additions, such as. $PST (+0,69%) , $ISP (+0,45%) e $TRN (+1,48%) , but at the moment the prices are too high and I am not willing to buy now;

Considerations and Strategy Explanation: I start by saying that I know that at my age it would be better to buy accumulation instruments for the best taxation and growth over time, but personally the idea of receiving a monthly cash flow (albeit still small) without having to do anything at all has an important psychological impact, and seeing it grow slowly gives me a lot of satisfaction and motivates me to continue on this path. I started immediately by positioning myself on high-dividend etfs such as $JEGP (+0,22%) e $VHYL (-0,04%) so that I already had a small boost in the strategy; I hoarded $FGEQ (-0,07%) during the first week of April by taking advantage of the flash crash that took place, and now I am accumulating liquidity in anticipation of another possible reversal: ideally the next move will be to start accumulating shares of $TDIV (+0,05%) to diversify in currency as well: last note, the etfs chosen are also from different issuers so as to diversify in this aspect as well.

Let me know what you think!

15 Comentários

2Semana

Having a good strategy that fits your goals is awesome. Acc might be better long term as you already said but nothing wrong with dis etfs if you want that Cashflow :)

Why you wanna put 5k in a Single italian Stock? Only because you are from italy? Or because you think that these companies are good ones? If you only want to invest cause you are from Italy i would ovething that. That's a home bias and most likely not good long term.

You are saying your aim is to invest in growth oriented etfs and you are also saying you have some money set aside that you wanna invest slowly. If your focus is on growth, why not invest everything that's possible right now? Time in the market beets timing the market. Especially when you focus is growth.

The job of a Core is to build the majority of your portfolio and be the backbone of it. If the 3 stocks you mentioned are supposed to be your core then your main goal should be to build them up first and asap. Why are you already buying the satellites if you do not have a core yet? That means your satellites are your core right now and you are not following the strategy you are mentioning here.

You do not really get an advantage by buying high divident etfs up front. If you have a strategy that's awesome but than stick to it and do not act differently. If you have a strategy but you are not following it it's useless to have one :)

•

Frasgaa@Frasgaa

2Semana

@Snopy First of all, thanks for the comment!

About the italian stocks, I know that this seems like a home bias, but in reality there are few reasons that made me think these stocks are a good idea: buying dividend stocks from other countries significantly reduces the income from dividends because of the double taxation they have in their home country and in Italy too, while buying italian stocks allows me to pay a single taxation (26%); furthermore, these are the stocks I know the best and a rule that I use is to not invest in something I don’t know: while ETFs permit a wide diversification, buying single stocks is way riskier so I have to choose them wisely; lastly, I think that the ones I mentioned are really solid companies, with good fundamentals and dividend growth history, nice payout ratio and are also a way to diversify more, because in the three core ETFs I chose italian companies are only marginally represented!

Regarding the money set aside, I think that there is an error in traslation from the app haha (I wrote this post in italian) because the money I have already invested came from money I had set aside during the years, and right now I only have 2k cash waiting to be invested in TDIV, because I think that the events that are happening in these days can have repercussions in the stock market and I’m waiting for a better price in the short term :)

In terms of core and satellite strategy I think you are right, I maxed my FGEQ position as soon as possible , and even if I have already started buying satellite assets before completing the core, I did it because at the time they had a better price than core ETFs: my goal is now focus on TDIV and HMWD!

••

👺@Etf_Milano

1Semana

Good luck with your strategy. I understand the psychological discourse of monthly cash flow. Legitimate choice.
I too have my main portfolio on Directa and have active weekly no-cost entry PACs.

•

Catalin@xcatalin

1Semana

Be careful with $TDIV as there is a withholding tax of 15% in netherlands, which depending on your country of residence, you may not recover and you will end up paying dividend tax in your country as well

•

Frasgaa@Frasgaa

1Semana

@xcatalin Thanks for the comment! I have already heard about this tax, but looking online I was told that every ETF has a double taxation, the difference between TDIV and others is that in the others (for example Vanguard, iShares and so on) the first taxation is not showed in the brokerage account as it is witheld straight away, while in TDIV and other Dutch ETFs the broker shows the import before both taxations so it seems that the taxation is higher. Practical example: here in Italy there is a dividend tax of 26%; a dividend from an Irish ETF comes in my broker already partially taxed and to my eyes seems like there is a single tax of 26%. TDIV looks like has a double taxation for a total of 41% (15% dutch and 26% italian on the remaining 85%).

This is what other italian investors told me, and even if it isn’t true, I think that TDIV is a great growth ETF!

••

Catalin@xcatalin

1Semana

Some domicilied in Luxembourg which tracks european indexes does not retain the first tax. Then $JEGP for example does not have any tax because these are not considered divididends and you will only pay capital gain tax in your country of residence.

•

Frasgaa@Frasgaa

1Semana

@xcatalin can you tell me some of these ETFs? I will do some research 🔬

••

t0t0_2295@t0t0_2295

1Semana

Hmwd distributes in the months 2/5/8/11
As well as fgqi
Ieem has very high t/d and not good at all, tdiv also quite high
5k in high distribution etf you can't put a vhyl 3%,gross you don't do much with it
5k in Italian stocks you may as well not put them ,risking on individual stocks to date doesn't make much sense
Your strategy is called "3 legs" and it is very good ,you have in my opinion some tricks to do in the choice of products

•

Frasgaa@Frasgaa

@t0t0_2295 Thanks for the comment!
Actually HMWD distributes 1/4/7/10, only this last payment was in May so it alternates well with TDIV and FGQI!

As for Italian stocks in the end I considered them because they are still very good and have higher yields than ETFs, and anyway they are only 10% of the ptf so still a higher but limited risk, which I can afford at the moment

Regarding the criticism on IEEM I can tell you that I had also evaluated VFEM, but to diversify the issuer, because of the lower TER and the yield of the last years IEEM seemed to me more convincing, but anyway among all the positions the one on emerging I think it will be among the last to be added so I still have way to deepen ✔️

Finally for VHYL you are right that 3% gross is not much, however for being distributed by an ETF it still seems to me quite good, and most importantly I don't know of any better products of this type. If you have any advice let me know!

••

t0t0_2295@t0t0_2295

Going in order:
Hmwd does NOT pay in the months 1/4/7/10 , in those months he makes them ex-divkdemd with payment instead in the months 2-5-8-11 if you don't believe me go to the Italian stock exchange website you can check the payments there, as well as the other hsbc products
Ps there has been in portfolio for a while now
Pps the fact that it distributes "later" is not relevant it still remains the best wolrd to distribute hands down, it was just so you don't get your math high

As for Italian stocks (but also American, British Japanese etc etc ) with the advent of etf we small retail it no longer makes sense to take unnecessary risks with individual stocks since they have made etf so efficient, also because you go overexposed on some stocks you already have in etf

Emerging discussion: the problem with distribution products with emerging is that they all suck, they all have a very high t/d and we all underperform the benchmark index, advice for the future, don't give too much weight to the ter but look instead at the t/d (traking differences)which is much more useful
For a decent emerging try studying DEM which also distributes in the months 1/4/7/10

As for vhyl grows little capital and dividend you may as well not put it

••

Frasgaa@Frasgaa

@t0t0_2295 Thanks for the advice on HMWD, on directa it was marking those months as distributions so I will take that into account ✔️

For single stocks you are right that they are risky, in fact 90% of the portfolio are ETFs and those would be only a marginal portion, by the way I chose to take Italian ones precisely because in ETFs they are underweight and have tax advantages in dividend taxation

On the topic of emerging ETFs I took a look at the DEM, and personally I am not very convinced especially because of the fact that in 15 years it has remained practically at the same price unlike IEEM and VEMT, then maybe I will analyze it more calmly ✌🏻

For the high yield argument what would you recommend instead of VHYL? I don't know of a better comparable ETF so I am open to advice

••

PelaPatate69@PelaPatate69

Another Italian investing? Crazy 😂❤️

•

Frasgaa@Frasgaa

@PelaPatate69 AHAHAHAH strange but true! Come on we slowly wake up too!

••

Utilizador eliminado

1Semana

O comentário foi eliminado

Frasgaa@Frasgaa

1Semana

@BarbieResearch Why do you think I should eliminate it? I personally think it's a way to have slightly higher dividends while still investing in ETFs and not in individual stocks (although by now I get your point about dividends 😜) then out of all of them it's the only one that invests in both developed and emerging markets!

••