Advice on portfolio for beginners

[Mario_wealth]

@yakari

Welcome into the market! Glad to read you made the first step.

Thanks a lot for the encouraging words!

@yakari

If you want to overweight (compared to FTSE market cap) Switzerland you might want to do it 1) inside your 3a (smi, spi extra in viac) 2) outside of 3a with ishare core spi (All CH) or ubs smim (mid cap CH), both to be found on justetf.
Reminder:
Your Pensionskasse is already chf overweighted.

If I follow correctly the logic, by looking at all my investments (considering VIAC 3rd pillar and TrueWealth), I’m already overweighting there Swiss stocks that are included in my VIAC 3a and TW automated portfolio.

This probably means that it makes even less sense to further overweight Swiss stocks in my current DIY portfolio in De Giro.

In my De Giro portfolio, I would then probably stick to investing exclusively in the Vanguard All World fund, and probably only consider the Swiss Stocks when, at some point, I will liquidate my “expensive” roboadvisor profile and transfer that capital into the De Giro account.

@yakari

As soon as you have more than one etf, you will need an assets allocation and stick with it. Staying the course is the most important but not always so easy to do (buy more of the losers).

As for gold / silver. I would not recommend it, but others think differently. You might want to watch:

Will Gold Save the Day? - PWL Capital

This seems to be a strong and well-motivated argument against having gold in the portfolio in my case. I will need to dig into the details of this topic and learn more about it.

@yakari

In summary i would say 1) you entered the market, that is great 2) VWRL is never a bad choice 3) now you are your worst enemy (psychological bias in investing). I would recommend you to only invest in VWRL and 3a for 1 year, see how it feels, get some routine, lose the emotions, get to know yourself, keep on learning about investing. After that reassess.

Thanks for all the valuable advice!

[Patirou]

You have to compare MSCI ACWI and FTSE World to get the indices right.

[OogieBoogie]

@ProvidentRetriever

For example, there is the BVK, which is one of the biggest Swiss Pensionskassen. Its investment strategy is public and the weights are available in the management summary.

Would love to understand the details about their 37% “Festverzinsliche Anleihen” > Bonds CHF&FW and about their expiration dates… how do you roll-over those with the current minus % and trying to keep your performance in the plus?

[oluwan]

The goals of pensions funds are different from those of individual investors. They need to be able meet their withdrawal cash flows first of all - now and for the foreseeable future. Maximizing returns is of secondary importance. Maybe they have a large aging / retired clientele and need those 37% in bonds, unlike you

Also another constraint they have is legal - BVG/BVV prescribe allocation maximums, e.g. they can’t invest >50% in stocks even if they wanted to

[Tea]

@Mario_wealth

Usually I would add a percentage of bonds, but to my current understanding (please correct me if wrong!), it is not convenient to invest in Swiss bonds for a Swiss investor, due to their negative yield.

The question is: what do you want to achieve and what is your time horizon. I wouldnt say that there is anything wrong adding bonds to your portfolio, especially if you have no experience with stocks or market crashes and already have a certain amount of money and a certain age. There are certain periods in history when bonds outperformed stocks.