I currently have an asset allocation of around 60% stocks (100% VT) and 40% stocks (2nd pillar, 3rd pillar). Now although VT is already quite broad in terms of diversification as it covers the whole world I wonder which direction I should better diversify my portfolio.
After looking a while I am under the impression that I should either go for an ETF in emerging markets and / or an ETF in real estate investments. I was thinking of an allocation of around 10% of my portfolio in on of these types of ETF. What do you think?
As I am with DEGIRO for broker I am inclined to the following two ETFs which are free of transaction charge:
For EM: iShares MSCI EM UCITS ETF (Dist) -> https://www.justetf.com/ch-en/etf-profile.html?query=IE00B0M63177
For REIT: iShares European Property Yield UCITS ETF -> https://www.justetf.com/ch-en/etf-profile.html?query=IE00B0M63284
Regarding REIT I chose the European one based on lower riskiness but they also have Asia (IE00B1FZS244), Global (IE00B1FZS350) and US (IE00B1FZSF77) available. But I am not scared of taking more risk here for better performance as this would only be a 10% part of my portfolio and I am anyway in for the long-term.
Looking forward to reading your thoughts…