I have been reading and learning a lot from this forum, so let me start with a big “thank you all” as this is my first post. Really a great community.
As per subject, I’ve been doing my homework for the past 6months+, now opened my IB account and I’m ready to start investing. So I wanted to get some feedback on what I came up with as an ideal portfolio.
My rationale behind it is mainly:
- Dividend Acc vs Dist has no (much?) difference from tax perspective in CH. Actually, if the ETF is not listed in the ICTax, Acc strategy is even worse because authorities do not know how to tax it, so they will take all they can.
- Try to keep TER at the lowest
- About index replication, go for physical and ideally always full replication
- For funds with high exposure to US, go for US domiciled, as the tax treaty US-CH will bring the Withholding taxes basically down to 0% (if properly filling W-8BEN and DA-1)
- For funds with exposure to EU, and in general without exposure to US, go for IE domiciled funds preferably, LU domiciled otherwise.
- I want to diversify a lot, both geographically and cap-size wise (US Large and Small Cap, EU large and small cap, APAC, REIT, SRI)
- I didn’t actually seek for Dividend ETF specifically, it just happened that most of those who met my criteria and have high performance/low taxes pay dividends
Considering the above, here my selection and related distribution (disclaimer: heavily influenced by @MrRIP’s blog):
|EQUITIES: Real Estate||5.00%||iShares European Property Yield UCITS ETF||IPRP||EUR||IE00B0M63284||FTSE EPRA/NAREIT Europe ex UK Dividend+||0.40%||Dist||Ph: Full Replication|
|EQUITIES: USA Big-Medium cap||25.00%||Vanguard S&P 500 ETF||VOO||USD||US9229083632||S&P 500||0.03%||Dist||Ph: Full Replication|
|EQUITIES: USA Small Cap||10.00%||Vanguard Small-Cap ETF||VB||USD||US9229087518||CRSP US Small Cap||0.05%||Dist||Ph: Full Replication|
|EQUITIES: Tech (NASDAQ)||5.00%||Invesco NASDAQ-100 UCITS ETF||QQQ||USD||IE0032077012||Nasdaq 100||0.30%||Dist||Ph: Full Replication|
|EQUITIES: Europe Big-Medium cap||20.00%||Lyxor Core Stoxx Europe 600 (DR) UCITS||MEUD||EUR||LU0908500753||STOXX Europe 600||0.07%||Acc||Ph: Full Replication|
|EQUITIES: Europe Small Cap||5.00%||iShares MSCI EMU Small Cap UCITS||CEUS||EUR||IE00B3VWMM18||MSCI EMU Small Cap||0.58%||Acc||Ph: Optimized Sampling|
|EQUITIES: Asia||10.00%||iShares Core MSCI Pacific ex Japan UCITS||CSPXJ||USD||IE00B52MJY50||MSCI Pacific ex Japan||0.20%||Acc||Ph: Full Replication|
|EQUITIES: Emerging Markets||5.00%||iShares Core MSCI Emerging Markets IMI UCITS||EIMI||USD||IE00BKM4GZ66||MSCI Emerging Markets Investable Market||0.18%||Acc||Ph: Optimized Sampling|
|EQUITIES: World High Dividend Yield||10.00%||SPDR S&P US Dividend Aristocrats UCITS ETF||USDV||USD||IE00B6YX5D40||S&P High Yield Dividend Aristocrats||0.35%||Dist||Ph: Full Replication|
|EQUITIES: Social Responsibility (SRI)||5.00%||UBS ETF (LU) MSCI EMU Socially Responsible UCITS||UIMR||EUR||LU0629460675||MSCI EMU SRI 5% Capped||0.28%||Dist||Ph: Full Replication|
The questions and doubts I still have or would like your help and experience in clarifying:
- Am I diversifying too much with too many ETFs?
- Does it make sense keeping 5% positions or is it too small exposure?
- I’m currently unsure on the EU small cap and EM ETFs
- Haven’t seen much discussion on the STOXX Europe 600 vs STOXX Europe 50… I’m more towards the former but this is still keeping me thinking
Any advice on different ETFs or different distribution among those greatly appreciated.