Mustachian portfolios

Investing / Portfolios
347

So…for resume:

I have VIAC (about 6800chf anual)

The rest of my portfolio ALL VWRL

It’s the more simple and cheaper

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348

Hello!!

I found this ETF ==> IE00B4L5Y983

It’s similar to VWRL but lower TER.

Your opinion? Thanks

349

Difference is in accumulating (SWDA) vs distributing dividends (VWRL).

(Otherwise VWRL seems to me a bit more diversified (3900 vs. 1645), as they track different indices - FTSE vs. MSCI.) --> irrelevant

Edit: Thanks @yakari for filling in. Didn’t get that part from the quick google as they don’t sit on my preferred etfdb.com/etf.com comparison sites. :slight_smile:

@omoyano Then you would need to add something like EIMI to it, if you want to “replicate” VWRL.

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351

IWDA/SWDA + EMIM/EIMI is the perfect combo. Makes no tax difference for Switzerland, but I’d go with the accumulating ones for less hassle.

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352

So…SWDA : IE00B4L5Y983 + EIMI:IE00BKM4GZ66 (but not free in Degiro I think)

353

Don’t get hooked up too much on minimum TER and free to trade ETFs. Choose the most ilquid ETF on the most liquid exchange as you will save much more on spreads this way.

IWDA and EMIM are moth available in EUR from the Amsterdam Exchange on Degiro and this would be my #1 picks for Degiro.

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354

Thanks a lot. I choose finally:

Both in degiro free etf list

355

Trust me, EMIM will come out cheaper to buy and own even if it is not on the free ETF list.

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356

Ok I trust you so EMIM with ISIN: IE00BKM4GZ66

So finally (I hope :sweat_smile:) :

70% IWDA : IE00B4L5Y983 iShares Core MSCI World UCITS ETF
15% EMIM: IE00BKM4GZ66 iShares Core MSCI EM IMI UCITS ETF
15 % VIAC SMI/SPI (and extras…)

4 Likes
357

Hello everyone, I’m new! Thanks to the “current situation” I’ve had plenty of time to read about investing and one of the ressources I’m thankful I found is this forum. It’s just great. I also realised I’m doing all quite wrong :smiley:

So: I’m swiss, almost 40, I use TradeDirect and I started ~4 years ago. My current portfolio:

Stocks (handpicking :-1: ): 70%
Cash: 20%

and just started with ETF:

iShares Core SPI ETF CH0237935652: 6%
UBS ETF SMIM (CHF) A-dis CH0111762537: 4%

I want to move to this configuration:

Vanguard FTSE All-World UCITS ETF IE00B3RBWM25: 60%
iShares Core SPI ETF CH0237935652: 25%
UBS ETF SMIM (CHF) A-dis CH0111762537: 15%

I also just opened 3 Frankly 3rd pillar - 95% - which are currently empty, but I will move all my 3 accounts to Frankly by the end of the year.

Thanks for the good advice I found here!

358

Why SPI and SMIM in TradeDirect? You’ll have enough home bias in Frankly?

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359

Hi,

thank you for the comments:

  • it’s a very good point, I’m actually looking into opening an account at Degiro for ETFs
  • I don’t understand the question. Do you mean there should be more home bias and frankly doesn’t offer it ?
360

Your desired allocation is 60% FTSE All World and 40% Swiss ETFs, leading to roughly 41.5% allocation to Switzerland. Eventhough it’s market cap weight is just 2.6% of the world. Could you explain why you want to do that?

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361

I guess because I live work and will retire here. But like I said, I only “studied” all that for the last 10 days so I’m very open in suggestions and improvements!

What did you mean with the Frankly 3rd pillar ?

362

Home bias for Swiss folks is a bit weird, you have 3 giants who mostly have revenue from outside of Switzerland and represent 55% of SPI, they are headquartered in Switzerland but they could have been anywhere.

Given that by law your 3a investments are already biased towards Switzerland there’s little argument towards introducing more biasing, or at least use something that does not include the big 3.

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363

There is nothing wrong with some home bias, but 40% is really pushing it. I wouldn’t bet almost half of my assets on 2.6% of the global market. Frankly 3rd pillar has already a 30% allocation to Swiss equities and 40% of the foreign equities are hedghed to CHF. So that should give you more than enough home bias. No need to add any additional Swiss ETFs.

The 10 largest companies in Switzerland make >90% of their revenues abroad, Nestle for example even 98%. Are they really Swiss in that regard?

2 Likes
364

Thank you very much for this. It will help me think a bit more and adjust what I thought was good :slight_smile: Any suggestion welcome :stuck_out_tongue:

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365

My portfolio (I’m 27) that I just started a few days ago at IB’s:

Vanguard FTSE All-World UCITS ETF Distributing (VWRL) = 80%
UBS ETF (CH) SPI Mid (CHF) A-dis (SPMCHA) = 16%
UBS ETF (CH) Gold (CHF) hedged (CHF) A-dis (AUCHAH) = 4%

Looking forward to seeing how’s this composition will turn out.

366

What’s the point of hedging gold? I guess you understand what it means, right?
(4% is really small as well, is there any scenario where it makes a difference in your investment?)

1 Like
367

Not OP. I know what Hedging is… But what does that actually mean for Gold? Is it like the same as owning gold-backed CHF? Or is the Gold just traded in USD somewhere, and then that money gets hedged for some reason?