At 1% this is almost hedge fund territory. And for what? Opening an IB account and a few moments of your time every now and then to do a trade on schedule? Which anyone can do for free in their own free time, inspired by tons on great financial advice on the net, including this site.
Wrong forum dude, here we’re all focused on extreme savings and frugality.
[quote=“jrmycohen, post:35, topic:108”]
We designed 5 portfolios with different risk appetite in mind. In case this helps, here are 2 of them, our balanced and our most risky.[/quote]
What do you mean designed? Slapped a bunch of random ETFs together to make it look impressive to unsophisticated victims? Where’s the reasoning, research and backtests?
I hold the opinion that the more a portfolio deviates from classic time-tested 60/40-like schemes and market cap weighting, the stronger must be the justification for it. 8% and 20% weights for S&P don’t correspond in any way to the market realities.
I don’t see much point in CHF hedging, at least for equities and a long term buy and hold investor.
First, it’s expensive and has arbitrary timing - most funds rehedge monthly, so if you don’t give your portfolio a complete makeover at least similarly often it makes little sense to do it. Long term, ok, CHF as a safe heaven and low inflation currency does have a tendency to appreciate, but in a single month it can really go either way, it’s rather speculative to bet that it’ll go up every month.
Second, for equities (unlike fixed income), what you ultimately own are pieces of companies, rather than, say, $$$'s with which you bought them. In the long run, companies are valued on the basis of their earnings, which often come from all over the world. S&P companies derive over half of their earnings from abroad in all sorts of currencies, it’s not that extremely concentrated in the US and USD as one might think at first sight. Hedge that!
Ah, junk bonds. I trust my fixed income guy that they’ll blow up any time after last year’s massive spreads erosion and pulled out safely already early this year.
Besides, as a private investor in Switzerland, you don’t normally really want high dividends outside pillar 3a system here. They constitute a rather expensive taxable income, unlike tax free capital gains. You should pay attention to local tax system specifics when investing.
That costs investors real money with higher TERs, much higher transaction costs and a lot of lost unreclaimable withholding dividend taxes as I already mentioned above. (Of course, you don’t have to give a shit about any of that, it’s not your money, you get paid either way and only have to care about maximizing AUM…)
And exactly what’s so hard with filling a DA-1? It’s almost exactly like filling the main part of the tax form, Wertschriftenverzeichnis, except you send it to a different tax office’s department for processing.