Mustachian portfolios

[Doffy]

Thank both of you for your answers.

Any specific reason for this ? It has lower TER and is more liquid.

You are right asking why not to do that with the other. It is for simplicity reason. I am ok to rebalance between 2 portolios, but I prefer not to do it with more. I also think in term US vs the rest of the world. I don’t mind having the EX-US grouped all in one. It is purely subjective.

[Helix]

There shouldn’t be any rebalancing between funds needed at all, if:

• the funds track a market cap weighted index
• you allocate precentages according to the total maket cap of the tracked indexes
• the funds are distributing (or have negligible differences in dividend yield)
• their difference in TER is negligible in absolute terms

VTI & VXUS would work

[Nabucco]

Here is my current portfolio.
Just started in 2021 (unfortunately, way too late with age >30) with a 20+ year horizon.

My thought process/strategy:

• keeping it simple (only a few ETFs)
• keep it wide (not just US large caps)
• where possible ESG indices (ESG Leaders & ESG Enhanced fit perfectly)
• currently 100% stocks
• still quite some cash in a deposit account (I guess, I will need to move that into bonds and more stock ETFs soon)

Any opinions?

• Too much home bias?
• Too little Europe (ex Switzerland)?

[Dr.PI]

Very good! I just don’t understand why you have to consider such detailed allocation if you have only 3 ETFs.

Include your second pillar. Everything will change a lot.

@Nabucco

Too much home bias?

Yes! Pension funds already heavily overweight Swiss stocks.

@Nabucco

still quite some cash in a deposit account (I guess, I will need to move that into bonds

[FunnyDjo]

It will be interesting to know the weight of all the other assets (cash, bond, equity).

[Neville]

Not sure if MSCI Switzerland offers enough diversification. It’s only 40 constituents.

Maybe SPI would be better. Or a combination of SPI Extra and SMI.

[Nabucco]

Very good points.

I currently completely ignored my 3a pillar VIAC in my strategy. (except for picking MSCI Switzerland IMI to complement the SMI ETFs in VIAC)
And of course my (currently still) large cash assets that I will need to shift into stocks over the next 6 months.

I will definitely increase my US/EU and EM positions and not any more Swiss stocks.
And also somewhere include my cash,bond,equity in my portfolio, to have a better overview of all my assets.

[ChickenFat]

@Dr.PI

Include your second pillar.

How would you do this? I barely understand the 2nd pillar statement. I have no clue what asset allocation is realistic?

[Dr.PI]

A pension fund has an asset allocation, they earn money on these assets, pay pensions, create reserves and so on. So inside it is a complex portfolio. But from outside, for you as a user, its function can be understood as that of bonds. You get some small, guaranteed non-negative return.

So a simple way is to count 2nd pillar as bonds allocation in your portfolio.

How to calculate Investing vs Pillar 2 buybacks?

Hi, I recently moved to CH and my partner and I have around CHF 300K pillar 2 buyback available between us two. On the other hand, we have CHF 100K to invest right now from a past real estate sale. What would be Mustachians’ best calculation method to know the best path & mix between Pillar 2 buybacks and pure investment (e.g. ETFs) Some elements I think we need to consider: Age (30s) Wealth Tax Will retire in CH ? (yes 95%+ likely) Reinvesting the tax savings Pillar 2 investment specificit…

[MUFC_OK]

@Dr.PI

But from outside, for you as a user, its function can be understood as that of bonds. You get some small, guaranteed non-negative return

unless inflation eats it all up and some more…

[MPappa]

Hello,

As always, apologies for the question bc as far as now, I have not found the answer and I may have misunderstood the article from MP…

Regarding this ETF ISIN CH0111762537 commented in the article:

Establishing a Bogleheads three-fund portfolio as a Swiss investor

Cannot find it in IBKR…? Is it simply not available?

Thanks for any help.

Br.

[mabi]

@MPappa

Cannot find it in IBKR…? Is it simply not available?

Did you try with it’s ticker? For example: SMMCHA or SMMCHA.SW

If not on IBKR, it is always available of DEGIRO. I have some of my portfolio allocation into that very same ETF on DEGIRO.

[San_Francisco]

@MPappa

Cannot find it in IBKR…? Is it simply not available?

https://misc.interactivebrokers.com/cstools/contract_info/v3.10/index.php?action=Conid%20Info&wlId=IB&conid=80486947&lang=en&ib_entity=

[lorenzogm]

How is it going with that portfolio? Do you still keep it? Same percentages?

[xorfish]

Yes l, I still use it. I added AVES whrn it launched to have more factor exposure in emerging markets.

[wapiti]

My portfolio:

[johndoe1]

Interesting. What’s the leveraged part?

[wapiti]

TMF (3x long 20+ Year Treasury), UPRO (3x long SP500) and TQQQ (3x long Nasdaq)

[johndoe1]

I see, ballsy! Is this just short-term bullishness? I guess in the long run these leveraged ETF’s costs would break your neck, wouldn’t they?

Also wondering if margin or options would be cheaper, have you checked that?

[wapiti]

I own them long-term (even if they are designed for short term). Options would be cheaper, but more complex to maintain.
The backtesting is great. TMF reduces the volatility.
This strategy has been explain on this form: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs] - Bogleheads.org