Hi fellow Mustachians,
I just wanted your advice on a possible portfolio. I am in my mid thirties. Living and working in Switzerland and have a few 100K to bring to the market.
I was thinking :
80% Stocks (of which 80% VT and 20% CHSPI)
20% into something more stable, options are :
Bonds : Global Aggregate Bond UCITS ETF - CHF Hedged Accumulating
NB I have a Pillar 2 but can not consider this as the stable part of my portfolio, at least not to retire early on.
Why not? As soon as you don‘t work anymore you you can invest it so it fits your strategy (allocation %)
This portfolio is in my own name. The pillar 2s I share with my wife. It has something to do with marriage arrangements.
Still part of the 2nd pillar is yours. Usually 100% before marriage and then 50% thereafter
Also be careful, especially if you two have children. Even if you have a marriage contract, the judge can negate it and your wife gets half of it in case of a divorce.
Any advice on the portfolio? Would you do similar or different?
Personally, I wouldn’t buy bonds in the current situation and I also wouldn’t have such a heavy tilt to swiss stocks.
If I were you, I’d go 100% VT.
Thank you for the hint of VAGX.SW. I wasn’t aware that Vanguard had such a global aggregate bond ETF. I am not such a fan of iShares so this is an alternative to AGGH.SW although pretty new and not much assets under management (AUM)… So because of that low AUM and being a pretty new ETF (September 2021) I would not include it as part of my portfolio. But definitely an ETF to keep the eyes on, especially if things changes in terms of interest rates.
Is 2.8B small? (it’s just a new share class for an existing fund)
I read the wrong column (Share Class Assets with 2.46M) instead of Total Assets with 2.8B. So yes AUM is more then fine I guess, then I saw trading volume is quite low but I was also told this is not such of a problem.
Basically sounds like paying Vanguard for guaranteeing to lose you money (purchasing power after inflation) at this point.
Ok, point taken. I will build up stocks first and cross de bonds bridge further down the line.
I like a bit of home bias due to the strength of the Swiss franc. I may reconsider the 20 percent and put it a bit lower.
Most big players in the swiss markets get moreb than 90% of their revenue abroad in other currencies.
Here’s a recent discussion about home bias
Scroll to the „WINNERS, LOSERS, AND THE CASE FOR OWNING EACH“ article, before things are a bit blah blah.
My Pitch is NOT to overweight Europe, my Pitch is to underweight US (aka overweight ExUS) and re-adjust sector and factor exposure to offset this shift to the extent you can.
My view is that many folks get the Efficient Market Hypothesis wrong. We get Market Returns when we diversify and our exposure to Sectors and Factors equates to their respective All World weights. Jurisdictions are…
I would definitely trust the fact sheet over justETF and the fact sheet clearly says total assets are CHF 2.8 billion. It seems justETF consistently shows the volume of the share class, not the whole fund. The volume of the share class is much less important, though. E.g. see Vanguard’s reply with regards to the risk of fund closure:
I asked Vanguard - Which AUM is important for a fund's closure risk? - Bogleheads.org
Which is correct, because this is what you buy. And share classes can be also closed, and I guess it is easier to do than to close the whole fund.
But it is also correct that factsheet usually shows both numbers.