I really dont like the SMI. It‘s 50% Nestle/Rocje/Novartis. So you have 15% of your total money in just these 3 companies.
40% home bias is also pretty steep imo. I personally would go max 30% and do 50/50 SMI/SPI extra. You are more evenly distributed over the swiss market that way and not as concentrated in the big 3.
Also why these single region funds? I would just go world ex-CH + emerging markets.
On the bitcoin: I personally think bitcoin is trash and has no intrinsic value, but 5% is fine as a small bet I guess.
I just would not bet on bitcoin having any value in 30 years though, when you retire and withdraw that money.
But again 5% is fine and doesnt break your bank if it fails.
A) Keep bitcoin out of your 3a (invest through a regular platform, keep a cold wallet if you still want to invest in it) and still use the Global 100 strategy.
B)
3% Cash (less if they allow it nowadays)
5% iShares Bitcoin Trust
20% CSIF SMI
7% Swisscanto SMI
9% CSIF SPI
8% CSIF Emerging Markets
47% CSIF World ex CH - PF Plus
1% CSIF World ex CH hedged - PF Plus
B.a) Realize that there’s nothing magical in the Global 100 strategy and get back to a more mundane allocation:
3% Cash
5% iShares Bitcoin Trust
2% CSIF SMI (or SPI Extra, I would go for SPI Extra since I don’t like the concentration there is in the SMI)
8% CSIF Emerging Markets
35% CSIF World ex CH hedged - PF Plus
47% CSIF World ex CH - PF Plus
B.b) Realize that 2% is very small and get rid of the Swiss allocation:
3% Cash
5% iShares Bitcoin Trust
8% CSIF Emerging Markets
37% CSIF World ex CH hedged - PF Plus
47% CSIF World ex CH - PF Plus
Edit: Straightened my numbers which were all over the place.
Thanks for all the good input and especially the possibilities to reduce the home bias with own allocation of SMI and SPI and with World (ex CH) + emerging markets. Actually it looks like I can max allocate 90% of my cash to stock and btc. Maybe because it is my smallest portfolio with ~7k CHF I transferred this year?
As far as I know, the main limitations at VIAC are (other fund specific limitations apply but don’t affect your current situation):
3% Cash minimum (maybe it’s 1% now).
40% min in CHF denominated assets.
5% max in IBIT.
The 40% CHF denominated assets is likely to be the one preventing you to allocate more to stocks at the time being, I would try putting the remaining allocation in a World ex CH hedged fund (they are CHF denominated) and see if that works.
I don’t actually have VIAC so I hope what I am saying below is actually possible.
I think you are going to be fine with the VIAC suggested Global 100. You can multiply the Global 100 weights by 0.95 and then you have a 95% stocks strategy. This will be simplest.
If you want to reduce Switzerland portion, then just reduce Swiss ETFs it by X% and adjust proportionally the rest of world. But normally the portfolio selection from VIaC is quite decent.
P.S -: on finpension I always use the proposed portfolio to keep things simple. I balance the ex-CH portion in my taxable account
Unfortunately it is not possible to adjust any standard strategy by an individual weight. I actually look at a simple allocation with diversified exposure and will probably go with:
I don’t understand why some of you don’t like overweighting the big 3 swiss companies and then get a SPI+SMI combo. SPI contains SMI so you are again overweighting them. Am I wrong?
On a side note, I’m not sure if overweighting is bad. All the companies on SMI are there for a good reason probably.
Most people have way too much Swiss stocks through their 2nd pillar (mine has allocated 50% of stocks to CH), so to reduce that I have excluded Swiss stocks in my 3a.
So by choosing 50/50 SMI / Spi extra, you are underweighting Swiss top 3 companies.
In my view, I don’t mind if top 3 companies in CH are big. Normally I just buy SPI. But in this case, there is no SPI anyways, so users need to decide if they want to use market weights for SMI + SPI extra or another combination.
I think there is another rule that individual weights in 3a portfolio cannot exceed any one company by X%, maybe that’s why most 3a breaks down SMI and rest.
Yes. They are global companies. They just happen to be in CH. It’s nothing bad. But some folks also have high exposure to these companies in 2nd pillar. So maybe that’s why they are avoiding too much exposure.
Having CH at global wieghts, this would be no problem. The problem just arises, if you have like 30% in SMI. You are overweighting CH, which is fine as a home bias, but this creates a giant weight in just those 3 companies.
Ask Finns that had a home bias in the 90s/early2000 what they think of their index back then, that was 80% Nokia and what happened to their investments there.
As a long terme user of VIAC, what about a little poll?
Do you :
1/ regularly adjust your strategy (=market timing).
If you consider we are in a high market situation, you go from 99% to 60% stocks for example.
Or you adapt the customized strategy to fit in your current conviction (bullish, bearish, real estate, crypto, etc…)
2/ no move with a VIAC strategy (99% stocks) because you are confident in their allocation
3/ customized strategy because you think your allocation would be better
What is your allocation and why ?
Regularly adjust your strategy
Do not change a VIAC strategy
Use customized strategy
0voters
For my part, I am on 2/, but just wondering if I may move on 1/
I was with 2/ (Global 100), but decided this year to change it to not have EM and to have a more straightforward strategy:
20% SPI (ESG unfortunately)
30% World ex CH Hedged
50% World ex CH
I want to have 50% CHF and 50% of other currency. Maybe not the best move for optimisation, but I’m ok with that and some year the hedged one will perform more than the unhedged one (also with Viac you need at least 40% CHF).
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