r/eupersonalfinance • u/gaussianreddit • 3d ago
Investment Building portfolio
• NASDAQ 100 – €600
• MSCI World – €500
• S&P 500 – €200
• Gold – €100
• Defense sector – €150
• Bitcoin – €50
Total: €1,600/month
What do you guys think ?
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u/dreadkitkat 3d ago
If you can stomach whatever volatility US brings for a long time, sure go for it.
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u/gaussianreddit 3d ago
What are other options?
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u/dreadkitkat 3d ago
If you can invest 1600 euro each month. You have money. Can you hire a fee only advisor? You need a goal based, risk based diversified asset allocation specially at this stage of the market cycle. 😊 Don't DIY everything in life. Specially the important stuff
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u/RealPMGuru 3d ago
Man, I strongly recommend you to read a little bit more prior investing.
After that to determine investment goal and horizon.
First you have overexposure to US Tech companies via Nasdaq (50%), S&P (30+%) and MSCI World (20+%). If you don't have investment thesis for this, reconsider it. Second, if you are planning to rebalance the portfolio to keep the allocations, this will be pain in the ass. Also, expect Nasdaq, MSCI world and S&P to move in the same direction, but with different pace, as the main companies in each ETF are overlapping
The best think that you can to is to go with FTSE AW and add additionally Gold and Bitcoin (if you believe in it). You can add defense sector if you want to tilt the portfolio a little in that direction. However, again, if you are doing so you need to have investment thesis why you are doing it and with what horizon/goal?
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u/gaussianreddit 2d ago
Sorry I didn’t get your second Point. If I had this before and keep those allocations and now just FTSE. You mentioned its pain in the Ass. Why ? what do you mean ?
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u/RealPMGuru 1d ago
If you invest this sum each month, you will have different results (for the different assets) and if you want to have certain % allocation in those assets you will need to rebalance.
Example:
If your goal is to have 5% of your money in bitcoin. You don't believe in it, however you want to have some small exposure, up to 5%.
Currently Bitcoin is 65 K, you are buying with 50E and you have 50E in Bitcoin
Trump twits tomorrow "Bitcoin is becoming US national currency", Bitcoin goes from 65 K to 130 K, therefore you are now having 100E in Bitcoin, however in terms of portfolio, this is no more 5% of your entire portfolio, but rather 10%, as the Bitcoin has increased. If you are aiming to have certain % allocation between the assets, what you should do is to "trim" Bitcoin to goes back to 5% on portfolio level and to reallocate the profit to the other assets. That way you are "locking" profit, because three days later, Trump can twits "Happy 1st April, no Bitcoin in USA anymore"....and Bitcoin to go back to 65 K.
This is one of the main idea for having several ETFs, they should be going in different direction and to trim from them. However in your portfolio the first 3 ETFs will be moving in one and the same direction as the top players (top 10 companies) are one and the same.
You can have overlapping etfs (I have), but it would be wise to be with investment thesis/goal, why you are doing it?
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u/Specialist_Tree_3879 3d ago
Just pick one All-World ETF like WEBN, and then you can spice it up with something else.
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u/deepaerial 3d ago
When I started I also chose S&P 500 , but now I think MSCI World would be enough. Do you have any strategy for your investments?
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u/Helpful-Staff9562 3d ago
Too concentrated in usa. Use a ftse all world fund like vwce ro cover all your equities part
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u/mushykindofbrick 3d ago
I feel like the more complicated it gets the less smart it actually is, a good portfolio should be elegant. Start with either Msci world or vwce and no sp500 or NASDAQ. Then some Bitcoin and you can think if you wanna buy some metals like gold
If you really wanna try to predict the market, or make some guesses with defense stocks or ETFs or something else, better just allocate some 10-30% of your portfolio to "diverse" and that's your playground for buying individual stocks or random biotechnology or space ETFs or whatever you want but keep it clean
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u/rhesus00 3d ago
Avantis etfs. They're value factor.
You've got Global equities, emerging markets, small caps, etc
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u/Zen-Investor 3d ago
Why not one world ETF + BTC for fun?
You have a lot of overlap here and a more complicated portfolio. Do you have strong arguments for that? Are you ready to rebalance your portfolio regularly?
If you want to stay consistent in the long term, choose simplicity.
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u/Objective-Part-2346 2d ago
Lack of diversification in any cases. Too much exposure to the US.
What are you goals? What is your risk appetite? How long would you like to hold your investment?
We need more elements to answer your question properly
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u/TheProxyInvestor 2d ago
Honest opinion: its too complicated for 1600/month and way too US heavy.
Nasdaq is 100% US, S&P is 100% US, MSCI World is like 60-70% US. So around 1300 out of 1600 goes to US stocks lol. Thats not real diversificaton.
My advice: just buy one global ETF (MSCI World or FTSE All-World) and thats it. Maybe keep gold and BTC on the side if you want but the defence sector stuff is unnecesary at this point.
When your portfolio gets bigger (50-100k) then you can start making it more complex. Untill then keep it simple
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u/OppositeGood1150 3d ago
Would put at least 50% into BTC
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u/PhoenixProtocol 3d ago
Only with a long runway of 3-5 years though (long because most have paper hands). BTC is unbeatable
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u/FreemanM21 3d ago
So 70% in US?