My personal long-term passive ETF-portfolio
Stocks & my dividend growth stock portfolio

My Personal Long-Term Passive ETF-Portfolio

In my post “How To Start Investing?“, I mentioned that investing in ETF’s (exchange traded fund) is a good starting point for beginners and for a long-term passive investment strategy. Before I reveal my dividend growth stock portfolio, I would like to share my personal ETF-portfolio with you. I do have set-up a monthly saving plans on these ETF’s and thus invest in them regularly, regardless of whether the markets rise or fall. This is a long-term passive investment, that I plan to continue for at least 5-10 years.

In the following you will find an overview about the ETF’s, that I am investing in:

1. Lyxor MSCI World ETF (FR0010315770)

  • Index: MSCI World
  • TER: 0.30% p.a.
  • Fund size: €2,730 million
  • Listing date: 26. April 2006
  • Dividends: distributed every 6 months

2. Amundi MSCI Emerging Markets Asia ETF (LU1681044480)

  • Index: MSCI Emerging Markets Asia (focused on Asia)
  • TER: 0.20 % p.a.
  • Fund size: €1,130 million
  • Listing date: 22. March 2018
  • Dividends: accumulated

3. iShares Core S&P 500 ETF (IE00B5BMR087)

  • Index: S&P 500
  • TER: 0.07 % p.a.
  • Fund size: $32,186 million
  • Listing date: 19. Mai 2010
  • Dividends: accumulated

4. iShares S&P 500 Information Technology Sector ETF (IE00B3WJKG14)

  • Index: S&P 500 Information Technology Sector
  • TER: 0.15 % p.a.
  • Fund size: $1,739 million
  • Listing date: 20. November 2015
  • Dividends: accumulated

As you can see, I choose some ETF’s different from the ones that I recommended in my post. That is, because my broker does not charge me any order fees / commissions, when I invest in them using a savings plan. Thus, I accept a little higher TER, but will benefit from lower costs overall. Moreover, that is also the reason why I accepted that dividends will be distributed to me from my MSCI World ETF position. Usually, I prefer ETF’s that accumulate their dividend payments, in order to benefit from compound interests.

Overall, the ETF’s that I choose provide low TER’s, big fund sizes and are listed since 5-10 years in the market. Only the Amundi MSCI Emerging Markets Asia ETF was listed recently in 2018, which I choose because of the low TER. My current allocation to the mentioned ETF’s is represented in the following graph. Thus, 70% of my ETF-portfolio is invested in industrialized countries, with a bigger allocation to the U.S. market and technology sector. The remaining 30% of my ETF-portfolio is invested in developing countries in Asia.

Independent from the current economic situation, I do believe that the U.S. stock market will continue to deliver great returns in the upcoming years and will continue to outperform the markets in general. I think this will mainly be driven by tech stocks, which still have great future prospects in my opinion. Also the further depreciation of the U.S. dollar, which I have described in my previous post about “My Outlook On The Stock Market“, supports this thesis.

Due to that, I will stick to my strategy, that I have been following for quite a while now. But to manage my risks, I will reduce my allocation to the S&P 500 in the upcoming months. To do that, I will reduce the monthly investments in the following two ETF´s, the iShares Core S&P500 ETF and the iShares S&P500 Information Technology Sector ETF. Moreover, in the mid-term I am planning to add a high dividend yield ETF to my portfolio.

I shared this information with you to show you, that I am actually doing what I recommend on this website. From time to time, I will also provide an update about the status of my ETF-portfolio to you.

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