How it works: Invest in shares with a few ETFs

The stock market can be somewhat confusing for beginners. Over the last few decades, we and many investors have gained insights that provide guidance and simplify investing in shares. We are guided by this.

Sleeping well is important, even when the stock markets are rumbling.

Who wants to worry if a sack of rice falls over in China, but the stock markets are still going strong? Returns always go hand in hand with risk, This is why a broad spread of risk is needed, i.e. diversification across different asset classes and markets.

Money shouldn’t be too much work.

Do you feel like constantly worrying about your money? To think about whether horse A will run better than horse B? Hardly, otherwise you might already have horses in the race. That’s why you need simplicity (less is more) and automatisms that do the work for you. Und jeden Tag zu schauen, bringt bei einem langfristigen Horizont nur eins: Aufregung und unnützen Aufwand, denn morgen sieht die Welt wieder anders aus.

It should be cheap, because my money should work for me and not for others.

Because the compound interest effect of the fees saved works for your assets. That’s why you need a low-cost custody account provider and simple products.

Now is good.

Even professionals are unable to find the right time to buy and sell over long periods of time. When they can’t do that, you can do it easily, right? So choose an investment mix that suits you and stick to it. Kümmere dich nicht um die Frage, ob jetzt oder doch lieber nächster Monat oder in einem Jahr der richtige Zeitpunkt ist, mit dem Geld anlegen anzufangen. Jetzt ist okay. Anpassen kannst du deinen Anlagemix jedes Mal, wenn du später weiteres Geld anlegst. Dann investierst du einfach in die Anlageklasse / oder den Markt, in welchem du das Portfoliogewicht erhöhen möchtest.

To start with, your investment mix for the equity component of your portfolio could look like this: 70% in a global ETF and 30% in an emerging markets ETF. This allows you to participate in the growth opportunities of emerging markets. With this simple equity mix, you are fairly well and inexpensively diversified in the equity asset class for a long-term investment.

The catch with the simplicity of two ETFs: Europe is underweighted as a region because the MSCI World is dominated by the US market as the largest capital market. You can change this with three ETFs by allocating your investment amount to 50 % MSCI World + 20 % MSCI Europe + 30 % MSCI Emerging Markets.

This results in roughly the following regional distribution: North America 32 %, Europe 31 %, Pacific region 7 % and emerging markets 30 %. Within the European region, you can focus on a broad market investment (such as with an ETF on the MSCI Europe or Stoxx Europe 600). If you want to focus on equities in the eurozone instead, choose an ETF on the MSCI EMU index (EMU stands for European Monetary Union), which comprises around 250 companies. Alternatively, you can take on more risk and return potential by focusing on the 200 smallest of the 600 largest European companies; you can then choose an ETF on the Euro Stoxx Small Index.

In concrete terms, this can be implemented with the following ETFs. All of the following ETFs report their fund income to the Swiss Federal Tax Administration and are tax-simple. Both distributing and physically replicating and physically replicating with optimized sampling.

Source: justetf.com / etfinfo.com, May 2018. The overview is not a recommendation or invitation to buy individual products.

Last update: 24.11.2024 18:51