Blogging my progress

One More Toy

Hi all,

Not been much of a lurker or poster on this forum, but decided to chart my journey towards early retirement on here, maybe it would help others, or you could ask questions etc, currently work in an investment capacity so I could be able to answer any queries you may have.

Anyway, to the numbers. When I started investing first, I bought heavily into USD ETFs as I expected to move to the states, now however that seems unlikely so I have hedged my position in USD.

The three main holdings are

VTI
VXUS
BND

I have started buying euro etfs, primarily

IWDE

All with IG until DeGiro opened here. I have kept my IG account but all future purchases will be through DG


I also own individual shares, namely

Apple
Boeing
Hibernia REIT
Citigroup
Verizon

All good companies that I got cheaply in the last sell off at the end of the summer.

I will get hard figures later on p/l etc; feel free to ask any questions, or indeed share advice!

Sabre Man

How long have you been investing and what made you pick those ETFs?

One More Toy

Sabre Man wrote: »

How long have you been investing and what made you pick those ETFs?

About 4 years roughly, I picked those etfs as they gave the broadest coverage and the fees are dirt cheap!

topper_harley2

Usual note re:UCIT ETF tax issue. What do you think about 8 deemed disposal, 41% tax and no loss relief? Feel like a parrot chirping on constantly about this single issue with ETFs in Europe!

topper_harley2

topper_harley2 wrote: »

Usual note re:UCIT ETF tax issue. What do you think about 8 deemed disposal, 41% tax and no loss relief? Feel like a parrot chirping on constantly about this single issue with ETFs in Europe!

As a comparison, this my portfolio structure:

50% World Equity ETF (IWDA) - ishares msci world Acc. TER = 0.2%

17% Source EURO STOXX 50 ETF Acc. TER = 0.05%

33% Euro bond ETF (IBCI) - iShares Euro Inflation Linked Gov. Bond Acc. TER = 0.25%

Total weighted TER is
(0.5 * 0.2) + (0.17 * 0.05) + (0.33 * 0.25) = 0.191%

As you can see, a very low cost 3 fund portfolio, all accumulating UCITS ETFs.

ulinbac

Hi,

What type of yearly return are you looking for?

One More Toy

topper_harley2 wrote: »

Usual note re:UCIT ETF tax issue. What do you think about 8 deemed disposal, 41% tax and no loss relief? Feel like a parrot chirping on constantly about this single issue with ETFs in Europe!

I often feel the same, it's a big big issue unfortunately, hopefully the tax code changes soon, otherwise we will just have to take it in the chin

One More Toy

ulinbac wrote: »

Hi,

What type of yearly return are you looking for?

Hard to say. These funds will be held to retirement so over 30 odd years I'd be looking for the usual 7 percent or so

Sabre Man

One More Toy wrote: »

The three main holdings are

VTI
VXUS
BND

These all seem solid. I had a hard time deciding which ETFs to go for. They all have different pros and cons.

I looked at BND since you mentioned it, but I think I will stick to IBGM for now as it's in euros, so I won't have to consider exchange rate issues.

I also think there is less chance of an interest hike in the eurozone than in the US for the foreseeable future. If interest rates go up in the US would you buy more of BND (presumably at a lower price)?

One More Toy

Sabre Man wrote: »

These all seem solid. I had a hard time deciding which ETFs to go for. They all have different pros and cons.

I looked at BND since you mentioned it, but I think I will stick to IBGM for now as it's in euros, so I won't have to consider exchange rate issues.

I also think there is less chance of an interest hike in the eurozone than in the US for the foreseeable future. If interest rates go up in the US would you buy more of BND (presumably at a lower price)?

I havent decided yet what to do regarding the interest rate hike, obviously stocks would tumble, but USD/EUR would surge, i reckon parity is only a few months away, its really hard to say, but you are right i will have to think about it