My ETF Portfolio

I started investing in Exchange-traded funds (ETFs) in 2016. From the beginning, my ETF strategy was very simple and consisted of four main principles.


My ETF principles:

  1. Low risk. Invest in slow-growing low-risk little-fluctuation slow burner ETFs. Be modest and expect annual growth of 4-6%
  2. Diversify. Invest in a maximum 4 ETFs covering global markets
  3. No trading. No panicking. Keep and hold – I am in for the long shot on a 10+ year investment horizon
  4. Keep costs low. Total Expense Ratio at maximum 0.30%
I am using a free trader account on ING-Diba for my ETFs. If you decide to open a free account on ING-Diba, it would be wonderful if you could use this referral link:https://www.ing-diba.de/depotkwk/aa/aUKCGROZnAI receive a 20 EUR referral bonus for new accounts, which supports this blog. There are no hidden costs or other disadvantages for you.

My ETF Portfolio:

  • 78% MSCI World: A physical ETF that includes shares from 1600 companies globally. Looking at the 6 year growth chart, one can easily see that this is a slowly growing, low-risk, stable ETF with an average growth rate of 4-6% p.a.
  • 18% DAX: A replicate ETF, mirroring the German DAX. Admittedly, I would no longer invest in a DAX ETF today and I am planning to sell my shares in the near future (see home country bias)
  • 4% MSCI Emerging Market: A physical ETF that includes 1100+ companies from emerging markets (including Tencent, Alibaba, Samsung).
Portfolio shareETFISINTERReplicationCurrencyDistribution
58%UBS ETF (LU) MSCI World UCITS ETF (USD) A-disLU03402851610.30%PhysicalUSDDistributing
20%ComStage MSCI World UCITS ETFLU03924945620.20%SyntheticUSDDistributing
23%Xtrackers DAX UCITS ETF Income 1D LU08387823150.09%PhysicalEURDistributing
5%Amundi MSCI Emerging Markets UCITS ETF EUR (A)LU16810453700.20%SyntheticEURAccumulating

How I started?

After I had decided that I wanted to invest in ETFs, I was uncertain about when and how to start. The best piece of advice at the time was to break the total investment amount into four equal peices (each representing 25%) and to invest one piece/quarter every three months for 12 months (4 x 25% = 100%). This approach allows to account for seasonal or temporary volatility. I did that and was confident with the decision.

Looking back, one thing I would do different is that I would not invest in a DAX ETF. I clearly became a victim of the home country bias at the time.


How I buy and sell ETFs

In order to buy and sell ETFs, I opened a free online trader account at an online bank. I chose ING-Diba as the trader account is absolutely free and more than 200 ETFs can be bought totally free. When selling ETFs, ING-Diba charges 0.29% which is the lowest I have seen on the market. More about ING-Diba and their trader account here: https://www.ing-diba.de/wertpapiere/etf/