ETF collection for passive investing, thoughts on my selection

I spent some time reading this article from IC that goes over the top 50 core ETFs for the UK market.

I have spent some time putting together a list from that collection for my own passive investing, I am wondering if some ETF experts here can give me their opinion. The collection doesn’t have a WORLD wide ETF as I dont want too much overlap.

So far, I have Nasdaq / S&P 500 / FTSE100 / EM / Japan and some bonds. I wouldn’t mind looking into getting the whole UK market instead of the FTSE100, haven’t decided yet.

Ticker Name OCF URL Weight
EQQQ Invesco Nasdaq 100 0.30% link 22.10%
ISF iShares Cor FTSE 100 0.07% link 20%
EMIM iShares Core MSCI Emerging Markets 0.18% link 14%
SJPA iShares Core MSCI Japan 0.15% link 6.20%
CSP1 iShares Core S&P 500 0.07% link 19.70%
SLXX iShares Core GBP Corporate Bond 0.20% link 18%

With the weights in place as above, just ETF is saying I should potentially get a 10.82% return with a 0.16% fee per year. Now not sure how realistic that is, but seems pretty modest.

What are peoples thoughts?

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Besides 20% on FTSE 100, on my view/tasty is too much… it looks just fine :wink:

how would you distribute the weight?

Without adding/removing anything… I would drop ISF to around 10%~12%.

but do what you feel better related to the markets that you know and had researched :wink:

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Looks decent to me but I feel the same as @laguiar I feel the FTSE is actually pretty high dusk and likely low reward. Wouldn’t allocate too much to it. As well, I don’t know you goals or current position, but I don’t touch bonds, if you have a long time horizon and aren’t too scared of volatility then you’re likely to get a better return going all stock rather than bonds
But saying that, you never know, stocks seem very overvalued right now so bonds might do pretty well

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This is a massively personal preference but, I’ll have to agree with @laguiar, once again emphasising personal preference and risk tolerance, I would not add FTSE100 at all, I have no expectations from most shares there.

If I really wanted to add UK to geographically diversify it, I prefer FTSE250 vs FTSE100

here is a comparison of FTSE100 vs 250 vs SNP500

https://tinyurl.com/y5xse9rt

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I’d add ETFs for Europe and Asia pacific. It could also be worth adding a FTSE 250 tracker.

back to the drawing board for me…im defo going to remove the FTSE and add 250 and Europe

watch this space

You won’t go far wrong following @Donald_Duck’s guide here:

hmmm this link is buggy like rest of yahoo for some reason, you have to add indices one by one to see the real chart :man_shrugging: but since i am a good guy here is a screenshot.

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after some thought I have gone with this…maybe…

I have a global tracker too…but its ESG so thought id try and do my bit for the environment

I have shares in both FTSE 100 and 250 and although I’ll continue investing with FTSE 100 I can confirm for me in the past 8 weeks FTSE 250 has performed better. Substantially better :ok_hand:t2:

edit I also hold a bond too! Playing it safer during uncertain times - which is also performing quite well (though not as well as FTSE 250 or S&P 500)

I am now just thinking of doing

SWDA - Global - 50%
EQQQ - US Tech - 20%
EMIM - Emerging Markets - 30%

Putting them all in a pie and leave it alone, just keep topping it up each month. JustETF gives me a return of roughly 10% with an OCF of 0.21% which seems a bit high but no different from just owning a global tracker.

Far from an expert but a few trackers I’ve had since June (when I first added ETF’s) and done well with despite adding to my holdings several times and reducing my % gains

i-shares Global Clean Energy (INRG)
and
VanEck Vectors Video Gaming and e-sports (ESPO)

You may see as “niche markets” but both are at or close to yearly highs but trend continues upwards for all forms of clean energy and the new Playstation and Xbox consoles are out shortly so demand will increase in this market

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I think European Stocks will rise more than the average of global stocks in the medium term (say 5 years).
So I would suggest having a EuroStoxx ETF or MSCI EMU or something. If I remember I will check what I have later.

EDIT: I see that you have a value ETF, I also invest in the European Small Cap Value ETF (and in the USA one)

Corporate or government bond? Or premium bonds :joy:

I only have one ETF and that is in eSports as I understand the Gaming Industry very well.

Personally, I am not a big fan of watching others play a game I would rather play but I know it is a big thing and eSports is watched from around the world so I can only see it getting bigger in years to come.

FTSE is value, Nasdaq is rip off, more to drop.

Now is the best time to invest in the FTSE, think outside the box.

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Agree with this, there’s a lot of negative sentiment to the FTSE at the moment, with articles claiming its performing a bit like Russia, and doesn’t have the technology stocks like the US has, but a lot of these companies are in sectors still to recover in my opinion.

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For every stock with “potential” (<- i can’t use enough air quotes for this) in FTSE100 there are 2 deadweights which will move nowhere but down. the negative sentiment about FTSE is not new its at least 20 year long, its been “value” for the last two decades…

If you’ve bought FTSE100 20 years ago, you be in net deficit today, keep in mind 20 years is a good amount of time to backtest a strategy/portfolio. This is why I advocate FTSE250 over 100 (when talking about ETFs)

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