Having doubts about my pie

Investing
#1

www.trading212.com/pies/l71PnrJp3LgNK2XKbo3c2Vp08nx6

So I’m only just starting this pie for a long term 25 year in my isa.

Adding around 3-500 a month (depends on how fun the weekends are :joy:) currently its 5% up and about 3.5k in so not too bad for moving about if needed

But I’m worried that theres maybe too much in tech (especially apple) and that their growth may not continue.

But as it’s long term invest and forget so maybe that’s ok for a few years? The momentum etf I’m hoping will track trends automatically so if tech falls out of favour it will move to what replaces it but something like eqqq is more fixed.

Thoughts anyone?

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#2

If you’re not sure about mainstream tech growth long term, you could target a specific sector in tech. For example, I doubt that growth in electric cars or healthcare innovation is gonna stop any time soon: the fight against climate change will gain traction and population is ageing fast almost everywhere. Just sayin’ :wink:

#3

This might only be me, but for something that you plan to hold for 25 years I would have gone 100% VUSA, the only reason being that you will lose a significant amount on fees with all these different ETF’s. It might not seem much, but from your entire portfolio, VUSA is the only one that could classify as low fee with 0.03% whereas EQQQ and iShares charge you 0.30% and more…

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#4

It’s a shame there’s not an inline tool where you can add your ETFs, and it would show you your geographical exposure, top 10 holdings across the lot and maybe even the fees per ETF / collective.

From a quick glance, it looks heavily weighted towards the US?

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#5

There’s a backtesting site similar to portfolio Visualizer for EU ETFs, I’m not sure if it has all that information but might be worth a look:

https://backtest.curvo.eu/

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#6

I personally won’t add 25% for the World Momentum but overall the Pie is fine :+1:
(imho)

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#7

Thanks guys the momentum etf I went for partly as I wanted some world shares for diversification and that momentum has outperformed other factors consistently . My plan was to have that split between quality and momentum but t212 hasn’t added the quality factor ETF despite a few requests.

Value seems to have had its premium automated out and not performed in decades. I felt momentum would be nice to catch the upswings as companies and trends emerge without me actively focusing on it.

It am thinking now to combine the eqqq and vusa holdings into one s&p500 tracker.

I’m a UK investor the vusa is in gbp but distributing.

The vuag isnt on t212 but vuaa as csp1 are but they are in dollars. Since t212 now shows fx influence would it be better to actually hold it in usd. As I can see the fluctuations for if I want to sell. I can look and see “ah it’s up/down due to currency not the assets” and decide accordingly. Where as vusa is more opaque to me there?

#8

Your ETFs will perform equally regardless of the currency you choose. There aren’t any exchange fees on T212 so buying in usd won’t change a thing. Good luck :slight_smile:

#9

I’ve always wondered on this point if you are less exposed to the fluctuations of the volatility of the FX?

#10

There is no difference. If you buy in your currency, FX will essentially be integrated to the price you see. If you buy in USD it won’t. The latter means that you might see a difference between stock relative performance (% in USD) and portfolio relative performance (% in your currency). However profit (absolute performance) will be the exact same at any given time. The only thing that might change - depending where you buy - are trading hours. Bottom line is there’s no way to cheat the system :upside_down_face:

#11

I know it wo not affect return but as t212 shows the fx impact now a usd one would show me say +10% fx impact-5% overall +5 but the gbp one would just show +5% .

My thinking was if I wanted to release some money I could see it’s a bad time due to the fx and maybe I should wait a little bit or sell a different asset.

Just transparency thought on that.

#12

I have around 20% of my portfolio in VUSA, I think it’s better for my mind not to see the FX impact :joy:

It’s just a physiological thing for me.

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#13

Haha true, do you hold eqqq/a nasdaq seperate or do you think combining into lower cost vusa is better?

The sp500 does have more zombies than Nasdaq 100 but targeted etfs do run higher fees.

#14

I understand. Thing is let’s say it happens. FX is against you so you decide to wait. Now FX is with you but your stock is falling. In that case, was it a good move to wait ? Maybe, maybe not. To do that right, it would required you to be actively monitoring stock and FX charts to find the perfect exit point. Unless you’re day trading it’s not worth it. Just sell your stock when you think time has come to do so. Just my opinion though.

#15

Well as they’re all etfs, if the dollar pound fx rate is bad at that time I could just sell some of the UK based assets instead etc. Trump can change the fx rate with a tweet a lot faster than he can the value of the whole sp500 :stuck_out_tongue:
The question was a random side thought anyway not really the topic I was focusing on. T212 only seems to have dollar accumulating anyway

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#16

For me personally I like the S&P as it is pretty diversified. I am a mere novice and have only been trading since June so I’m not positioned for advice necessarily as there are people more qualified than me to do so.

In principle over time they’ll both do extremely well. I depends how confident you are in picking other stocks to reduce the fees also.

I’ll add the iShares Global Clean Energy to my portfolio at some stage but that’ll probably be it for me ETF wise.

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#17

I like this one, it’s doing well for me right now.

That said… everything is doing well for me right now, other than some bond funds I have for reasons :roll_eyes: (mostly investment grade corporate bonds as gov bonds are trash right now).

#18

I keep holding off waiting for a bit of a dip but it keeps going up :joy:

#19

Only thing putting me off the iShares Global Clean Energy is the very high admin costs for it 0.65% is 3x the standard.

#20

Maybe you can create a PIE with their top 20 holdings(which should be 80%+ of the total), and have 0 admin costs.