gtdispomed9093
New member
Hey everyone,
I have been looking into the new Finpension Wealth management product.
My investment strategy is "Buy and Hold". An initial large lump sum and then yearly smaller deposits.
I am well aware after reading blogs and posts on the internet of the general consensus that the best option financially would be to use IBKR and "VT and Chill" or some similar world ETF.
However, I would like to:
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With all this in mind my idea was to create a VT - VWRL "clone" global portfolio using the ETFs available through Finpension.
Here's what I did and the results:
Analysis of VT ETF:
Finpension Suggested Portfolio at 100% Global Equity:
Fund Name
Strategy (%)
iShares Core S&P 500 UCITS ETF
66.0
HSBC EURO STOXX 50 UCITS ETF EUR
10.0
iShares Core MSCI EM IMI UCITS ETF USD (Acc)
10.0
Xtrackers MSCI Japan UCITS ETF 1C
6.0
Vanguard FTSE 100 UCITS ETF
3.0
iShares Core SPI® ETF (CH) CHF (Dist)
2.0
HSBC MSCI PACIFIC ex JAPAN UCITS ETF
2.0
Adjusted Portfolio to Match VT and VWRL: I slightly adjusted the Finpension portfolio to better match VT’s and VWRL’s global diversification:
Region
ETF
Allocation (%)
North America
iShares Core S&P 500 UCITS ETF
62.0
Europe
HSBC EURO STOXX 50 UCITS ETF EUR
12.0
Vanguard FTSE 100 UCITS ETF
3.0
iShares Core SPI® ETF (CH) CHF (Dist)
2.0
Asia Pacific
Xtrackers MSCI Japan UCITS ETF 1C
7.0
HSBC MSCI PACIFIC ex JAPAN UCITS ETF
3.0
Emerging Markets
iShares Core MSCI EM IMI UCITS ETF USD (Acc)
10.0
Cash
-
1.0
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Calculated TER: Then I went ahead and calculated the Total Expense Ratio (TER) for the adjusted portfolio:
Sector Allocation for Finpension Global Market ETF: I then calculated sector allocation. Here’s an example of my calculations for the Technology sector:
I repeated this process for each sector to get the aggregate allocation which is the following:
Sector
Weighted Allocation (%)
Information Technology
23.44
Financials
14.80
Healthcare
10.39
Consumer Discretionary
12.31
Industrials
10.21
Communication Services
6.80
Consumer Staples
6.20
Energy
4.30
Utilities
2.52
Real Estate
2.61
Materials
4.13
___________________________________________________________________________________________
Number of Stocks for Finpension Global Market ETF: Given the provided ETF holdings:
To estimate the unique stocks, assuming a 20% overlap (not sure if this number if correct):
Summary:
Attribute
Finpension Global Market ETF
VT ETF
VWRL ETF
Total Expense Ratio (TER)
0.085%
0.07%
0.22%
Total Number of Stocks
~3,034
~9,400
3,666
Regional Allocation
North America
62%
~60%
61.6%
Europe
17%
~18%
18.1%
Asia Pacific
10%
~12%
11.4%
Emerging Markets
10%
~10%
8.9%
Sector Allocation
Information Technology
23.44%
22.0%
26.0%
Financials
14.80%
15.0%
14.6%
Healthcare
10.39%
13.0%
10.8%
Consumer Discretionary
12.31%
12.0%
13.7%
Industrials
10.21%
11.0%
13.2%
Communication Services
6.80%
8.2%
2.7%
Consumer Staples
6.20%
6.8%
5.5%
Energy
4.30%
4.6%
4.8%
Utilities
2.52%
3.0%
2.9%
Real Estate
2.61%
2.8%
2.3%
Materials
4.13%
2.9%
3.5%
I would love to hear your thoughts on this adjusted portfolio. Obviously it is much closer to VWRL than VT with a lower TER. Any thoughts, suggestions or improvements?
Thanks in advance for your input!
I have been looking into the new Finpension Wealth management product.
My investment strategy is "Buy and Hold". An initial large lump sum and then yearly smaller deposits.
I am well aware after reading blogs and posts on the internet of the general consensus that the best option financially would be to use IBKR and "VT and Chill" or some similar world ETF.
However, I would like to:
- Avoid the complexity (and possible mistakes) of IBKR since I am a non-expert in finance. I have created a demo account with them and found the tools overwhelming for a novice like me
- Avoid US-Domicile ETFs for issues with US-Estate Tax in case of death. I know that there is a Swiss-US agreement, however since I am a Swiss-Resident but EU-citizen I am not sure of the specifics and what applies in my case. Even if this is not a problem, my heirs would still need to report everything to IRS in a timely matter with a certain form that might be tedious and expensive
- Use a Swiss provider/broker for optimised Tax-paperwork and (hopefully) better customer support.
___________________________________________________________________________________________
With all this in mind my idea was to create a VT - VWRL "clone" global portfolio using the ETFs available through Finpension.
Here's what I did and the results:
Analysis of VT ETF:
- Regional Allocation:
- North America: ~60%
- Europe: ~18%
- Asia Pacific: ~12%
- Emerging Markets: ~10%
- Sector Allocation:
- Technology: ~22%
- Financials: ~15%
- Healthcare: ~13%
- Others: Consumer Discretionary, Industrials, etc.
- Regional Allocation:
- North America: ~61.6%
- Europe: ~18.1%
- Asia Pacific: ~11.4%
- Emerging Markets: ~8.9%
- Sector Allocation:
- Technology: 26.0%
- Financials: 14.6%
- Consumer Discretionary: 13.7%
- Industrials: 13.2%
- Healthcare: 10.8%
- Consumer Staples: 5.5%
- Energy: 4.8%
- Basic Materials: 3.5%
- Utilities: 2.9%
- Telecommunications: 2.7%
- Real Estate: 2.3%
Finpension Suggested Portfolio at 100% Global Equity:
Fund Name
Strategy (%)
iShares Core S&P 500 UCITS ETF
66.0
HSBC EURO STOXX 50 UCITS ETF EUR
10.0
iShares Core MSCI EM IMI UCITS ETF USD (Acc)
10.0
Xtrackers MSCI Japan UCITS ETF 1C
6.0
Vanguard FTSE 100 UCITS ETF
3.0
iShares Core SPI® ETF (CH) CHF (Dist)
2.0
HSBC MSCI PACIFIC ex JAPAN UCITS ETF
2.0
Adjusted Portfolio to Match VT and VWRL: I slightly adjusted the Finpension portfolio to better match VT’s and VWRL’s global diversification:
Region
ETF
Allocation (%)
North America
iShares Core S&P 500 UCITS ETF
62.0
Europe
HSBC EURO STOXX 50 UCITS ETF EUR
12.0
Vanguard FTSE 100 UCITS ETF
3.0
iShares Core SPI® ETF (CH) CHF (Dist)
2.0
Asia Pacific
Xtrackers MSCI Japan UCITS ETF 1C
7.0
HSBC MSCI PACIFIC ex JAPAN UCITS ETF
3.0
Emerging Markets
iShares Core MSCI EM IMI UCITS ETF USD (Acc)
10.0
Cash
-
1.0
___________________________________________________________________________________________
Calculated TER: Then I went ahead and calculated the Total Expense Ratio (TER) for the adjusted portfolio:
- iShares Core S&P 500 UCITS ETF: (0.62 * 0.07 = 0.0434)
- HSBC EURO STOXX 50 UCITS ETF EUR: (0.12 * 0.05 = 0.006)
- Vanguard FTSE 100 UCITS ETF: (0.03 * 0.09 = 0.0027)
- iShares Core SPI® ETF (CH) CHF (Dist): (0.02 * 0.10 = 0.002)
- Xtrackers MSCI Japan UCITS ETF 1C: (0.07 * 0.12 = 0.0084)
- HSBC MSCI PACIFIC ex JAPAN UCITS ETF: (0.03 * 0.15 = 0.0045)
- iShares Core MSCI EM IMI UCITS ETF USD (Acc): (0.10 * 0.18 = 0.018)
- Total Weighted TER: 0.085%
Sector Allocation for Finpension Global Market ETF: I then calculated sector allocation. Here’s an example of my calculations for the Technology sector:
- iShares Core S&P 500 UCITS ETF: (0.62 * 27.6% = 17.112%)
- HSBC EURO STOXX 50 UCITS ETF: (0.12 * 16.86% = 2.0232%)
- iShares Core MSCI EM IMI UCITS ETF: (0.10 * 20.6% = 2.06%)
- Xtrackers MSCI Japan UCITS ETF: (0.07 * 15.47% = 1.0829%)
- Vanguard FTSE 100 UCITS ETF: (0.03 * 1.0% = 0.03%)
- iShares Core SPI® ETF (CH): (0.02 * 2.03% = 0.0406%)
- HSBC MSCI PACIFIC ex JAPAN UCITS ETF: (0.03 * 1.25% = 0.0375%)
I repeated this process for each sector to get the aggregate allocation which is the following:
Sector
Weighted Allocation (%)
Information Technology
23.44
Financials
14.80
Healthcare
10.39
Consumer Discretionary
12.31
Industrials
10.21
Communication Services
6.80
Consumer Staples
6.20
Energy
4.30
Utilities
2.52
Real Estate
2.61
Materials
4.13
___________________________________________________________________________________________
Number of Stocks for Finpension Global Market ETF: Given the provided ETF holdings:
- iShares Core S&P 500 UCITS ETF: 503 stocks
- HSBC EURO STOXX 50 UCITS ETF: 50 stocks
- iShares Core MSCI EM IMI UCITS ETF: 2,590 stocks
- Xtrackers MSCI Japan UCITS ETF: 222 stocks
- Vanguard FTSE 100 UCITS ETF: 102 stocks
- iShares Core SPI® ETF (CH): 210 stocks
- HSBC MSCI PACIFIC ex JAPAN UCITS ETF: 115 stocks
To estimate the unique stocks, assuming a 20% overlap (not sure if this number if correct):
- Unique stocks: (3,792 * 0.8 = 3,034)
Summary:
Attribute
Finpension Global Market ETF
VT ETF
VWRL ETF
Total Expense Ratio (TER)
0.085%
0.07%
0.22%
Total Number of Stocks
~3,034
~9,400
3,666
Regional Allocation
North America
62%
~60%
61.6%
Europe
17%
~18%
18.1%
Asia Pacific
10%
~12%
11.4%
Emerging Markets
10%
~10%
8.9%
Sector Allocation
Information Technology
23.44%
22.0%
26.0%
Financials
14.80%
15.0%
14.6%
Healthcare
10.39%
13.0%
10.8%
Consumer Discretionary
12.31%
12.0%
13.7%
Industrials
10.21%
11.0%
13.2%
Communication Services
6.80%
8.2%
2.7%
Consumer Staples
6.20%
6.8%
5.5%
Energy
4.30%
4.6%
4.8%
Utilities
2.52%
3.0%
2.9%
Real Estate
2.61%
2.8%
2.3%
Materials
4.13%
2.9%
3.5%
I would love to hear your thoughts on this adjusted portfolio. Obviously it is much closer to VWRL than VT with a lower TER. Any thoughts, suggestions or improvements?
Thanks in advance for your input!