Which ETFs to sell and why?

[sharbodie]

Hi,

Since I want to buy a house, I need some of the money from my ETFs. I just need 2.086 EUR which I want to sell from my ETFs.

Name of ETF
ISIN
Shares
Current Price
Total amount
Effective Duration
Unrealised return since inception

Vanguard FTSE All-World
IE00B3RBWM25
46.132
€104.17
€4,805.57
NA
+ €176.97/+3.82%

SPDR Bloomberg Barclays Global Aggregate Bond EUR
IE00BF1QPL78
20.456
€25.81
€527.89
6.69 years
-€47.37/-8.23%

Xtrackers II Global Government Bond UCITS ETF
LU0378818131
1.799
€200.68
€361.02
7,45 years
-€2.50 /-0.69%

Lyxor Euro Government Bond 3-5Y
LU1650488494
1.432
€140.14
€200.68
3 to 5 years?
+ €0.76/+0.38%

iShares MSCI World Small Cap UCITS ETF USD (Acc)
IE00BF4RFH31
21.468
€6.00
€128.82
NA
-€2.23/-1.70%

iShares USD Treasury Bond 7-10yr
IE00BGPP6697
12.085
€4.11
€49.72
7.50 years
-€4.72/-8.67%

iShares Global Inflation Linked Govt Bond
IE00BD8PH174
5.493
€4.43
€24.36
9,24 years
-€6.89/-22.05%

iShares Core MSCI World UCITS ETF USD (Acc)
IE00B4L5Y983
1.9366
78.58€
152.18€
NA
+ 2.18€ + 1.45%

iShares Core MSCI Emerging Markets IMI UCITS ETF (Acc)
IE00BKM4GZ66
1.2689
28.12
35.69€
NA
-4.31€ -10.78%

I just need 2.086 EUR which I want to sell from my ETFs to buy a house.

Which positions to sell and why?

View Poll

 

[janetmal]

@sharbodie I would sell whichever positions are above their target allocations to bring the portfolio back to where you want it in terms of risk.

As a side-note, I would love to hear the reasoning behind this portfolio. It seems quite messy to me.

 

[sharbodie]

@janetmal I started investing small. That's why I bought msci world and msci emerging and small caps a little. Then I decided to have 80/20 stock/bond allocation. I bought Vwce with Spdr some months. And then I noticed that Spdr doesn't have government only. The reason for government bond is to have a stomach when the stocks are down and maybe rebalance. So I bought xtrackers. And then I liked usd treasery and then I realized the duration is long so I decided with lyxor 3-5years government. This is happened since 2021 December till today with some breaks in between. What do you think?

 

[janetmal]

@sharbodie I now see how you got there, but I wouldn't keep it like that. Just sell everything except Vanguard FTSE All-World and Xtrackers II Global Government Bond UCITS ETF (maybe keep the inflation-linked bonds too if you understand how they work) and allocate those as you want. You might have to pay some taxes (I don't know where you're from), but I would just consider that the cost of learning what allocation you want. You'll have a much simpler portfolio that is cheaper to rebalance.

 

[sharbodie]

@janetmal Thank you. I live in Germany. Capital gains are tax exempt 1000eurs per year as far as I know. What should I do in that case? And what do you think 80/20 allocation, im 28 years old

 

[janetmal]

@sharbodie Simplify your portfolio slowly over a couple of years perhaps to avoid taxes?

I can't comment on your allocation, this is a personal choice based on your need, ability, and willingness to take risk.

 

[sharbodie]

@janetmal How can I avoid taxes for Germany ?

 

[janetmal]

@sharbodie If you don't sell above the tax exempt limit you mentioned previously (which I'm not confirming by the way, I don't know the German tax system), you won't have to pay any taxes. You can stay below that limit if you slowly modify your portfolio over a few years instead of doing it all at once.

 

[resjudicata]

@sharbodie Go get some help from r/finanzen

 

[bensherie]

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[guyfromdownunder]

@sharbodie Even if you sell all of the random ones, it won't add up to 2k, so you'll need to sell some VWCE anyway. If there are no fees, sell everything except VWCE and then enough VWCE to cover your needs. If there are any fees, just sell VWCE and only buy VWCE in the future.

 

[natmeister79]

@sharbodie Why would you sell the positive return ones? Keen to pay taxes?

 

[sharbodie]

@natmeister79 I'm living in Germany. And 1000eur per year are tax exempt. I'm not so knowloadgable in terms of taxation. Please let me know which make sense in this case

 

[sharbodie]

I'm using scalable capital. Do you know what would be the selling charges in that case?

 

[robertnethromik]

@sharbodie No charges.

 

[ajs1342]

@sharbodie Strongly depends on the taxation of your country

 

[sharbodie]

@ajs1342 It's Germany. And as far as I know 1000eurs are tax exempt. What would you do in that case?

 

[ajs1342]

@sharbodie Not German and I have no idea how it works there, so I can’t help you

 

[joanr65]

@sharbodie

1. Decide what you want your allocation to be going forward. 2. Sell whatever maintains that allocation while incurring lowest combination of sales charges and capital gains taxes.

Since you have some overlapping holdings (like two global stock index funds) logic would favour selling the one with smaller gains to tax.

 

[sharbodie]

@joanr65 I think 1000eurs per year, capital gains are tax exempt.

I think per sell order costs 99Cents.