A Small Investment Plan

Hi everyone,

My plan is to create a small investment plan with 5 ETF funds to invest in on a monthly basis with 20 euro’s each.
I also want to diversify to reduce risk on the long term. This investment plan is here to stay for between 5 and 10 years.
I am thinking on the following: (please bear with me, I am a beginner)

1 ETF AEX related
1 ETF S&P 500 related
2 ETF with energy or clean energy (it’s the future)
And 1 ETF big Europe 50 related

Question, is this any good? Thoughts? Ideas? And mostly any good suggestions?

Regards,

Not if you want to have the best returns. Diversification with ETFS is a bit weird. Next to that I would never own a full Europe ETF, because Europe is still Europe. If I would invest in ETFs myself one day I would own 2 max. An all world index and sp500. If I really would take a third it would be emerging markets with a smaller allocation.

Also check the expense ratios of your ETFs before you start buying them.

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Like @Frisoke says, returns might be not the highest. Diversification might be limited because you’ll end up owning shares of companies in several ETFs, like an energy and S&P500 ETF.
I do believe in your Clean Energy though, maybe even a Global Water… People’s mindset are changing, politics and governments are actually accepting a climate change, so these ETFs could return high in the long run, maybe even in your 5 to 10 year term.
A couple of S&P500 shares, as a buffer (because it’s bound to increase) vs. a couple of high risk ETF shares (Clean Energy), might do the trick.
Thematic is probably better than geolocation. Don’t forget emerging markets such as Asia if you limit to US and Europe.

Have no idea, though, I’m interested in this topic, if anyone can concur or contradict, please!

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@Frisoke, why would you consider ETF diversification weird?

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So this is with what I came up with and to me sounds as a decent small investment plan:

  1. Lyxor MSCI New Energy ESG Filtered
  2. iShares Global Clean Energy
  3. iShares EURO STOXX 50
  4. iShares AEX
  5. Vanguard S&P 500 (acc)

These are the 5 I think are good to start with. I created the investement plan and each month an amount of 20 Euro will go into each ETF (zero order).

Is this something that is decent to start with? or is there anything I miss?, Would it be better to clear out 1 energy ETF and exchange it with for example emerging markets?

Regards.

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I imagine what he means is that ETFs are already a mix of assets, so already diversified.
Or am I wrong @Frisoke ?

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Yes correct!

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Okay, here are the 5 ETF funds I am starting with. Just how to see how it goes as a beginner. I can always swap an energy ETF out and replace it with an for example emerging markets one.
After a few months I can add separate stocks as in apple specific or shell or even a few crypto’s.

Regards.

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Good luck :crossed_fingers:

thanks

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