Finally decided on my passive income ETF portfolio!

Finally decided on my passive income ETF portfolio

It has been a while since I wrote any new posts, but this does not mean that I have slowed down on my financial aim. After this time, finally I have decided on my equity portfolio and I am happy to share with you my passive income ETF portfolio in this post. Please do not forget that this is based on what I as an EU citizen can access as an ETF portfolio.

Before we start, I like to tell you that:

  • personally I do not recommend single stocks as it is easier to either invest in mutual funds or in index ETFs and have a much better diversification done by professionals
  • personally I avoid bonds and prefer to use P2P Lending like Mintos and Crowdestate in order to diversify and invest in the debt market
  • personally I prefer index ETFs that have a low management fee and a decent to high amount of assets under management (AUM)
  • all my current investments are long term (buy and hold for 5+ or 10+ or even 20+ years if I will have to go that distance)
  • all my current investments (except single stocks) are accumulating (dividend is reinvested in the stock/fund/ETF)
  • as a European Union citizen I do not have access as a retail customer to most US funds and mainly aimed for UCITS index ETFs across Europe

Considering the above, I have adjusted my investment approach and shifted from a single stock investment into an ETF portfolio with a somewhat decent diversification. Before I show you my current target portfolio split and what I am doing in order to reach it, I will list below my single stock investments.

Venture capitalist investment (VC)

I only have one investment which I can flag as a VC and it is the biggest single stock position I have so far. The company is Etergo and I bought 13,350 shares at 0.33 EUR cents.

I am fully aware that there is no dividend for now, that I cannot easily sell this stock and that this is the highest risk I have taken on a single investment. I accept this because I like the profile and portfolio of the company. If things go good, then they might actually be the Tesla of scooters

At this point in time, I have stopped any other VC investments.

See you in 20 years on this one 🙂

Single stock investment

I bought these stocks because I actually wanted to own a piece of these companies. When I bought them, these stocks were considered as undervalued (either by me or forums/analysts which I read during my research).

What I recommend for any of you is to do the research and to find someone to teach you or something from which you can learn. The aim is to make your own mind and take your own decision. Do not let others invest on your behalf and take their fees. If you do not have time to research individual stocks and do not have the know how, then look into mutual funds or index ETFs as the fund managers will pick the stocks.

With the exception of my VOD (Vodafone) stock which is in GBP I intend to keep all my single stocks and to stop investing in them. My aim for VOD is to sell it once it reached 160 so I make a slight profit after deducting the fees for the buy and sell orders. Until then, I will wait. You can check my portfolio to see if I sold it by now.

As of 28th of July 2019 my single stocks are:

SymbolPositionCurrencyMarket Value
AAPL10USD2,078
ATVI20USD962
BMW20EUR1,375
CSSPX1USD298
DPW30EUR909
MEUD5EUR794
VOD210GBP305
Etergo13,350EUR5,340
WSML162USD836

Cash positions

All my cash positions (including my emergency fund) are either in EUR or USD. Although I do not live in an European country that uses EURO, this currency is more stable than the one I use at home.

My current cash split is simple and split between my Bank and Interactive Brokers for the opportunity funds.

OtherTargetValue% p.a.Currency
Emergency35,00035,0000%EURO
Opportunity10,0005,0000%EURO
Opportunity10,0005,0000%USD

The opportunity fund is just me keeping my cash on hand to quire more equity if the price is right (undervalued).

ETF investments

As an European Union citizen I cannot easily access US funds and some US ETFs due to UCITS. Please do not worry, this does not mean that you cannot invest, but this means that you will go into a more index ETF direction as shown in my passive income ETF portfolio. For me this was the direction I wanted to go in initially, but I also wanted to complement it with some mutual funds.

First of all it is important for you to understand what is an index and how to approach index investing. I urge you to always do the research prior to proceeding with any investments. Especially prior to proceeding with some investments that you plan for the long term and on which you base your pension or early retirement.

For me the approach is simple:

  • low fees (blended fee over my split is 0.204%)
  • accumulating (dividends are reinvested in the ETF)
  • decent size of AUM (smallest is 289 and highest is 35,283 million under management with an average of 6,700 million across them)
  • all track an index (either replicated or adjusted by the fund management team)
  • currency split between EUR and USD
  • equity split between Large, Mid and Small capitalization 
  • decent annualized return for the last 10 years and since inception (blended average of ETFs has 14.75% over last 10 years and 12.39% since inception and for the blended average of the indexes has 11.63% for last 10 years and 8.38% since inception)

Please keep in mind that all above statistics are for this point in time based on the research I did. Prior to making any investment I urge you to do your own research. There is no guarantee that historical events and trends will continue in the same manner.

It is now time to list the split, ETFs and some simple stats about them for my EU citizen ETF portfolio. You can also check my monthly statistics and passive income goals. Hopefully they will inspire you to start your financial independence journey.

 

Asset Allocation20%
TickerIWDA
ExchangeEuronext
NameiShares Core MSCI World UCITS ETF
Index trackedMSCI World 
CurrencyEUR
AuM (M)20028
Expense Ratio0.2
Anualized Return 
  Last 3y11.86
  Last 5y6.74
  Last 10y
  Since Inception9.18

 

Asset Allocation5%10%
TickerTNOWEQQQ
ExchangeBorsa ItalianaBorsa Italiana
NameLyxor MSCI World Information Technology TR UCITS ETF – Acc (EUR)Invesco EQQQ NASDAQ-100 UCITS ETF (EUR)
Index trackedMSCI Daily TR World Net Information Technology USDNASDAQ-100
CurrencyEUREUR
AuM (M)2892264
Expense Ratio0.30.3
Anualized Return  
  Last 3y23.122.94
  Last 5y21.1323.51
  Last 10y21.84
  Since Inception18.338.64

 

Asset Allocation10%5%
TickerCSSPXSPY4
ExchangeLondon Stock ExchangeDeutsche Boerse
NameiShares Core S&P 500 UCITS ETFSPDR S&P 400 US Mid Cap UCITS ETF
Index trackedStandard & Poor’s 500Standard & Poor’s MidCap 400
CurrencyUSDEUR
AuM (M)35283908
Expense Ratio0.070.3
Anualized Return  
  Last 3y13.7910.26
  Last 5y10.37.39
  Last 10y
  Since Inception13.0911.44

 

Asset Allocation10%5%
TickerMEUDEXS3
ExchangeEuronextDeutsche Boerse
NameLyxor Core STOXX Europe 600 (DR) – UCITS ETF AcciShares MDAX® UCITS ETF (DE)
Index trackedSTOXX Europe 600MDAX
CurrencyEUREUR
AuM (M)12761620
Expense Ratio0.070.51
Anualized Return  
  Last 3y7.968.08
  Last 5y5.718.08
  Last 10y15.46
  Since Inception5.719.37

 

Asset Allocation5%5%
TickerCSEMUSWSML
ExchangeSIX Swiss ExchangeLondon Stock Exchange
NameiShares MSCI EMU Small Cap UCITS ETFiShares MSCI World Small Cap UCITS ETF
Index trackedMSCI EMU Small CapMSCI World Small Cap Index
CurrencyEURUSD
AuM (M)713865
Expense Ratio0.580.35
Anualized Return  
  Last 3y10.58
  Last 5y8.4
  Last 10y
  Since Inception11.730.84

 

Asset Allocation10%10%
TickerMVOLXRSU
ExchangeLondon Stock ExchangeLondon Stock Exchange
NameiShares Edge MSCI World Minimum Volatility UCITS ETFSPDR Russell 2000 US Small Cap UCITS ETF
Index trackedMSCI World Minimum Volatility Russell 2000
CurrencyUSDUSD
AuM (M)4050513
Expense Ratio0.30.3
Anualized Return  
  Last 3y8.6511.75
  Last 5y9.34
  Last 10y
  Since Inception10.86.73

All that is left now is to proceed with the investments according with my plan for this year. You can find all my updates in my blog and I always welcome you yo check my portfolio and my monthly financial statistics.