ETF Keeps Going Up: Wait For a Drop or Invest Now?
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- Опубліковано 7 кві 2024
- 🇪🇺 Best broker in Europe (ETFs): angelo.fi/ibkr
Since ETFs are still breaking one all-time high after another, you might be wondering if you should keep investing in your favorite ETF or if you should wait in cash for lower prices or even a market crash before buying!
You might be surprised by what happened in similar periods in the past! Let's also review how my investments in ETFs, P2P Lending and crypto performed in March 2024 and if I'm changing my investing strategy. 👇 Links below!
My Favorite Brokers (ETFs, Stocks and Bonds):
🇪🇺 Interactive Brokers: angelo.fi/ibkr
🇪🇺 Trade Republic (4% interest p.a.): angelo.fi/trep
🇩🇪🇦🇹 Easiest for Germany & Austria: angelo.fi/etfs
👉 Compare ETFs & Stocks: angelo.fi/comp
My Investments in P2P Lending:
📌 Esketit (0.5% bonus): angelo.fi/esketit
📌 Mintos: angelo.fi/mintos
📌 Viainvest (1% bonus): angelo.fi/viainvest
📌 Debitum Network (1% bonus): angelo.fi/debitum
📌 Income (1% bonus): angelo.fi/income
📌 Lande (1% bonus): angelo.fi/lande
💰 All P2P deals & conditions: angelo.fi/all
Where I Buy Bitcoin & Ethereum:
⚡ Bitvavo (10€ bonus): angelo.fi/bit
My Savings Account with 1% Saveback on Card Payments:
🇪🇺 4% interest p.a. (€100K deposit guarantee!): angelo.fi/save
📈 What I Use to Track my ETFs: angelo.fi/getq
🏠 All my investments & accounts: angelo.fi/tools
Video mentions:
📌 Vanguard FTSE All-World ETF Acc. (VWCE)
🎥 Trade Republic Card: Is It Worth Getting? • Trade Republic Card: I...
🎥 ETF Investing Playlist: • ETF Investing in Europe
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Some of the links are affiliate links, which help support me and the UA-cam channel. Still, none of the links are sponsored.
Disclaimer: I am only sharing my own experience. I'm not a financial advisor and you should always do your own research and due diligence before investing. Investing involves risk of losses.
Do you think the stock market has gone up too quickly?
🇪🇺ETFs, 4% Interest & Saveback: angelo.fi/tr
🇪🇺Interactive Brokers (ETFs): angelo.fi/ibkr
👉Compare ETFs: angelo.fi/comp
📌Esketit (P2P): angelo.fi/esk
📌Mintos (P2P): angelo.fi/min
📌Debitum (P2P): angelo.fi/deb
📌Viainvest (P2P): angelo.fi/via
📌Income (P2P): angelo.fi/inc
📌Lande (P2P): angelo.fi/lande
⚡Where I buy crypto: angelo.fi/bit
💶4% interest savings account: angelo.fi/save
Hey Angelo! I have two burning questions to ask you: 1) Why choose VWRL/VWRP rather than a ~90/10 split of VHVG and VFEG to lower your TER? 2) Why choose Bitvavo over Etoro or other crypto platforms? I'm based in the UK and would like to allocate a small proportion to crypto. Any recommendations for one platform over the other would be welcome! Thanks!
Hey Thomas!
1. You can do that of course. For me, I consider my time worth more than chasing peanuts in savings, which may disappear as soon as VWCE lowers its TER again. And I like to keep things as simply as possible and always having the exact market cap allocation to developed & emerging markets via a single ETF.
2. Bitvavo has the lowest fees, you can trade everything directly in € and most importantly for me, you can move your crypto offline (eg. to a hardware wallet) anytime. Kraken would be my #2 pick by the way.
Hello Angelo! As always. Grazie mille for your clarity and perfect length of your video.
I totally agree with you. Thanks for your work
Thank you so much for your educational videos!
As the saying goes, time in the market beats timing the market.
Thanks very much Angelo 😊👍.
It’s quite normal for the market to be at or near all time highs. There isn’t really any pattern to returns based on recent rally or not so that shouldn’t really factor into a decision. That said it’s always good to think before investing anything
Great video as usual! I must confess that I have slowed my investing pace in VWCE in favor of a savings account (4% interest). It may be a mistake, only time will say, but it's true that the height vertigo is real after 5 green months... 😅
I feel like I'm watching the same video every month 😂 love the videos tho Angelo keep it up!
Haha, sorry about that - not that much has changed I guess, even though I try to find new angles and info to look at each time 😅
Yet at the same time, thank you for coming back for it! :)
Hey Angelo,
How about sitting on a larger amount (inharence) wanting to invest. Just put the cash in that I planned to, or portions of it during serveral months of time.
Sell cash covered puts. If you get exercised, you are in at a discount. Additionally you get interest on your money in your account or invested in T-Bills. You would make around 15% per year. At least.
Does this data apply to a person that wants to start investing and deploy a lump sum in the beginning, lets say 20k, then DCA month by month?
Hi Angelo, many thanks for your informative video as always. Quick question : I heared you mention that you and your wife do a joint investment strategy. As i am in the process of doing same with my partner, i am interested in how this works. I saw scalable and trade republic do not offer joint brokerage accounts. How do you achive this joint investment you mentioned. Thanks in anticipation
I will continue to DCA every month and once correction happens then use my saving to catch the opportunity
From the Elliot Weave point of view (SPY) did not see Weave 4 yet... so it might correct, sooner or later, just saying... anyway keep investing monthly.
about the TR card, every time you make a payment the cashback goes to the etf automaticly or you make a large number of payments and at the end of the month goes directly to the etf? Keep it going with these videos!!
If you pause the video at minute 04:12 you can see the saveback accumulates and then gets invested via one transaction at the start of the following month 🙏
Stonks to the MOON 🚀 🌙!
Very interesting thank you Angelo. It would be great if you could also make a video on investment strategy including commodities like Gold and Platinum?
I have recently started doing 70 20 10 ETF precious metals and Crypto. I would love to hear your perspective on this strategy
Hey Angelo! I have two burning questions to ask you: 1) Why choose VWRL/VWRP rather than a ~90/10 split of VHVG and VFEG to lower your TER? 2) Why choose Bitvavo over Etoro or other crypto platforms? I'm based in the UK and would like to allocate a small proportion to crypto. Any recommendations for one platform over the other would be welcome! Thanks!
Because for me having to buy/manage/rebalance two ETFs instead of a single one is not worth the minor potential difference in fees (which could change when Vanguard drops fees again) and I prefer keeping things as simple as possible. I prefer Bitvavo since they have very low fees, I can trade directly in € and I want to have full control of my coins (eg. be able to send them anywhere and store them on a hardware wallet for example).
Hello Angelo, I made myself an account in IBKR but I find it quite "not user friendly" as it seems a little confusing at first. My question is how do you fund your account? Do you deposit EUR directly from your bank via SEPA transfer or do you use WISE to directly fund your account? What would be the best way to avoid fees and maximizing what you get for what you pay? Thank you!
I just do a SEPA transfer from my Austrian bank or Revolut, the money always arrives the same day and the transfer doesn't cost anything. True, IBKR is not the easiest for beginners, but once you figure out the basics, it's pretty straightforward. This video might help: ua-cam.com/video/12g12UU8oPQ/v-deo.html
@@AngeloColomboFi Thanks a lot , Angelo! Regards from Bulgaria :)
if you are in the euro zone wouldnt it be better to have VWCE in EURO, to not be explosed to the USD currency? Or is it favorable to have it in USD ?
You can buy/sell it directly in EUR on IBKR and Trade Republic, so that's not an issue :)
That's just the fund currency, which is irrelevant.
Does it really matter if the VWCE is at all time high because I always buy €200 every month and if I buy it whether it is at a discount or not, if it goes up 10%, either way I will get 10% of that increase, right? Thank you
If you just keep buying every month, there will be times when you get more shares (if the market drops) and other times when you get a bit less for the same amount of money. Yes, if the ETF goes up 10% from when you buy you're of course also up 10%
I've been investing in Vanguard FTSE Accumulating however I don't see any accumulated shares? I checked everywhere, account statement but there is no extra bought share. Can you please explain how accumulating works and why I don't get the buy-back?
The share price is raised by the amount that's reinvested throughout the year when any of the thousands of companies pay dividends. You can look at the distributing version and its dividend yield to get an idea: www.justetf.com/en/etf-profile.html?isin=IE00B3RBWM25#dividends
@@AngeloColomboFi I have the same question. I also checked the distributing version. According to this table 0,35€ was paid for each share in March. So far I haven't seen any new shares in my portfolio, which should be invested back in the ETF (I started investing in February). Does the investing time play any role here?
@@SonTran-bv2vc Same I don't understand this
You don't get any new shares of the ETF itself, the value of your existing shares grows by the amount that's reinvested. With the distributing version, it drops by the amount that's paid out to your account in dividends
Angelo please do video on updated Trading 212 platform. They offer 4,2% on cash? You can stop landing shares ? And you have opportunities to transfer your portfolio to another broker? Is this real o it’s a trick?
So far portfolio transfer has only been rolled out to 40% of users and sadly the list of brokers you can transfer shares to is still very limited: helpcentre.trading212.com/hc/en-us/articles/16105401083805-Portfolio-transfers
As for the 4,2% - it doesn't come with a deposit guarantee and your cash can also go down in value, as specified in their terms and conditions. So it's not the same as what Trade Republic offers sadly.
How much do you invest on avg per month? If you can share this info 🙂
Together with my wife we've been able to invest around 4K/month lately. We're lucky to have above average income, which increased over the past few years and very low expenses :)
@@AngeloColomboFi thank you for sharing.
Also a bit worried for this long run.
I just reduced a 30% percent of my saving plan for this month to start accumulating some cash.
Maybe I will regret it at the end of the year, but let's see.
🤞
A friend of min just got her cyptos on Binance stolen. Is TR safer? If ETFs are safe there a cryptos any different? Grazie Angelo
Oh wow, that sucks. Hopefully there's something Binance is able to do. Yes, Trade Republic is definitely safer in that regard. Feel free to send her this video on IT security I've recorded, it might be useful for her going forward: ua-cam.com/video/sUgC1x67KnI/v-deo.html
Hello! Nice video Angelo 😊 Someone know the difference between USD etfs and EUR etfs? Most of Vanguard etfs (Included the irish based ones) are USD. Thanks!
Thank you! The fund currency is irrelevant, you can buy/sell these ETFs directly in € on Interactive Brokers and Trade Republic, which is what I do as well.
@@AngeloColomboFiyeah i finally got it! The thing is you will only see the amount in € and though the currency will affect the €/$ relation its already affecting it by the currency of the found (most of it in $) so basically irrelevant. The only way to protect you from this is hedging wich i think is not worth it long term. Correct me if in wrong but for everyone to know ❤
No you're right, hedging only makes sense if you strongly believe the EUR will be the best performing currency over the next few decades vs. the USD, JPY, CHF etc. which I personally doubt to be honest 😅
@@AngeloColomboFi thank you so much 😊
Do you have a common account with your wife on trade republic ? Is this possible ? Or is it on your name only ? How do you manage this ? Thank you
No, we each have our own account - also because we're taxed as individuals anyway in Austria
@@AngeloColomboFi Thanks for your answer. I asked because in the videos u say 'our cash reserves' when earning interest but then show 1 screen of trade republic (1 account) so it's still confusing for me...
Ah ok, sorry about the confusion. I do hold the majority of our combined cash reserves, but a good chunk of the uninvested funds I hold on Trade Republic is also money I need to set aside for upcoming tax and social insurance payments, since I'm self-employed.
@@AngeloColomboFi So 1 trade republic account for both of you ? under you name ?
You have wrong assumption about holding $100 in US market since 1926. You completely missing the point that companies constituting the index are constantly renewed. Index will show growth because they kick out underperforming companies. If you bought 500 companies in 1926 you will end-up loosing most of your portfolio because the majority went bankrupt, but the index will show growth because of that renewals
Fully follow your strategy. I just spice it up with crypto fixed income solutions (lending, staking, farming,…) iso p2p lending. Very interesting space (if we forget about ftx, Celsius, … and the a likes 😅)
No more lending for me, but I do stake my ETH and my small portion of SOL as well :)
I know about your strategy to invest in the global ETF since it's safer in the long run, but man, if you had invested this money in S&P 500 or Nasdaq 100, you would really boost your retirement. For me, I don't see US economy being beaten by any other county ever, so I'm all in US ETFs.
Performance of economy / GDP development has no corelation with performance of stock market. Plus there were long periods of time in the past when US stock underperformed global one. Sure that US stock market could keep its good performance - however none of the reason you gave above predicts that.
You should invest in emerging markets as well.
Then you could make the same argument for the magnificent 7 because they’re pulling the s&p500 right now.. the diversification can help you especially when the market isn’t going well
I prefer diversifying globally, as I'm not willing to risk my entire retirement nest egg on how stocks in a single country are going to perform over the next few decades. If they'll keep outperforming, then their share in my All-World ETF will increase further and I'll profit as well. You can invest that way though if that's your preference!
My only doubt was between VWCE or IUSQ. Te former has more diversification with similar results, so I made my choice. Now I'm thinking about adding a 5% gold investment.
Fun fact, buying sp500 at all time highs ONLY beats buying at all time lows. Because usually the market is growing so there will be many all time highs, with fewer large dropsbin between. So waiting for large drops ends up hurting your total return.
Stress free, DCA, and you get time to enjoy life sounds too good to be true. Math gives better returns to boring investing, but then no sensational UA-cam content.
Any fans of TLT bonds? They look like a safe investment with 20% upside when fed rates drop, till then you get 5% interest
Let me guess without looking at the video: 90% of the video we talk about the market conditions and at the end we conclude that you should consistently DCA in VWCE...
Pretty much nailed it, I do try to add a different spin and new information each time though. Where should I send your diploma? 🎓🥂
What is your World ETF of choice as of right now?
Still the Vanguard FTSE All-World (VWCE)
although i understand your logic, i am not paying these all time highs on ETF. just will park money for interest, there are better buying opportunities later in the year why pay more since i wont be selling ETF anytime soon
Growing market will be quite often on its ATH. Purely statisticaly taken you choose bad strategy,. But true is it can work in particular case:))
Managing to get in at the right time (at lower prices) is easier said than done, hopefully it works out though :)
2/3 etf is on ath
I dont underatand how these bots communicate with each other
😂
And yet Google/UA-cam has still not figured out that comments with 50 upvotes and 12 replies about fake financial advisors in record time are obviously bots that should easily be filtered out 🙄
Hi Angelo, great video as always. Quick question: whilst you invest in equities via one single ETF to keep things simple, you invest in P2P via multiple platforms which seems to overcomplicate things, no? Why not just use 1 P2P platform?
Because I'm able to globally diversify over thousands of stocks via a single ETF, while achieving something similar is quite difficult in the P2P space (different lending companies, countries, platforms, loan types).
@@AngeloColomboFiThanks Angelo. Good point!
I don’t trust the US market; I still remember the words of my economics professor in school: he compared the US market with a whale (in order for us to understand how the economical crisis started in the 20s, how War I & II affected investments etc). Basically, everyone “trusts” the US market (but history shows that most of economical crises started because of it). Basically it is more or less like a whale that deeps into the water in order to sink those who are not needed any more and then resurfaces to get air. Yes, someone can say: but they always resurface don’t they? Can you really trust your money in a market like that (all of it?) I am not confident in it (not in the long run).
I think the US will be fine long-term, but I also prefer investing globally instead of relying on a single country
I'll just leave 2 facts here:
1. Over-diversification is a real thing.
2. More volatility = more profit long term.
When it goes well then sure. If your bets are off though, you're screwed.
Most people and the vast majority of professional fund managers are unable to beat the market as a whole over the long-run. What makes you think you're the exception?
There are countless examples where more volatility did not lead to higher returns, that's why we have the sharpe ratio to measure risk-adjusted returns.
I was not trying to prove your strategy wrong, because it isn't. I'm just pointing out couple facts for people who have different apetite for risk/reward. But PERSONALLY I don't like VWCE with those fractions of a percentage in some emerging markets small caps or smth like that, I think that is overdiversification that will not lead anywhere, but hey, I could be wrong.
Alright, I get that. Appreciate you sharing your perspective!
so how much euros do you invest monthly? 🍻
Together with my wife we've been able to invest around 4K/month lately. We're lucky to have above average income, which increased over the past few years and very low expenses
Angelo, I’ve a question, are you planning to buy an apartment in the near future ? Since I’ve seen you’ve put all your money in stock market, I think many young investor would have the same doubt whether to use saving to buy a house or to invest while paying rent.