ETF Finally Drops: Is Buying The Dip Always A Good Idea?
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- Опубліковано 6 тра 2024
- 🇪🇺 Best broker in Europe (ETFs): angelo.fi/ibkr
For the first time since October, ETFs finally pulled back in price! Should you always buy the dip when the stock market goes lower or do you need to be cautious?
Let's also review how my investments in ETFs, P2P Lending and crypto performed in April 2024 and my current 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
📌 Robocash: 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)
🎥 Retire Early in Europe: A Realistic Goal? • Retire Early in Europe...
🎥 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.
Did you buy the most recent dip?
🇪🇺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
Great advice!
Your channel and videos have been really great and helpful as I first started investing.
Angelo, thanks for the great content as always. Curious... What will it look like when you retire? I'd love to see a video with this scenario as if you were already retired.
Hi Angelo, thank you for the great content.
To begin with, I am a newbie on ETF investment...I am currently dividing my investments into 82.5% VWCE and 15.5% SMH...however, after watching some of your other videos and reading online, I was left wondering If it was not better to sell my SMH EFTs and substitute them for VFEA ones. I am not sure if you will answer this question but do you consider SMH a much higher risk than VFEA in the long run (15-20 years is my plan)?
Hi Angelo, thank you for your work with the videos, have been learning a lot. What are your thoughts in Bonds, do you have them in your investment portfolio, in what situations do you recommend them?
VWCE forever ❤. I bought 3 shares last month ;)
Hi Angleo, I live in Portugal and I have an account in IBRk and I'm going to move to another country because of my job
Is hard to change the country in the broker or is better to create a new one?
Of course it dips, I started to buy VWCE in March :)
Jokes aside, as I plan for the long run, these bumps are not something I have to worry about.
Hi Angelo, what do you think of a retirement strategy where you have 1 or 2 globally Diversified etfs that pay a good dividend of more than 4% and also have a bond etf to mitigate risk and to raise average dividend yield of the portfolio to more than 5%. My thought is that with dividends you can choose whether to reinvest or withdraw, which sounds good to me for retirement.
Great content...would you trust Revolut for savings and ETFs?
Thank you! Revolut doesn't allow you to transfer your shares, so I don't consider it a good alternative to Trade Republic or Interactive Brokers
Hi Angelo. Are you using Trade Republic to invest in the FTSE All World ETF? How do you find the fees on Trade Republic? Thanks again.
Yes, I use both Interactive Brokers and Trade Republic to buy the FTSE All-World each month. The fees are great, a flat 1€ fee for direct orders and saving plans are commission-free.
Hey Angelo, thanks for the awesome video, what is your thought on investing in investing in retirement and saving plans provided by banks which offer fiscal benefits and that mimic in some percentage "stable" etfs, Im not sure how these plans work in Austria but in Portugal theyre seen as good options depending on your investment style.
Thank you Lucas! Sadly you get ripped off with high fees and subpar, expensive funds most of the time with these products, so you'll most likely be better off just buying & holding low-cost ETFs yourself. At least that's how it is in Austria
Thank you for your answer!@@AngeloColomboFi
@@AngeloColomboFi Exactly the same in Portugal. Most of those investment funds will charge between 1.5%~2% active management fee, and still won't beat markets. Their only advantage they have is lower taxes when selling (8% vs 28% for ETF). However in the long run I do not think the lower tax will be enough to justify it.
Hey Angelo, loving the content and really like your investment philosophy. I was curious, have you thought about at some point choosing another global etf on the side from VWCE for diversification purposes, and not keep all the eggs in the same basket? I think if Vanguard ever has financial troubles I would imagine we’re in for a system collapse everywhere haha. But I was curious, ever thought of doing SPDR ACWI IMI or a MSCI world as well, which would fall in your global etf strategy on the side? Any chance you’ll make a video on commodities? And last question, what do you think of small cap? All the best, and keep the videos coming! VWCE and chill ftw.
Angelo why dont you have bond as part of your portfolio, with e.g. a 60:40 ratio? Can you do a video explaining this decision?
I'm 34 years old and have a higher risk tolerance. Also, 60:40 has not worked out too well over the past few years, I'd much rather keep 10-20% on a high yield savings account (especially at 4% interest right now) in cash if needed.
lol2 how can you have bonds? do you know bonds are?
I only just started investing (pure SPDR MSCI ETF) and honestly I actually love it, stuff going down just means I'm buying cheaper than I otherwise would have.
Angelo tour advice is needed…. Is it better to invest 10k at once or add every month a certain amount into an etf? Thanks
Statistically it's better to add everything at once because the global market always has a positive expected value. However you expose yourself to the risk of running into a strong correction right after you've invested everything all at once. If there is a chance that makes you uneasy or even sell out at the lows, there is nothing wrong with stretching your investment over a few months. The difference in (average) returns is probably negligible over your entire invesment career.
I did buy the recent dip. Why not VWCE went below 114€, so i bought it. If you can actually get the dip it isn't a bad idea.
Thank you so much for your video! I'm 23 and looking to invest long term (10,20 + years), every month, in the FTSE All world (VWCE). Do you think Trade republic is a good choice to do so? Or should I use an 'older' more 'reputable' platform ? Thanks!
My pleasure! Yes, Trade Republic is a great option to invest long-term. You can always transfer your shares for free if you ever feel like changing to another broker in the future for whatever reason.
Buying the dip is the Heresy of Market Timing.
For 99% of investors, you should be blindly buying the index whenever you have money on hand.
If you happen to buy it during a dip - great.
If you buy the peak and it drops immediately afterwards - whatever.
As long as the stock (or more realistically, the ETF methology) is sound, just keep buying. You cannot time the market. Don't hold off investing waiting for the dip. Don't invest money you didn't have, in order to buy a dip. Don't leverage just to buy a juicy dip. Just keep buying like a machine, and you'll do OK over time.
Is that dollar cost average, right?
@@patcherandpatch It is, although according to some research cited by Ben Felix (look him up on YT) lump sum investing is superior to averaging.
However, since you are accumulating money gradually, paycheck-by-paycheck, once you invested all your savings, you will be averaging by necessity.
So, basically, just invest as much as you can, as soon as you can, into a diversified ETF, and sell as late as you can, and only as much as you need. (To put it very short: you're ready to sell when your diversified portfolio reached a net worth where you can live off 5% of it for an entire year. At that point, sell 5% every year.)
Hands down, this is the most valuable & beautifully written investing advice I have read in my life, it sums it all perfectly... thanks bro!
You can do both. You can keep DCA, and invest extra during dip. If you do that, it is not market timing. Only if you hold the funds waiting for the dip. At least, it is my understanding.
@@davidlguerr The extra you invest during the dip had to come from somewhere. You were holding it waiting for a dip, or you were investing it somewhere else, or you were saving it up for something. In any case, it is market timing.
Now, don't be too hard on yourself. It's OK to sin a little. If you're saving up for discretionary spending, let's say a gaming rig, and the market dips, it's OK to postpone discretionary spending and invest instead. But this is still market timing and it's still highly speculative. It is entirely possible the market will keep dipping for 6 more months. In which case it would have been better to just buy the gaming rig and invest at the bottom 6 months later.
The only case where market timing might reliably work is if you have access to safe, very high yield fixed income securities. Which is basically never. But theoretically, if you have ~15-20% annual yields on government bonds or other very safe bonds or p2p loans, then statistically they _should_ outperform the market, and should be bought instead of stocks until their interest rates drop. But in the end, you still don't know (the market could end up rallying some ridiculous 30% for the few years with high bond yields). And note that any lending, even government bonds have a nonzero chance of a total wipe-out. (I mean, so do diversified ETFs, technically, but that's even less likely than a first world country defaulting imho).
Hi Angelo, thank you for you great contents, a couple of moths ago I started going down the rabbit hole of ETF investing and I can say that I have decided to invest in some of these products. I believe I planned everything, from which type of ETF, to the markets and diversifications, from which broker to use to which indexes to track. Only one little thing is missing, and even if I searched for all over the internet I cannot seem to find this information.
Given an ETF, and the currency I want to use, based on what should I decide on which stock exchange to buy it? Other than the fact than:
1) some are cheaper than others
2) some are more liquid than others
For example, if for some reason want to buy an ETF in USD, and is available in that currency from London Stock Exchange, and a Swiss Stock exchange, there are any reasons (other than price and liquidity) to choose one over the other?
In my specific case Iam based in Italy, but I believe that this question could be interesting for all European Inverstors.
SXR8 DCA and chill 😊
Do you think the 4% interest rate offered by Trade Republic will come down over the next few months? Since the ECB has signalled they will cut interest rates this Summer
Yes, it will definitely decrease to whatever % the ECB lowers interest rates to when that happens.
And also T212 4.2% as well. However T212 are investing some of the funds in QMMFs to compensate.
Great video! And it's slightly off-topic, but: Has anyone else noticed that Trade Republic slowed down the rate at which they hand out their cards? My rank in the waiting list used to decrease by 30k per working day, now it's down to 8-10k per working day... I was hoping to get mine this month, but now it seems like it might take till July.
I know a lot of people who have gotten or were able to order theirs recently, so they might be a bit behind on issuing new cards. Hopefully you'll get yours in the next few weeks as well! There is no point in wasting time looking at the rank :)
Hi Angelo, great video as always. A small question from me; I save around 800 eur monthly in retirement monthly contributions. I have some more money now, and i was wondering if i should increase my pension monthly to 1k eur. That way, im getting and maximizing all the german government pension account benefits. Or i should use my broker. Like start adding money to my broker account (@ 0 eur currently). Or keep holding cash and wait for a bigger dip?
1. if benefits are giving you guarantee return - then its obvious
2. rest into private pension schemes
3. what do you know that world doesnt to wait for a dip?
Here's my personal take (not financial advice): My problem with making additional payments into the pension system in Austria/Germany is that the system as it stands is clearly unsustainable and nobody knows what it will look like in the future. Even though I'm forced to pay a lot into it in Austria every month, I'm not counting on receiving much once I reach official retirement age, so I personally prefer building my own retirement portfolio using ETFs which I have full control over.
Hi Angelo, thanks for the great content it's very useful from a European perspective! Since I am no stranger to Austrian tax statements and file them every year anyway I thought I can just as well go with a not 'steuereinfach' broker such as Interactive Brokers (btw- thanks for your broker comparison - I wish I came across your content far sooner that would have saved me a lot of research time ;-). May I ask you if you find the tax reports from interactive brokers conclusive enough as a basis for your tax statement or am I better off with reports from i.e. traderepublic? I do consider IB superior and really like it once you get used to it, but I heard mixed reports about the usefulness of the tax reports. Your opinon is highly appreciated, thx much Babs (P.S. congrats on being a Dad, your daughter is precious :-)
The tax reports issued by Trade Republic are definitely a lot easier, since they also contain what you need to report for Accumulating ETFs and they raise the fictional purchase price accordingly in the report. Reports on IB will only be enough if you're dealing with single stocks/dividends. If you're dealing with a single ETF like me it's manageable, but it's still some extra work (incl. tracking in Google sheets/Excel for the future) each year.
Thank you, she sure is :)
@@AngeloColomboFi Thx so much for your prompt and detailed response, awesome! 😀
I am mostly in crypto so a -3% in a month is basically flat for me
Angelo for your FTSE ETF, do you follow a DCA strategy?, If so, you invest monthly in a certain day (i.e. the 1st of every month) ?
Yes, we have saving plans (recurring investments) at the start of each month. The exact day doesn't matter - generally speaking, the sooner the better. I also buy more shares at random times after I receive other payments throughout the rest of the month (I'm self-employed).
@@AngeloColomboFi Best day to invest is today, and second best is tomorrow 😄😄
Hi Angelo. I live in Greece and i want to open an account where i will be able to buy all the well known UCITS ETFs. I am aware of the degiro in Ireland solution. Can you please confirm/check if there is a similar solution for the trade republic? I know that you will give me a positive answer only if you are 100% it is safe and with no drawbacks!
Thanks!
Yes, Trade Republic is an excellent, safe option, that's strictly regulated in Germany. You can get all of the same UCITS ETFs there. In addition to Interactive Brokers it's the broker I use the most!
@@AngeloColomboFi thanks for answering. What's your opinion about PFOF that Trade republic does? Aren't you worried? Aren't you paying higher prices for the ETF you regularly buy?
No you don't, I compared this myself several times when buying VWCE on IBKR (no PFOF) and Trade Republic at the same time. For most ETF investors (me included), PFOF likely has more benefits due to the lower costs than downsides. The L&S Exchange used by Trade Republic even guarantees that execution prices aren't worse compared to the largest exchange in Germany XETRA during its opening hours (9-17:30).
Apart from that, you can always place limit orders as well, that way your order only gets executed if it reaches your target price.
What do you mean dropped? I am up 1.59% this week.
The dip is already over. As far as dips go, it was about as tame as it gets.
UA-cam videos take a while to put together though, so the market just recovered before he got the video out.
@@TomsPersonalFinance makes sense
Yeah, I had to switch up the topic for my monthly video a few times as the market recovered so quickly 😅 Next time I'll try to get it out sooner, this time my daughter needed more time :)
Ultimately I decided to put a spin on it by discussing if buying the dip makes as much sense with single stocks as it does with market ETFs.
@@AngeloColomboFi no problem. Didn't want to be an asshole I just thought for a second that I'm doing better than the market 😂
Hi Angelo, I’m currently buying bitcoin as a small section of my weekly investments on TR. With TR as you know, you can’t receive or move crypto. Do you see a potential problem with that, rather than using an exchange an storing my bitcoin in a hard wallet? Im buying bitcoin from an investment standpoint, not really to use it as a currency (like almost anyone I guess).
Also I’d like to know if possible what makes you invest in etherum as well rather than just bitcoin. To me, its centralised nature makes it riskier and less desirable, but Im curious to hear your opinion :)
Hi Sean, I don't see any issues with it for anyone that just wants to add some crypto exposure and have it all easily accessible and secured within a brokerage account.
A Bitcoin - Ethereum split has performed very well since 2017, so I like owning both, but if I had to pick one it would definitely be Bitcoin. Ethereum is definitely (even) riskier in my opinion.
Where is the dip?
The market recovered before I was able to get the video out 😅
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PLEASE PELASE PELASE Answer Angelo First : "I like how you love your wife she is lucky :) I bought 20k Euros (VWCE) ''all my life investement '' for 5 years at 90.01 EUR. I hope that I got a good price."
Why invest in p2p for 11%-12% if you can get them buying ETFs? There is no risk premium, its unwise.
what is p2p?
You certainly don't have to, there's a reason why I focus on ETFs on this channel and why they make up 80% of my investments. P2P is just for a bit of diversification (there will be periods when stocks don't perform as well) and extra cashflow, for people that are interested in the asset class.
I generally expect 7% p.a. from my ETF investments long-term, but it's true that my ETF portfolio averaged >11% p.a. since 2017, which I'm very grateful for 🙏
@@AngeloColomboFi
When ETFs won't perform well p2p won't do better either. There is no need for overdiversification, you may relay on cash for 3 years of living in savings accounts in banks.
@@AngeloColomboFi
Relay on bank savings accounts cash for 3 years of living, you don't need overdiversification. When ETFs will go down, everything will, except for cash.
sell your Ethereum and buy bitcoin
All crypto is a nothing !! If Buffet says stay away, I'm staying away !!
that makes no sense
@@NS-pt9rrit’s nothing, but the gains are worth a small risk.
@@EnjoyPlantPowerwhat gains? It goes up and down. Its all speculation. To make any money you need to trade it, and get the timing right.
@@NS-pt9rr buffet says sell your jeans, you sell your jeans?