I will invest into ETF on a regular basis. In the past i was investing every month in funds. I cannot invest at the same frequency because my monthly amount of cash to be invested is too small. I plan to invest once or twice a year following the same methodology i followed i was investing in funds.
Introduction.
The FSMA (Belgian regulator) supervises management companies of undertakings for collective investment. UCI management companies must obtain an authorization from the FSMA in order to carry on their activities.
To protect the consumer, the FSMA ensures that each fund publishes a Key Investor Information Document (KIID).
The KIID includes, in particular, the fund’s investment strategy, its objectives, risks, costs, risk profile, etc.
Without these documents the funds or ETF are not available to the the Belgian consumer. This is the reason why Belgian investors have a small subset of ETFs available
Source : FSMA , for the full FSMA article clic here
What portfolio do i want ?
Let’s make it short, my main portfolio is concentrated on Belgian Real Estate and some financial securities. I want my ETF portfolio to be more diversified and oriented « income ». more diversified means being exposed to the american and european market. And if the diversification is wider it is even better. In my point of view the balanced income portfolio should be :
- 40 % Bonds,
- 20 % Real Estate,
- 20 % Dividend Aristocrats,
- 20 % Index to ensure growth.
First ETFs selection.
I want to build an income ETFs portfolio with securities i do not want to manage. These are mainly bonds securities. The foreign real estate ETFs allow me to diversify my real estate portfolio at low cost. The main reason to invest in real estate through ETFs is the small size of my portfolio. Dividend aristocrate is a new way of thinking and i need experience. I will also add a world index for growth. This allows me to be more diversified while reducing fees.
| Ticker | Description | MorningStar | Cost |
|---|---|---|---|
| IBCX | Euro Corp Bonds | *** | 0,12 % |
| USHY | US Corp Bonds | **** | 0,40 % |
| USIG | Bonds | * | 0,25 % |
| VECP | Euro Corp Bonds | **** | 0,38 % |
| VUCP | US Corp Bonds | **** | 0,35 % |
| SPYD | US dividend Aristocrat | ***** | 0,30 % |
| SPYW | EUR dividend Aristocrat | ***** | 0,40 % |
| CSGOLD | Gold Index | 0,30 % | |
| CW8 | World Index | ***** | 0,12 % |
| IDUP | US Real Estate | **** | 0,09 % |
| MUAT | World Real Estate | *** | 0,30 % |
| MWO | World Real Estate | *** | 0,20 % |
| SPYJ | World Real Estate | *** | 0,12 % |
| TRET | World Real Estate | *** | 0,40 % |
| SWRD | World Big cap | 0,45 % |
Final choices for my portfolio.
| Ticker | Description | MorningStar | Cost | Weight |
|---|---|---|---|---|
| VECP | Euro Corp Bonds | **** | 0,38 % | 20 % |
| VUCP | US Corp Bonds | **** | 0,35 % | 20 % |
| SPYD | US dividend Aristocrat | ***** | 0,30 % | 10 % |
| SPYW | EUR dividend Aristocrat | ***** | 0,40 % | 10 % |
| CW8 | World Index | ***** | 0,12 % | 20 % |
| TRET | World Real Estate | *** | 0,40 % | 20 % |
Portfolio valuation
| Ticker | Price | Value | PNL % | Weight |
|---|---|---|---|---|
| CW8 | 274,60 € | 243,18 € | -11,44 % | 22,44 % |
| SPYD | 47,41 € | 39,15 € | -17,41 % | 18,06 % |
| SPYW | 21,81 € | 17,19 € | -21,20 % | 11,10 % |
| TRET | 38,03 € | 28,09 € | -26,14 % | 23,33 % |
| VECP | 52,57 € | 50,16 € | -4,58 % | 13,88 % |
| VUCP | 49,62 € | 48,50 € | -2,27 % | 11,19 % |
Last update April 3rd 2020