19 votes

Should I boost my monthly ETF investments? (Europe/Germany)

Posted by milkbones_4_bigelow
Tags: ask.advice, european union, europe, germany, finance.personal, investing, money, funds.exchange traded

I know most here are US-based, but I thought I'd give this a shot.

I've been running a pretty straightforward ETF portfolio through Ergo in Germany for a while now. Here's my current breakdown:

  • 25% in iShares MSCI EM IMI ESG Screen UCITS ETF
  • 25% in iShares MSCI Europe ESG Enhanced UCITS ETF
  • 50% in iShares MSCI World SRI UCITS ETF EUR

I've recently freed up an extra €500 monthly that I'm looking to invest and am wondering if it would make sense to just bump up my monthly contribution from €1,000 to €1,500 while keeping the same allocation percentages, or should I consider doing something different with this extra cash?

For context, I've got my emergency fund covered (one year's expenses) and no debt to worry about.

I look forward to hearing your thoughts.

12 comments

  1. [3]
    Wafik
    Link
    I am of the opinion that you should stick to your plan regardless of what the markets are doing. It's boring, but if you determined this was the best plan for you, then having an extra 500 a month...

    I am of the opinion that you should stick to your plan regardless of what the markets are doing. It's boring, but if you determined this was the best plan for you, then having an extra 500 a month shouldn't change that. It should just let you reach your goals sooner or have a better retirement.

    7 votes
    1. [2]
      milkbones_4_bigelow
      Link Parent
      That's the plan in general. I in no way want to try to time the market; rather, I want to follow a boglehead approach. The question was more whether it makes sense to put the extra money into...

      I am of the opinion that you should stick to your plan regardless of what the markets are doing. It's boring, but if you determined this was the best plan for you, then having an extra 500 a month shouldn't change that. It should just let you reach your goals sooner or have a better retirement.

      That's the plan in general. I in no way want to try to time the market; rather, I want to follow a boglehead approach. The question was more whether it makes sense to put the extra money into those ETFs, or is there perhaps something else I could do here in Germany? I appreciate your reply. :)

      1 vote
  2. skybrian
    Link
    Stock tickers would be helpful for looking these funds up. Assuming I got it right, it seems a little weird to under-weight the US when that's where a lot of the growth has been. Some American...

    Stock tickers would be helpful for looking these funds up. Assuming I got it right, it seems a little weird to under-weight the US when that's where a lot of the growth has been. Some American companies are included in SUSW, but how this sustainability fund screens companies seems idiosyncratic. Why are Microsoft, Tesla, and Disney okay, but not Apple, Google, or Berkshire Hathaway?

    If you want to diversify more, that seems like the most obvious gap.

    4 votes
  3. [5]
    Plik
    Link
    With the current global fincancial climate I am not sure what the best move is. More in MSCI World might be safest. Something like SGOV would be even safer (pays out close to the risk free rate in...

    With the current global fincancial climate I am not sure what the best move is.

    More in MSCI World might be safest. Something like SGOV would be even safer (pays out close to the risk free rate in dividends each month). I am not sure if SGOV is available in the EU.

    3 votes
    1. [2]
      metoosalem
      Link Parent
      MSCI world is extremely USA heavy. There is an msci all world that is more diversified iirc but personally I’ve cashed out and am not looking back because I can not imagine this going well for the...

      MSCI world is extremely USA heavy. There is an msci all world that is more diversified iirc but personally I’ve cashed out and am not looking back because I can not imagine this going well for the foreseeable future and I’d rather have cash on hand right now if I have to make a move elsewhere.

      5 votes
      1. Plik
        Link Parent
        That's fair. SGOV or similar may be the way to go then.

        That's fair. SGOV or similar may be the way to go then.

        2 votes
    2. [2]
      milkbones_4_bigelow
      Link Parent
      Thank you for your reply. So, if it were you, would you put the additional 500 into MSCI World?

      MSCI

      Thank you for your reply. So, if it were you, would you put the additional 500 into MSCI World?

      1. Plik
        Link Parent
        I really can't say any specific ETF now, as another poster said apparently MSCI World is pretty US heavy. I think you would need to look at the holdings yourself and determine what you think is...

        I really can't say any specific ETF now, as another poster said apparently MSCI World is pretty US heavy. I think you would need to look at the holdings yourself and determine what you think is best.

        I am not even comfortable saying people should buy SPY at this point because of the absolute chaos Trump and Elon have brought to the market and global economy.

        The one piece of advice I feel safe to give is to go for SGOV (or similar with ~5% risk free) until you have made a decision of where to invest. Perhaps even do a very slow DCA by putting 400 into SGOV and 100 into your chosen world ETF, just keep doing that until you feel like things have stabilized (bottomed out) and then move all the SGOV equity into your world ETF.

  4. [2]
    atoxje
    Link
    I’m also based in Europe. I do IWDA & EMIM in a 85-15 split to have the broadest possible coverage.

    I’m also based in Europe. I do IWDA & EMIM in a 85-15 split to have the broadest possible coverage.

    2 votes
    1. milkbones_4_bigelow
      Link Parent
      Thanks for your reply :) May I ask how you arrived at that split?

      I’m also based in Europe. I do IWDA & EMIM in a 85-15 split to have the broadest possible coverage.

      Thanks for your reply :) May I ask how you arrived at that split?

  5. boxer_dogs_dance
    Link
    Is there a bond based fund you could add? There are various factors related to Trump policies and worldwide reaction that can impact markets in unusual ways IMHO. Ymmv.

    Is there a bond based fund you could add?

    There are various factors related to Trump policies and worldwide reaction that can impact markets in unusual ways IMHO. Ymmv.