I'm a pretty novice investor, 31 years old, living and working in Spain.
I've looked quite a bit into the lazy portfolio retirement strategy a couple of years ago and chose to use the following plan with a monthly allocation used to always rebalance the portfolio.
- 50% VTI
- 50% VXUS
- 50% IEAC (corporate bonds)
- 50% CBE3 (short term government bonds)
That was my initial strategy (that I've been using around 3 years) but a half a year ago my broker (IB) forbid me from buying more US based stocks so I'm kinda stuck there with my VTI and VXUS position. I can sell them but can't buy anymore so no way to keep going or even rebalance.
I've read about your EU suggested portfolio (the accumulating one) and my idea is to keep my US based ETFs (to avoid paying tax if I sell them) and from now on buy the suggested EU ones.
- SWDA: Global, developed markets Large+Mid
- EIMI: Emerging mkts IMI : Large+mid+small
- WSML: MSCI World developed markets Small Cap
So I have several questions:
- Does everything makes sense until now?
- For a long term strategy should I add the small cap ETF (WSML) into the mix? It is marked as optional and the TER is higher than the previous 2.
- What should be the distribution of stocks value between SWDA / EIMI or SWDA / WIMI / WSML. I was using 50% VTI and 50% VXUS (value not stock number obviously) because the US market is supposed to be 50% of the world market. But now with those new ETFs I don't know.
- How would you handle rebalancing my frozen position of VTI and VXUS in the future? None of the new ETFs are equivalent to the old ones so I'm really not sure how to tackle this.
- Is the 90% stock 10% bond (will be increasing the bond ration by one every year) good enough in case the stock market crashes and I need to sell bonds to buy stocks an rebalance the portfolio?
- The bond ETF recommended in your EU portfolio (AGGH) has a lower TER than the ones I was buying. Do you guys recommend moving to that one instead?