Portfolio advice - Bulgaria

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Portfolio advice - Bulgaria

Post by barbapapa »

Country of Residence: Bulgaria
International Lifestyle: Move to another country is not expected
Currency: EUR
Emergency funds: 2 years
Debt: No dept
Age: 38
Desired Asset allocation: 70% stocks / 30% bonds (not sure)

Hi, I am new to investing (zero experience) and decided it's finally time to change this. It's better late than never! I spent maybe 7-8 hours in the forum but the information is overwhelming. I would need an advice about the following portfolio:

1. 30% Global Aggregate Bond UCITS ETF EUR Hedged Accumulating (VAGF)
2. 40% S&P 500 UCITS ETF (VUAG) Accumulating
3. 20% FTSE Developed World UCITS ETF (VHVE) Accumulating
4. 10% FTSE Emerging Markets UCITS ETF (VFEA) Accumulating

I have a plan to invest a lump sum + monthly payments for a period of at least 10 years.

1. Does the portfolio seem reasonable? Any suggestions?

2. Should I prefer EU exchanges to London/Swiss? I couldn't find a definitive answer if they are "safer" or cheaper when buying ETFs. My account is in Interactive brokers if it matters.
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Re: Portfolio advice - Bulgaria

Post by tre3sori »

Make your life easier with:
70% Vanguard FTSE All-World UCITS ETF (VWCE)
30% Vanguard Global Aggregate Bond UCITS ETF EUR Hedged Accumulating (VAGF)

ad 1. too complicated for my taste. USA make up for 64% of FTSE Developed World. So substantial overlapp with S&P 500. If you want to make it so complicated/try to get the lowest TER possible, a Vanguard FTSE Developed Europe UCITS ETF would make more sense next to S&P 500 and FTSE Emerging Markets. But Japan and Pacific ex Japan region would still be missing.

ad 2. if you trade EUR denominated funds, there is more trading volume/lower spread on EU exchanges like XETRA, EURONEXT, etc
Let every man divide his money into three parts, and invest a third in land, a third in business, a third let him keep by him in reserve. Talmud | 35% Real Estate, 45% Stocks, 15% Bonds, 4% Gold, 1% Cash
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Re: Portfolio advice - Bulgaria

Post by DJN »

if you can access VNGA60 then that might be the best option for you.
One fund and thats it!
Try opening an Interactive Brokers account.
Yah shure. | Have a look at the Bogleheads Wiki in the first instance.
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Re: Portfolio advice - Bulgaria

Post by vstariradev »

Reg question 1: The portfolio suggestions above are spot on if you’re sure you want 70/30 split, however I see you’re not sure if that’s what you want. Why do you feel that way? Correct asset allocation is key to a profitable portfolio and you must be confident in your decision.

Reg question 2: Stick to EU exchanges. There’s a 10% capital gains tax on profits made outside of EU regulated exchanges. I’m not sure what you mean by an exchange being “safer”. Generally, ETFs with high volumes of trading are able to offer you a better price because of the supply and demand for them. The bid/ask spread is narrower. The above listed ones have high enough volume of trading.
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