It has been a year ago since I started this thread and that I started investing according to the Bogle-principles. I like the fact that I buy at fixed times and that I do not have to think about timing. Funnily enough all experts advised strongly against equities (they had been rising for 10 years at the time) and definitely against bonds as interest was bound to go up. The overall portfolio made about 4.3% for the first year while the bonds portion made 5.5% - goes to show you just never can tell.
I started with the following portfolio: 30% bonds, 10% REITS, 60% global equity trackers. Only the bonds are hedged. I use Interactive Brokers - which is the cheapest option in Singapore.
30% AGGH - iShares Core Global Aggregate Bond UCITS ETF - EUR Hedged (LSE - London Stock Exchange) - Accumulating
10% IPRP - iShares European Property Yield UCITS ETF - EUR (AEB - Amsterdam Exchange)
27% IWDA - iShares Core MSCI World UCITS ETF - EUR (AEB) - Accumulating (MSCI World index, excluding EM)
3% EMIM - Emerging Markets - iShares Core MSCI EM IMI UCITS ETF (AEB) - Accumulating
30% VWRL - Vanguard (FTSE World Index)
VWRL includes Emerging Markets, IWDA does not.
After 6 month I started to simplify the portfolio and since then I buy each month 54% IWDA and 6% EMIM. The liquidity in these funds seems much larger, resulting in closer bid-offer spreads.
I would like to hear your opinions on the following questions:
- Should I cash in on the AGGH portion now Brexit is becoming more likely - or is the common view that LSE traded ETFs will still be accessible for EU Citizens (without detrimental tax consequences?)
- What would be a good replacement for AGGH? - Keen to hear suggestions
- I work with the assumptions that EM is 10% of the global market but I believe the emerging market share has recently increased? How can I accurately track/determine the appropriate global market share for Emerging Markets?
- Was the IWDA/VWRL diversification a better portfolio approach or does IWDA and EMIM suffice?
- The IPRP portion has been the most volatile and least performing portion - I chose additional real estate exposure because I do not own real estate in The Netherlands. Is this an appropriate approach or is it leading to unnecessary exposure and volatility? - keen to hear your views.