Country of residence: Netherlands
International lifestyle: no
Age: Early 40s
Desired asset allocation: 70/30
My portfolio seems more complicated compared to the bogleheads approach, especially the bond portion. What is the added value of the single digit percentage bond funds?
I use a cookie cutter portfolio from a financial service provider with 0.34% yearly commision (over total value portfolio).
Is it recommended to design my own portfolio? This will cost me 0.44% yearly commision at the same financial service provider.
My current cookie cutter portfolio from with 0.34% yearly commission:
70% Equities:
- 32.03% Vanguard SRI FTSE Developed World II (B) Common Contractual Fund (euro-hedged, ISIN: IE00BVVQ9K69)
- 22.18% Vanguard SRI FTSE Developed World II (B) Common Contractual Fund (ISIN: IE00BVVQBD33)
- 8.38% Northern Trust Emerging Markets Custom ESG Equity Index FGR Fund (ISIN: NL0013089147)
- 7.41% Northern Trust World Small Cap ESG Low Carbon Index FGR Fund (ISIN: NL0013474307)
30% Bonds:
- 20.76% Mix of the following funds: Vanguard Euro Government Bond Index Fund, het Vanguard U.S. Government Bond Index Fund, het Vanguard U.K. Government Bond Index Fund, het Vanguard Japan Government Bond Index Fund en het Vanguard ESG Global Corporate Bond Index Fund (ISIN's: IE0007472990, IE0007471471, IE00BLPJRG31, IE00BLPJRH48 en IE00BNDS0V25).
- 4.44% Vanguard SRI Euro Investment Grade Bond Index Fund (ISIN: IE00BYSX5D68).
- 3.30% Vanguard Euro Government Bond Index Fund (ISIN: IE0007472990).
- 1.50% Inflation Corrected Investment Grade Bond Mix (ISIN: NL0012706279)
Any advise or comment appreciated.
[Netherlands] Portfolio too complicated?
-
- Posts: 14
- Joined: Tue Mar 09, 2021 3:19 pm
Re: [Netherlands] Portfolio too complicated?
I am in Germany, so not that far away and also in Euro land.
1. Why did you choose this service provider? Seems to be an unnecessary expense to me.
2. Apparently, you prefer ESG-filtered Investments and also wish to include emerging markets and small caps. For the stock part, you could for example use Vanguard ESG Global All Cap UCITS ETF, which would give you all of that in one ETF.
3. For the bond part, what is the reason for this very complicated mixture? For example, the 1.5 % inflation protected bonds does not seem like it would move the needle. Also, are the foreign currency bonds hedged to Euro, or do you intentionally want to take on currency risks?
In the bond part, you could use just Dutch government bonds or European government bonds, or an aggregate of Euro bonds, but also here, one fund should be sufficient. For example, if you want to have a bit of everything and want ESG filter: Ishares Euro Aggregate Bond ESG UCITS.
1. Why did you choose this service provider? Seems to be an unnecessary expense to me.
2. Apparently, you prefer ESG-filtered Investments and also wish to include emerging markets and small caps. For the stock part, you could for example use Vanguard ESG Global All Cap UCITS ETF, which would give you all of that in one ETF.
3. For the bond part, what is the reason for this very complicated mixture? For example, the 1.5 % inflation protected bonds does not seem like it would move the needle. Also, are the foreign currency bonds hedged to Euro, or do you intentionally want to take on currency risks?
In the bond part, you could use just Dutch government bonds or European government bonds, or an aggregate of Euro bonds, but also here, one fund should be sufficient. For example, if you want to have a bit of everything and want ESG filter: Ishares Euro Aggregate Bond ESG UCITS.