The first one I would recommend is IWDA (IE00B4L5Y983). This fund should, in my opinion, be the biggest part of your portfolio. This is an accumulating ETF (if you want to know the difference between accumulating and distributing ETFs, check out this post!). The choice between an accumulating or distributing ETF depends primarily on the tax situation in your country. I’m from Belgium and over here we have a 30% tax on dividends which we don’t have to pay when the ETF reinvests them for us. On the other hand I don’t have to pay capital gains tax when I sell. Fingers crossed this will still be the case when it is my time! This ETF mainly covers large caps in the developed world.
EMIM (IE00BKM4GZ66)The next fund I plan on buying is EMIM (IE00BKM4GZ66). Again an accumulating ETF for the reasons explained above. This one mainly covers large caps of emerging markets. This way I’ll have exposure the markets in Asia, Latin America, Africa, …
IUSN (IE00BF4RFH31)The last fund I am probably going to buy is IUSN (IE00BF4RFH31). Once again, accumulating is the way to go for me. The one covers small cap stocks all over the world. This way I’m not only invested in large caps, yet another way to diversify!
Best ETF portfolio overview
This is the portfolio allocation I want to go for. The total TER should be 0,2035% which is a very decent number.
This is the weighted region percentage of the three ETF’s I want in my portfolio. As you can see there is a lot of diversification across different regions and this is what i’m looking for.
Do you have any questions or do you think i’m missing something? Let me know in the comments below or send me an email. I would love to hear your feedback!