7 Years of ETF Investing: What I Learned
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- Опубликовано: 7 июн 2024
- 7 years have passed since I started investing in ETFs. Was it worth it?
🇪🇺 Best broker in Europe (ETFs): angelo.fi/ibkr
Here are 6 important lessons I've learned throughout my 7-year ETF investing journey, some of them the hard way. Hopefully my experience will help you avoid some of these yourself, especially if you're a beginner. Let's also review my returns since then and where my portfolio stands in 2024!
My Favorite Brokers (ETFs, Stocks and Bonds):
🇪🇺 Interactive Brokers: angelo.fi/ibkr
🇪🇺 Trade Republic (4% interest p.a.): angelo.fi/trep
🇩🇪🇦🇹 Easiest for Germany & Austria: angelo.fi/etfs
👉 Compare ETFs & Stocks: angelo.fi/comp
My Top 5 in P2P Lending:
📌 Esketit (0.5% bonus): angelo.fi/esketit
📌 Mintos: angelo.fi/mintos
📌 Viainvest (1% bonus): angelo.fi/viainvest
📌 Income (1% bonus): angelo.fi/income
📌 Lande (1% bonus): angelo.fi/lande
💰 All P2P deals & conditions: angelo.fi/all
Where I Buy Bitcoin & Ethereum:
⚡ Bitvavo (10€ bonus): angelo.fi/bit
I Hold My Emergency Fund (Cash) Here:
🇪🇺 4% interest p.a. (€100K deposit guarantee): angelo.fi/save
📈 What I Use to Track my ETFs: angelo.fi/getq
🏠 All my investments & accounts: angelo.fi/tools
Video mentions:
📌 Vanguard FTSE All-World ETF Acc. (VWCE)
🎥 My Investment Plan for 2024 (How to Prepare): • My Investment Plan for...
🎥 The Best World ETF To Hold Forever: • The Best World ETF To ...
00:00 267.000€ in ETFs
00:28 1. Keep it simple: My ETF investing journey
03:37 2. It never feels like the right time to invest
04:48 3. Dividends are irrelevant (for the most part)
06:15 4. Patience is key
07:31 5. Be mindful of fees
08:57 6. Have an emergency fund
10:41 What I learned after 7 years investing in ETFs
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Some of the links are affiliate links, which help support me and the RUclips channel. Still, none of the links are sponsored.
Disclaimer: I am only sharing my own experience. I'm not a financial advisor and you should always do your own research and due diligence before investing. Investing involves risk of losses.
What was your most important lesson as an ETF investor?
🇪🇺Trade Republic (ETFs + 4% Interest): angelo.fi/tr
🇪🇺Interactive Brokers (ETFs): angelo.fi/ibkr
👉Compare ETFs: angelo.fi/comp
📌Esketit (P2P): angelo.fi/esk
📌Mintos (P2P): angelo.fi/min
🏠Current P2P & Broker Deals: angelo.fi/p2p
🇪🇺4% interest p.a. (€100K deposit guarantee): angelo.fi/save
⚡Where I buy Bitcoin: angelo.fi/bit
Ignore forecasts.
Amen to that!🙏
Congratulations on your channel, Angelo. We are following you now. Cheers, Marcelo and Fernanda from Brazil.
Very good video, point one is maybe the most important. I did the same with a huge diversification in many ETFs and now I’m trying to simplify. You’re the best Angelo !
Thanks!
And happy new investing year,🙂
Perfect as always! Thank you for your feedback and making this channel!
Nice video.
I started investing in index funds in 1998 and stopped work in 2019 aged 51.
Your points are a recipe for financial freedom. Most people will be unable to stick to them though.
Wow, that’s very motivating ☺️🙌🏻
How much did you invest over the years?
@@FeelMyBicepp it varied. Very roughly, one third of my annual lifestyle costs were invested (so if my spend was £21k I would invest £7k)
In later years I invested a higher percentage because my wages went up, but I did not spend more.
@@ChrisShawUK thanks
Thanks Angelo for video and for sharing your personal experiance!
Perfect advises! Thank you!
Thank you! Useful as always ❤️
Happy new year Angelo! Looking forward to new videos in 2024
Happy to hear that, happy new year to you as well! 🥂
That was an excellent presentation. Thank you. It probably took me 20 years to achieve the knowledge that you present here.
Thank you for sharing your experience! I´m just starting on my journey now and your experience reassured my on my current path.
Great information Angelo. Thank you very much for your informative video. Very helpful and practical advice.
Thank you so much! 😊 Your help was very valuable to me.
Thank you Angelo. Really appreciate your share.
Thanks for the video! Still the best wishes for 2024, may it be a great year! 🚀
Wishing you a fantastic 2024 as well! 🙏
Fantastic video Angelo. Have a great 2024
Thank you Dave! Wishing you a fantastic 2024 as well! 🙏
Happy New Year, Angelo! Keep creating great content, and keep it simple!
Happy new year to you as well, Vlad! Certainly planning to, I'll do my best!
Hi Angelo, Happy New Year with health & prosperity !!! Thanks for this very helpful video !!!
Happy new year my friend! Wishing you a fantastic 2024 as well! 🙏
Good video and good advice. Thanks.
Good work. keep doing it.
Very informative and to the point...cheers!!!
Great video. Thanks!
Fantastic video, Angelo. Everyone in the United States needs to watch this. Thanks!
Amazing tips. I am a beginner in ETF investing and this video is like golden advice 🙂
Appreciate your efforts
Great video!
Nice vid! Keep up
Thanks Angelo. Good general advice clearly explained.
Hi Angelo, I really enjoy your videos!
Could you please make a video about the taxation process for ETF that are based in Ireland such as VWCE ?
Angelo is pure gold!
Very good content I’m working in the market in the regulatory department and you seems to be very legit ! Congratulations we need more honest ppl on RUclips!
Hi Angelo, great content!
Do you use any app to bring together your portfolio from different brokers?
Thank you for this video. In many financial/etf forum now one just have to copypaste this for the majority of posts.
My pleasure! Thank you, it always makes me happy when I notice one of my videos being shares somewhere online :)
Thanks for your sharring 👍👍
Hey Angelo, thanks for the content so far, hope 2024 goes your way!
Just curious, do you track a year-by-year inflation-adjusted value graph for the sums you invested across the years in VWCE?
Also, what's your investment cadence? Weekly/monthly/quarterly/random/etc. ?
Keep up the good work!
Thank you, wishing you a great 2024 as well! 🙏
No, there are tools that already do a great job at that: curvo.eu/backtest/en/portfolio/vwce--NoIgag6gwgoiA0xQEkYAY0CEDSBWTAigCoAcaCAjALo1A - you can find real (inflation-adjusted) vs. nominal returns there
My wife and I have a recurring, automated investment running at the start of each month and I then buy more shares at whatever moment I have more money coming in (I'm self-employed, so it fluctuates a lot).
Thank you very much for sharing your experience with passive investing into ETFs. I am currently going through my own experience with that.
one of the best videos on personal finance advice i have seen and there is SO much garbage out there. Grazie Angelo!
Thank you, I'm very happy to hear that!
Angelo thanks for the content . Have you bought VWRL from interactive brokers in EUR ?? Because i only find it in USD
Thanks for the video. Do you see Trade Republic as somewhere you can trust long term? And how long does it take for funds to be withdrawn from there? Thanks.
Really nice content Angelo (as usual)!
May I ask you if you know how taxes in Austria work if you move your investments out of country?
My wife and I have ETFs that we bought when we came to Austria but our contracts run just for the next 3 years; after that, it is likely that we'll have to leave the Schengen area.
Thank you Tomas! Haven't looked into this more closely yet as I haven't had the need to (nor would it change our investment strategy), but it's something I'm also interested to find out.
Thank you for your transparency! 🙏😊 I've got 3 etf's for 2 years: VWCE, S&P500 and one for dividends. The best performance in my portfolio is S&P500, the worst the dividend one (actually in minus all 2 years I hold it). VWCE doesnt perform that good as for you, but I guess it needs more time and space :)
Thank you for sharing! Yes, the US has been outperforming everyone else lately, but since nobody knows the future I like to keep it simple and include all countries via VWCE :)
@@AngeloColomboFi Why not 90% FTSE and 10% S&P?
Keeping investing simple. THAT strategy works... 100% of the time.
Less is always more! And I always remember KISS - Keep It Simple Stupid. Great video man
Complimenti, molto interessante. Che ne pensi del Value Averaging? Perché non lo adotti?
Hi Angelo, great summary in this new video. IB is still your favorite broker? thanks and happy 2024!
Thank you Federico! Yes, IB is still my number one followed by Trade Republic :)
Hey Angelo, great video, thanks. In my personal life I met quite some people investing only in real estate, meaning they would get a mortgage and then rent the rooms, then get another house and do the same thing and so on. If what you get through rent is higher than your mortgage than it seems like a no brainer don't you think? What made you decide to go for the ETF route instead? Thanks!!!
Hi Angelo! That what he learned is almost the same what I've learned. 😀 Keep going, after another 7 years the result will be amazing. : ). Can you share some of the books which you read about ETF Investing?
Great! 🙏
Yes, we should be well into early retirement by then if things go well :)
One of my favorites was The Simple Path to Wealth by JL Collins, which is a great place to start in my opinion.
@@AngeloColomboFi, yes this is also one of my favourite, which represent the simplest strategy. But I also at the moment diversified with other type of assets - broad ETFs as S&P500 and FTSE All World, also High Dividend ETF and a few shares. Apart from that I invest in P2P and Money Markets fund like you and also Farm Land.
Hello Angelo, I would like to start to invest on ETF but obviously I have no experience.
I found your videos very informative.
Please, can you give me some advice about the process to start this new challenge for me?
You mentioned books or if there any others links that I can trust.
Thanks and have a great time
Hi Angelo! Many thanks for sharing your investing journey with ETFs, very inspiring and encouraging for all of us! Two questions which I didn’t seem to find in the videos I watched, (i) as a European investor, how do you manage the exposure to USD and (ii) if you had a lump sum for example €50k would you invest in the ETF immediately or €10k over 5 month period? Many thanks in advance!! Continue doing what you doing!!!!!
Hi Angelo, thank you for sharing. I’d like to start investing more this year. I have both trade republic for 2 years and IB for 1 year. I live in Germany and can’t invest in S&P or Vanguard because of KID in English. I heard it’s a new regulation by EU parliament. It seems you are not facing this issue. How did you overcome this problem?
Now that bitcoin ETFs have been given the green light, it's likely that the price of bitcoin will soar past $100k. I'd be remiss not to seize this opportunity. With $500k in cash savings losing value to inflation, I'm considering jumping in. But is it too late to reap significant profits?
i don't think it is. Once bitcoin crosses it's all time high, it becomes the new bottom. Anything under 69k is a good buy. It's still advisable to work with a fiduciary advisor instead of relying solely on speculations.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
Due to the significant falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this coach?
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Sonya lee Mitchell turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
I wonder if you would consider doing a video on ETFs that don't have oil and gas holdings, or a video with any other angle on sustainable investing? Personally I plan to decarbonise my portfolio in 2024 and I bet some of your other subscribers are thinking along the same lines. Thanks for all your great videos and greetings from (also) Vienna.
I second that thought! Would be interesting to hear more about sustainable investing
Angelo, can you suggest alternative to Trade republic which is not available in Croatia for getting that 3-4% of interest on emergency fond? Do Interactive brokers offer similar thing? On what risk?
Did you create a kids depot for investing for your little one? I’m from Germany and this seems to be a good option. Nice video!
Hello Angelo. What's your opinion about sintetic etfs? They seem to be cheaper and they have less tracking error. But I don't see many recomendations to buy them
For those of you watching this elsewhere: Banks and Financial institutions can fail suddenly, and it can be of equal probability with you loosing your job (which tends to happen simultaneously), you might loose most of your money with maybe a little refund 10+ years later. It is not always a good idea to keep your emergency funds invested. Keeping it in a Bank that does not give interest but government owned, or even keeping 2-3 months in a safe at home might be a good idea.
Please investigate the end of Weinmar republic, compare it with recent events such as Argentina, Venezuella, and observe what governments do when they go bankrupt.
Great video. What's your opinion about sxr8 etf and freedom 24 broker?
Bravo!
The whole talk about "reverse" market crash (real estate and stock market) basically argues that we are nowhere near done with inflation and that we might actually experience "hyperinflation" in the near future combined with accelerating poverty levels across the nation or going thru a historical economic depression...those are the extreme conditions that have produced the reverse market crashes in most examples I've seen. I personally don't see anything that extreme coming, but who knows.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Strategists have been aiding folks in recording gains over 250k just in a matter of months, so I think there are alot of wealth transfer in this downtime if you have someone who knows where to look like i do.
Hello, how did you handle it? I believe I require a pro after reading these comments
SONYA LEE MITCHELL is the manager I use. Just research the name. You'd find necessary details to set up an appointment.
It's good you make your own research. and make sure whoever you work with is licensed n verifiable with a repute, this Sonya looks the part but i'd do my due diligence. I set up a call, thanks.
Scam bot
Which platform do you use or is best for investing with multiple people? For instance family members
I like the regional diversification of your ETF portfolio. Regional diversification is such an important method to reduce risk. I create stock analysis videos on my channel and I always cover where a company sources their revenue.
You are absolutely right. Especially if you have previously invested in stocks, it is easy to make everything too complicated with ETFs. An MSCI World ETF with a savings plan is all you need.
Great video Angelo! 👍🏾
You were gonna get my subscription anyway but your daughter just sweetened the deal 😅 she's an angel!! Bless you all!! 😃
Hey, I am starting to learn etfs, thanks for your videos. I see you like Vanguard FTSE All-World a lot, is there a financial reason you go with that one instead on SP 500 ( historically it seems to have bigger returns).
Simple S&P 500 involves only American stocks and the other involves stocks all around the world. Right now America is doing very goos but in the next years maybe another continent will perform better.
Hey Angelo, nice video! What are your thoughts on the SCHD US Dividend Equity ETF in comparison to the FTSE all world?
Thank you! It's an apples and oranges comparison, there is no point - 100 dividend paying stocks in the US vs. 3600 stocks from all across the world
Great job. To hold/ not sell during the pandemic and 2022 took courage. It’s easier said than done. Well done.
Thank you Drew! What did you do in 2020 and 2022?
@@AngeloColomboFi I held and added carefully to quality companies. It was a hairy experience and lonely at times as there were so many bears. Thanks.
Thanks Angelo, very insightful!
I was wondering if you have any reccomendations regarding cold wallets for crypto?
My pleasure, Maks! Yes, I use a Ledger Nano S Plus: angelo.fi/ledger
Trezor is great as well, just make sure you always order directly from the official store.
Hi, can you please answer where I can see "Withhold Tax" for VUSA or VWRL ETF-s? I am using Interactive Brokers and for ETF-s there is no withhold tax. Is there any document or? I need some document to show in my country to confirm that taxes for that investments are paid. Thx.
Is living in Austria a big drawback for dividend investing? even the non-paying etfs fall under dry-income tax. Isn't it better to relocate to Switzerland?
Thank you so much for this video! Curious to know why you choose that ETF over an SP500 ETF (eg Vanguard S&P 500 UCITS ETF), which performs slightly better historically
My guess would be because S&P 500 is not geographically diversified. It only contain USA firms.
Warren Buffet said just buy the S & P 500 index, i have done just that & done very well.
Thanks a lot for your very informative video.
Please could you tell us how much you have invested in your portfolio overall so that we can work out your actual returns?
Thanks a lot for sharing this information with us.
You can see the total amount we invested at 3:18 - Keep in mind that we reinvested paid out dividends as well (which are counted as invested capital) and we added a lot more money over the past three years compared to our beginning years (2017 - 2020).
3:54 then shows you our returns on a yearly basis in case you're interested
@@AngeloColomboFi Thanks for your explanation. You're an inspiration to me.
Hey Angelo! I wanted to ask you, does the 20,000€ investor compensation scheme limit concern you? Because in the US, brokerage accounts are protected up to $500,000 but here in Europe, it’s up to €20,000. Maybe you could make a video about this?
Hi Angelo. Thanks a lot for your video. I have also made the same mistake of buying too many ETFs in the beginning and now I have realised my mistake although it has not been long since I started. However, it is difficult to decide which ones to let go after having bought some shares in each of them. For example, I have been investing in the Vanguard All World ETF as you but I have also been investing in some other ETFs such as an AI ETF expecting high growth rate in the next 10 years. Of course, the sum of the expense ratios of these ETFs would cost a lot in the long term. Thanks a lot and appreciate your time for the video and your reply.
My pleasure! It happens, as long as you don't make your sector bet your core investment, I think that's perfectly fine!
@@AngeloColomboFi Great! Thanks a lot for your reply!
Thanks Angelo, IBKR is confusing for me, is the VWCE ETF for Europe this one, "VANG FTSE AW USDA / IBIS2"
and the exchange is IBIS2? Thanks.
It always shows one exchange as a base, in this case IBIS2 (XETRA in Germany), but IBKR routes your order to whichever exchange is offering the best price for your order. Yes, that one (VWCE) is the Accumulating Vanguard FTSE All-World ETF.
Hi I'm 3,4 years from my retierement. What is the best I can do in this time? Thx
Hey Angelo. I have seen you use getquin. Do you allow it to automatically import your data or you input it manually?
Hi George, I'm actually still adding every transaction to Portfolio Performance (because I've been doing it this way since 2017), after which I export the csv files for my brokerage accounts to Getquin and import them there. Doing it automatically via Getquin would definitely be a lot easier if I was starting today 😅
Hi Angelo, Does Trade Republic pays capital gain tax automatically for Austrian residence? or do I have to do something else manually if I want to keep my emergency fund over there?
Not yet, they're working on becoming "tax easy", so that they can take care of taxes automatically in Austria. For now you have to declare these interest earnings on a yearly basis in your tax returns (eg. interest from 2024 goes into your 2024 tax returns, which you have to submit by end of June 2025). Trade Republic provides you with a tax report specifically for Austria though, which summarizes everything.
Hi Angelo, Im also located in Austria and have 2 questions:
1) if you are using trade republic, are you filing taxes on your own? Is this more efficient than tax simple brokers? If not, are you using a tax lawyer? Is a tax lawyer in Austria still cheaper than tax simple brokers (e.g. flatex)?
2) ive heard accum is somewhat complicated in Austria as you have to pay tax on deemed distributions. How do you handle it?
1) Yes, I'm self-employed and have been filing taxes on my own for a long time. I'm now used to tracking and filing taxes for my ETFs on non-Austrian brokers as well, but I still recommend most Austrian residents go with Flatex to keep things simple and not have to waste any time on it: angelo.fi/flatex
The yearly tax reports issued by KPMG on Trade Republic and Scalable Capital specifically for Austria have become quite good though, so luckily it's not as much work as it used to be.
2) Acc. is still easier than Dis. ETFs, where you have to factor in paid out dividends as well. If you need more info on how taxes work in Austria for ETFs, feel free to shoot me an email: angelo.fi/mail
Hi angelo, so which etf did you finally settle on? I have began my investment journey. I would like to pick one etf and just invest like you did.
Hi Gabriel,
the Vanguard FTSE All-World Acc. (VWCE) as mentioned in the video. This video might help you decide: ruclips.net/video/ysyJh7DOex4/видео.html
Thanks for the video. Trade republic is a safe bank to keep all the saved cash there please?
Yes, your money is secured up to 100.000€ by a bank deposit guarantee. I still like to keep a bit of cash at home and on my home bank account as well, just in case it takes a few days for the transfer to arrive (for me usually the next day or the day after).
Thanks for sharing your story :) but I dont understand why was it more expensive with 6 ETFs instead of 2ETFs, like isnt the fee a percentage of the amount of money you put in the ETF? How does the number of ETFs influence the this?
What is weird - I did not find a way to invest into ETFs via IBKR.
I see you're from EU as well. Could you maybe make a small tutorial on that?
I wanted ti buy the FTSE ETF you suggests in the video. However I see that on Degiro the only ETF replacating this index Is USD denominted. Buying this ETF would not expose me to FX Exchange Risk if I am within Eurozone?
How are using Trade Republic when you're based in Austria? Their website says you have to have a permanent residence in Germany (with tax liability) to be able to open an account. Thanks!
Hey, isn't the dividends are taxed the same rate in the Accumulated ('inside' the ETF) and Dist. versions ?
In most European countries no, but it depends on your country's local tax laws
Thanks for the video! One question: why would you choose Vanguard FTSE All-World instead of, say, iShares Core MSCI World, even though the latter has smaller expenses and performed better, at least in the last 5 years? Is it just because of the larger diversification?
He talked about this in separate VWCE video, as you said - it's diversification, as IWDA does not cover small cap nor emerging markets. Those under performed lately, but it's not an indication for future performance.
I see, thanks! @@GoSu..
Exactly as @GoSu said :) But I totally understand investors that choose to only invest into developed markets (eg. via an MSCI World or FTSE Developed World) due to the lower fees and EM's poor performance over the past decade.
Where do you track the performance of your portfolio? I find interactive brokers so complicated for this
angelo.fi/getq and www.portfolio-performance.info/en
I have a portfoli of four etfs the vanguard s&p 500, Vanguard FTSE develop, iShares NASDAQ 100 and iShares Automations and Robotics. Is that too much, should I just stick to one, and if yes which one?
All you need it VGT
Hi, excellent video! I have a problem, I'm living in Australia so I can buy VWCE... What option could be similar here in Australia??
Either the US-based ETF VT (Vanguard Total World Stock) in case you have access to it in Australia or VGS (Vanguard MSCI Index International Shares ETF), which covers the MSCI World
@@AngeloColomboFi Oh thanks Angelo! But which differences does VT and VGS have with VWCE? This ones have the same characteristics? Thanks!
2:45 You say the 2 ETFs do NOT overlap of around 90% but when I check them, I see they have almost identical top 10 holdings and also they are ~70% focused on USA. Could you pls elaborate?
Have another listen, I actually said "since it has an overlap of around 90%" :)
Angelo, can you make a video on capital gain and taxes when trying to close an ETF.
You mean when you sell a position that's in profit? Since taxes are different in each country, you have to check how much taxes you need to pay where you live.
I tried ibkr but I still can’t buy ETF, they are either missing KID, thus disable the choice of buying them. Or I’m illegible to buy them, so i need to change the account settings to do so. Trying to change account settings just notify me that it ibkr deemed I’m not elligable. It is a uphill battle.
Ciao Angelo, what is your broker?
Very good Ang & wife
Any Aussies here? What are the best brokers/platforms for us in Oz? I heard CMC is good but I’m just starting to learn
I recently started investing; after completing my few share of errors with dividends and single picking stocks, I want to change my investment technique in 2024 and start focusing on ETFs. Currently, my main ETF is S&P 500, but I want to accumulate FTSE All World. What do you think about the combination of those 2? Either as 80/20 or 70/30% (with the main ETF cont. to be the S&P 500?); I wanted to diversify the S&P 500 with the FTSE all world, but I am not sure still about the contribution in my portfolio or if I should only focus on 1 ETF. What would your opinion be? Thank you for help & time!
Of course you can do that if you want, you'd simply be adding a bit of international diversification to a US-only portfolio. Keep in mind that the FTSE All-World is >60% US stocks already as well. This means a 70/30 split would basically mean you're 88% in US stocks and only 12% in stocks from the rest of the world. This video might help you pick a single ETF solution: ruclips.net/video/ysyJh7DOex4/видео.html
I want to simplify but the stocks I want to unload are in the negative. I'll be patient though.
Hi Angelo.
Did you ever had problems with Trade rep? I've opened the account (I based in Germany) and pushed first test 150 Euro where, that arrived in one day. After that I topped up much larger 5 chunk and they didn't arrived yet (3 days passed). The support just keeps answering like.... "it's processing".
No, I've never had an issue like that myself. Has the money arrived by now?