Shareville-profiili
My investment strategy is based on total market index funds. As a reference point, I will use MSCI ACWI + FM IMI to calculate weights, since this is the most comprehensive index I know of. I get the index weights by googling the index names and find the market cap for each index in the fact sheets that usually show up. I can then just calculate percentages compared to the market cap in MSCI ACWI + FM IMI.
First of all, I find that MSCI FM IMI is about 0.16% of the total market cap. Since this is an area that has very limited options for investment for me, and the available funds are too expensive for my taste, then I have chosen to exclude investing in FM for now. I am keeping it in the calculations for future reference though.
I see two possibilities for replicating the rest (MSCI ACWI IMI):
Using 3 funds
MSCI World, MSCI EM IMI and MSCI World Small cap is an exact decomposition of MSCI ACWI IMI. They have these weights relative to the reference:
MSCI World: 76.83%
MSCI World Small Cap: 11.08%
MSCI EM IMI: 11.94%
Total: 99.84%
To get this, the distribution in funds should be:
EUNL: 76.95%
IUSN: 11.09%
ISN3: 11.95%
Combined annual cost: 0.21%
Using 7 funds
Funds targeting certain parts of the world can have much lower annual cost, which can reduce the combined cost. To get this, I will decompose MSCI World into 6 parts, so the total composition with weights become:
MSCI EM IMI: 11.94%
MSCI World Small Cap: 11.08%
MSCI USA: 52.01%
MSCI Europe: 14.54%
MSCI Japan: 5.06%
MSCI Pacific Ex. Japan: 2.56%
MSCI Canada: 2.52%
MSCI Israel: 0.14%
Here, MSCI Israel is difficult to track, and it is small so I am excluding it from my funds selection, which means that the total market being targeted in this composition is 99.70%
The 7 funds should be distributed like this:
ISN3: 11.97%
IUSN: 11.11%
SXR8: 52.16%
LYP6: 14.58%
LCUJ: 5.08%
SXR1: 2.57%
SXR2: 2.52%
Combined annual cost: 0.13%
To get to this level, I have made some approximations. Which means that MSCI USA is represented by S&P 500 and MSCI Europe is represented by STOXX 600 Europe, and in both cases this is due to reducing the annual cost in those funds. There is a fund named XD9U that actually tracks MSCI USA, but it is not in the Nordnet Monthly Savings program, so I am not looking at it right now. This also applies to SXR2, so I am considering if this should be left out as well since it is a pretty small part of the market.
One important thing to note is that the difference in TER is 0,08%, which amounts to 800 per million or 80 per 100.000 (any currency applies). I am starting to consider at what level it is worth managing 7 funds instead of 3. I think the portfolio should probably have a significant size before that makes sense.
Index weights calculated based on market cap numbers from 2021.07.30.
Elämäkerta
My investment strategy is based on total market index funds. As a reference point, I will use MSCI ACWI + FM IMI to calculate weights, since this is the most comprehensive index I know of. I get the index weights by googling the index names and find the market cap for each index in the fact sheets that usually show up. I can then just calculate percentages compared to the market cap in MSCI ACWI + FM IMI.
First of all, I find that MSCI FM IMI is about 0.16% of the total market cap. Since this is an area that has very limited options for investment for me, and the available funds are too expensive for my taste, then I have chosen to exclude investing in FM for now. I am keeping it in the calculations for future reference though.
I see two possibilities for replicating the rest (MSCI ACWI IMI):
Using 3 funds
MSCI World, MSCI EM IMI and MSCI World Small cap is an exact decomposition of MSCI ACWI IMI. They have these weights relative to the reference:
MSCI World: 76.83%
MSCI World Small Cap: 11.08%
MSCI EM IMI: 11.94%
Total: 99.84%
To get this, the distribution in funds should be:
EUNL: 76.95%
IUSN: 11.09%
ISN3: 11.95%
Combined annual cost: 0.21%
Using 7 funds
Funds targeting certain parts of the world can have much lower annual cost, which can reduce the combined cost. To get this, I will decompose MSCI World into 6 parts, so the total composition with weights become:
MSCI EM IMI: 11.94%
MSCI World Small Cap: 11.08%
MSCI USA: 52.01%
MSCI Europe: 14.54%
MSCI Japan: 5.06%
MSCI Pacific Ex. Japan: 2.56%
MSCI Canada: 2.52%
MSCI Israel: 0.14%
Here, MSCI Israel is difficult to track, and it is small so I am excluding it from my funds selection, which means that the total market being targeted in this composition is 99.70%
The 7 funds should be distributed like this:
ISN3: 11.97%
IUSN: 11.11%
SXR8: 52.16%
LYP6: 14.58%
LCUJ: 5.08%
SXR1: 2.57%
SXR2: 2.52%
Combined annual cost: 0.13%
To get to this level, I have made some approximations. Which means that MSCI USA is represented by S&P 500 and MSCI Europe is represented by STOXX 600 Europe, and in both cases this is due to reducing the annual cost in those funds. There is a fund named XD9U that actually tracks MSCI USA, but it is not in the Nordnet Monthly Savings program, so I am not looking at it right now. This also applies to SXR2, so I am considering if this should be left out as well since it is a pretty small part of the market.
One important thing to note is that the difference in TER is 0,08%, which amounts to 800 per million or 80 per 100.000 (any currency applies). I am starting to consider at what level it is worth managing 7 funds instead of 3. I think the portfolio should probably have a significant size before that makes sense.
Index weights calculated based on market cap numbers from 2021.07.30.
Omistukset
Kirjaudu sisään Sharevilleen nähdäksesi omistukset.
Kirjaudu sisään
Salkut
Pörssilistatut
Painoarvo
Keskikurssi
Tuotto
Unity Software Inc
100,00%
1,00 SEK
+13,80%
Walt Disney Company (The)
14,10%
100,00 SEK
+1,40%
Chewy, Inc. Class A
12,70%
1,00 SEK
+25,50%
Dometic Group AB
11,00%
1,00 SEK
+42,30%
Hims & Hers Health, Inc. Class A
8,50%
1,00 SEK
−22,10%
Airbnb, Inc. - Class A
7,20%
1,00 SEK
+56,12%
Facebook A
5,50%
1,00 SEK
−13,40%
Sea Limited American Depositary Shares
3,30%
1,00 SEK
+35,80%
Rahastot
Painoarvo
Keskikurssi
Tuotto
TIN Ny Teknik A
12,60%
1,00 SEK
+35,80%
Lannebo Teknik
9,60%
1,00 SEK
+35,80%