Expanding to international stocks and ETFs was always the plan to target. Until now we invested in ETF only on the national market (BVB) and the only company we own a share on an international plan was purchased via Revolut ( and it’s only one, can’t leave her to be that lonely no?).
As much as I like Revolut for investing, because of the easy interface and how fast I can play with the money inside, I felt the need to step up my game a bit. Don’t get me wrong, I will keep using and invest via Revolut because at the moment I use it for stocks, crypto and gold ( for stocks and crypto I use other platforms also).
So, the last few days I have been browsing some platforms recommended by friends, subscribers, YouTube reviews and multiple financial blogs I follow, I finally found one interesting enough to open an account.
Here, we will follow with the biggest disclaimer ever. I am not a financial consultant and I am not affiliated with any investing platform, in any sort and my blog doesn’t have any sort of referral link (and this is why I am not going to provide any link to the platforms).
Investing via Trading 212
I am not a lazy person when it comes to investing and I really like to know what I invest in (and it even includes the times that I listen to friends that have more knowledge in the respective area). But between family, work and so many other things we have to do to function in a normal society, there is not too much time (jackpot for when we find 2-3 hours free) . So allocating time to browse each month or each week for new stocks or investment ideas can be hard (look at the blog and the fact I did not write for 3 months).
So taking that into consideration this are the following reasons for making me choose Trading 212 except the low or zero commissions.
Number 1: You can have an auto-pilot portfolio with auto-invest and auto-debit of money. So basically you are setting up a portfolio of whatever you want (Apple, Amazon, Netflix, 2-3 ETFs and so on), you set up the portions of the portfolio (10% Apple, 5% Amazon, 50% ETFs, etc.) and if you want to set a recurring payment/ investment and that’s it. You are good to go! Every time you put money in, the portfolio will do what it was asked for.
Number 2: You can buy fractional parts of shares and ETFs. They are like mini-lots from FOREX and can save you a lot of ‘savings’. So to simplify it, if you want to buy a stock that costs 4000USD for a full share and you have 40USD, you could buy only 1% of that share (Revolut has the same system, to be honest).
Number 3: I was able to make a deposit into the account, via Revolut which is a big plus from my side. Not to mention the whole process took less than 2 minutes.
So, now going back to number one, let’s make together a portfolio (what you guys see in this article is the work of multiple days, as I will analyze each kind of stock/ETF I throw in this pie), so bear with me, it will take a while.
Selecting our Pie Slices
So the Pie will be composed from both ETFs and Stocks (what I would like is to create multiple auto-invest portfolios, but let’s see if we can do it).
The first ETF I have chosen is the iShares Core MSCI World UCITS ETF USD (IWDA) which is an ETF with accumulation tracking the stocks from the most 23 developed countries. What I like about the core of the ETF is to seek long-term growth and has a covering of 85% of the listed equities in each country. Top Holdings include Apple, Amazon, Microsoft and Alphabet. Also the ETF is based in Ireland (low taxes). More about it can be found in the factsheet.
The second EFT is the iShares Core MSCI Emerging Markets IMI UCITS ETF (EIMI), also with accumulation, also based in Ireland and exposure to over 2800 companies from large, mid and small-cap companies (from the Emerging Markets). In my opinion it’s a good ETF for diversification. More about it can be found in the factsheet.
The third ETF I take into the portfolio is iShares Core S&P 500 UCITS ETF USD (IUSA), which is with distribution dividends (because it is always nice to receive something from time to time). They had a really nice return in the last period (33% in 2019 and 7+% in 2020) and it respects the pattern of investing from Ireland. Also it is exposed to the large U.S. companies (like the first ETF we chose). Maybe in time we will replace one of those for a better diversification. More about it can be found in the factsheet.
What I would like now, is to find a ETF based on clean energy (as I am sure we will have an explosion in that sector in the following years). And for this I use the JustEtf site. And with nice results I am tempted to invest in:
The next step will be to see if the ETF is listed in the platform (finger crossed). And we are double lucky.
The factsheet informs us that the ETF is listed in Ireland, it is exposed to clean energy companies (30 global companies) and has a distribution of dividends. It also has a Semi-Annual rebalancing so will drop and take new companies depending on their performance. The TER rate is higher than the previous ETFs but with a return of 90% for 2020 I will happily pay the price.
Guys, the article is long enough for the moment and I would love to see if we can create two different investment strategies, one in Stocks and one in ETFs. So let’s stop here with selecting the ETFs and see how we can create and customize the pie.
Creating our Pies
We have the ETFs in our watchlist and now we have to play with the settings of the auto-invest. Unfortunately I am not able to find the sections on the web platform…..
Ok, so after reading the help apparently the option is available (at the moment) only on mobile. This is a setback, but I take into consideration I will probably check this portfolio only on mobile so….no harm done?
Let’s see how easy it is.
So we are going to create a Pie section, then start selecting our ETFs (from the watchlist we created or search new ones). The first thing is that we weren’t able to find an EIMI ETF for auto investment, so I selected the EIMU (which looks to be the same ETF but in the Netherlands and a newer one on the market) which has the same components and performed almost the same (factsheet).
Now that the Pie is created we also have a yield generated from the past 5 years, that nets 5.70% annual growth.
And of course I will tinker a bit with it, as I want to try to gain around 8-10%.
Well, the best I could manage now is a 7.93% avg. annual return with the following components: EIMU – 5% ; IUSA – 25% ; IWDA – 35%; IQQH – 35%.
But as I like to complicate the list a bit, I am thinking of selecting a REIT and put it in the mix. And the winner is BPYU – Brookfield Property REIT Inc and according to Investopedia and Yahoo finance is one of the top performers on 2020. For more info regarding it, we can look on their latest press release.
With adding the new asset to the Pie we are at a 7.65% gain, and will probably play more in the future with the settings. (BPYU – 1%; EIMU – 4% ; IUSA – 25% ; IWDA – 35%; IQQH – 35%).
The next step is to set on autopilot everything. So we will set up the investment schedule and automate the deposits. And the next screen is just wow as it gives you a value projection based on your settings and the monthly schedule and settings.
I want to invest for the next 10 years (for now) a monthly 50$ (for now) on the date of…let’s say 15 of each month with 50$ initial deposit (what we currently have in the account).
The next screen allows us to set a name and Icon (and of course we will go with the stash of money).
Ok, something messed up as I got another automated transaction from my Revolut account, but the portfolio is up and running.
Setting the portfolio was peaty easy, but it takes a lot of time to research for better results. I like very much the options I have at my disposal, but didn’t expect to do another deposit when starting up the portfolio. On the overall I had fun and I can’t wait to see the results (and now I have to start adding all the numbers to my excel files).
For the future, we will create a new portfolio in the next post (I think it will be in 2-3 weeks, if there is an auto-deposit thing, haha).
Thank you for reading this!
Disclaimer: I am not a financial consultant, all the information you find here are my decisions, I taken at that moment, on my own analysis. I am open to any type of discussion about money. If you want to replicate my portfolio take into consideration that it is your money.