ETFs have various approaches for long -term assets. Which strategy fits depends, among other things, on the goals, the willingness to take risks and the investment horizon.
• Buy-and-hold: Invest in the long term
• Trend sequence: use spa trends
• Core satellite: Safe base with high returns
When choosing an ETF investment strategy, many different criteria, such as the investment horizon, the willingness to take risks and the wealth situation. There is no strategy that works for every investor – however, it is important that an ETF portfolio is widespread and fits your own investment goals in order to build up for long -term assets. The following strategies can be suitable for an ETF portfolio.
Buy-and-hold strategy
As the name suggests, the Buy-and-Hold strategy is about buying and holding shares. The basic idea comes from Benjamin Graham, but also investor legend Warren Buffett acts after this motto. This strategy is something for more passive investors who want to invest their money in the long term. After the investment, only adjustments to the weighting are made. Equiprades are ideally reinvested to use the compound interest effect. What works with stocks can of course also use investors for an investment in ETFs. The buy-and-hold strategy can be used with both a one-time investment and with a Savings plan Implement and offer the advantage that the effort is low. Due to the long duration, investors are less flexible – you should not sell in weakness phases.
Trend sequence strategy
In the trend sequence strategy, investors try to get into a spa trend. A look at an average day line, such as the average price of the past 200 days, is often taken here. If the course climbs over the 200-day average, a purchase signal is generated, if it falls underneath, a sales signal is generated. One advantage of this strategy is that greater losses can be prevented from exit in timely, but investors also have to find the right time for returning, which is often not easy. In addition, more transaction costs arise from more frequent adjustments in the portfolio. Since it is an active ETF investment strategy, it is less suitable for ETF savings plans.
Core satellite strategy
In the core satellite strategy, the portfolio is divided into a core and supplementary individual investments. The core that makes up the main share should offer security and ensure a certain basic return. For example, few, broadly diversified ETFs can be suitable for this. The individual investments meanwhile make up a lower proportion of the portfolio and are invested in more risky systems, which, however, achieve a higher return. This strategy represents a kind of mixture between active and passive investment strategy. In addition to the core, the so -called satellites “actively” try to achieve additional income.
However, investors can also combine the strategies. For example, investors can design the core in the core satellite strategy as a buy-and-hold portfolio and make a selection of the trend sequence strategy for the satellites. In the case of the trend sequence strategy, the buy-and-hold strategy can also be used in special cases, for example, profits in special cases.
Editor finance.net