Swiss investors will lose access to US-domiciled ETFs

Categories ETF, Investment, Switzerland15 Comments on Swiss investors will lose access to US-domiciled ETFs

Since the beginning of the year, I cannot buy Exchanged Traded Funds (ETFs) domiciled in the United States from my broker, DEGIRO. Since my current portfolio is mostly invested in Vanguard Total World (VT), this is a big problem for me. I can now only sell these ETFs, not buy them anymore. That means that the next time I will have some money to invest, I cannot invest it anymore as I want. This is bad news for Swiss investors.

This is due to new regulations that will come into play. These regulations already affected all European investors since 2018. But Switzerland was not affected before. We are going to see what changed. This is based on several European and Swiss laws. These laws are sad news for European investors and Swiss investors. I am not a legal expert at all. So this is only my interpretation of these laws. If I am wrong or I missed something, please let me know!

In this post, we are going to see why this is happening. And we are also going to see what are the different options for us. There are several possible solutions to this issue. But none of them is perfect as we will see.

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Who is John Bogle? Founder of Vanguard

Categories ETF, Investment2 Comments on Who is John Bogle? Founder of Vanguard

A few months ago, I talked about Warren Buffet, an incredible investor. Today, I am going to talk about another great man of finance, John C. Bogle. John Bogle is especially famous for being the founder of Vanguard. Vanguard is probably one the most famous mutual fund company. I have recently talked about several things that makes Vanguard unique. It is a great company. Its greatness is mostly due to the way John Bogle founded Vanguard.

Not only did he create the first index fund. But he also advocates for very cheap fees on mutual funds. He did a lot of good for investors like us! Without him, we would have to pay much more fees for our investment portfolio. He has a lot to teach us in terms of investing philosophy.

In this post, I am going to talk about the history of John Bogle and of the Vanguard company. I am also going to talk about his investing philosophy and the man he is. He led a very interesting life.

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Is DEGIRO really cheaper than Interactive Brokers?

Categories Broker, ETF, Investment, Switzerland12 Comments on Is DEGIRO really cheaper than Interactive Brokers?

You may have read that I am using DEGIRO has my broker. In fact, I chose DEGIRO mainly because of its very low fees. I am very satisfied with my experience with DEGIRO. I have not had a big problem since I started using it, about a year ago.

Interactive Brokers is also a very popular broker. It has been there for much longer than DEGIRO who is a very young broker. And it also has very low fees. When I chose DEGIRO over Interactive Brokers, I did it because I thought it was cheaper.

In this post, we are going to compare once again DEGIRO and Interactive Brokers. I am going to do the comparison in details including the two different account types of DEGIRO. In the default account of DEGIRO (Basic), your shares can be lent to other investors. This is not something that is done by default with Interactive Brokers. Therefore, my previous comparison was not very fair! This time, I am going to try to make it better.

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5 Ways to invest in real estate

Categories ETF, Investment, Real Estate, Tips4 Comments on 5 Ways to invest in real estate

You may not know it, but there are many ways to invest in real estate. Each of these ways have advantages and disadvantages. If you want to invest in real estate, it is important to know about these ways before doing a choice and investing in one of them. Or investing in several of them.

For now, I am not really invested in the real estate market. I just have a small position though my World ETF that has some real estate funds. But I may invest more in the future. For now, I need more stocks, but once I have got enough, I may shift a bit of my portfolio into real estate.

Let’s now see the different ways to invest in real estate. There are quite diverse. Each person wanting to invest in real estate should find a way that is adapted.

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Dividends – Nice passive income

Categories ETF, Investment9 Comments on Dividends – Nice passive income
This post is part 10 in the series Investing – All about investing.

In our Investing series, there is something we did not yet cover in details: dividends. A lot of companies in the stock market are paying dividends to their stockholders. That means that if you own a share of Coca-Cola, you will receive some cash four times a year, every quarter.

This is a nice way of accumulating cash since it does not require you to do anything. It is a fully passive income. You still need to buy the shares of course. But once it is done, you will get the money. There are many important things to know about these dividends and we are going to cover them in this post. If like me you are investing the entire market, you will get some dividends automatically :)

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Target Retirement Funds – Too much simplicity ?

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This post is part 9 in the series Investing – All about investing.

We have talked about many things now in the Investing series. We have covered index funds in details. Finally, we have covered several portfolios such as the Three-Fund portfolio and its variants and a few other lazy portfolios. But there is something we have not covered yet. It is the Target Retirement Funds.

Many people are investing for retirement. They may know for instance that they want to retire in 20 years. Given that and their age, it is likely that their allocation to bonds will increase over the years until retirement. Most people will do that by changing their allocation every few years. Either by rebalancing or by injection of new capital. But there is another way. Target Retirement Funds will automatically change their bond allocation over time.

In this post, I am going to cover Target Retirement Funds. We are going to see what is good with them and what is not.

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More lazy portfolios

Categories ETF, Investment6 Comments on More lazy portfolios
This post is part 8 of 8 in the series Investing – All about investing.

In the previous post of the Investing series, we discovered the Three-Fund Portfolio and its variants. It is a simple portfolio made of only three funds. It is really simple to manage yet very effective and diversified. We also saw the two-fund and one-fund portfolio. They are even more simple and yet have many advantages. But there are more lazy portfolios that are available.

People have proposed many more portfolios over the years. In this new post, I am going to cover more of these portfolios. They are called lazy portfolios because they are all using index funds. And you can kee the allocation of the different funds for many years. Instead of choosing stocks, which is difficult, you choose stock funds or bond funds. You can either use mutual funds or Exchange Traded Funds (ETFs) depending on what you prefer and what you have access to.

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The three-fund portfolio – Keep it simple

Categories Broker, ETF, Investment, Switzerland2 Comments on The three-fund portfolio – Keep it simple
This post is part 7 of 7 in the series Investing – All about investing.

In the previous posts of the Investing series, we have covered the basics of the stocks and bonds. We also have covered index funds, in the form of mutual funds and Exchange Traded Funds (ETFs). You should now have a good idea of how you want to invest. The problem remains on how to invest! One solution to this problem is the Three-Fund-Portfolio.

This is a very important question and one that you should spend some time thinking about. There is no one-size-fits-all investment in my opinion. There are many kinds of investment that work. For some of them, you will need some knowledge and time to make it work. The three-fund portfolio is a very simple portfolio made of three funds that should work for most people.

In this post, we are going to cover two things. How much bonds you should have and what is the Three-Fund Portfolio. Since there are also some direct variations of the three-fund portfolio, I am also going to cover them!

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Exchange Traded Fund (ETF) Arbitrage

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This post is part 6 of 6 in the series Investing – All about investing.

In part 4 of the Investing series, we have covered Exchange Traded Funds (ETF). In this post, I have mentioned that ETF used arbitrage to follow closely the price of the index. If the price of the stocks in the index goes up, the price of the ETF should follow. And if the price of the stocks goes down, the price of the ETF should follow as well. But if the price of the ETF goes up because of stock market trading, something should correct the price quickly. This is where arbitrage plays a big role.

In this post, we are going to see how Exchange Traded Funds are created. And also what is arbitrage? How it makes sure the price of ETF stay in sync with the price of the index. It is a bit of a complicated subject. But I think it is important to know exactly how financial instrument are working before investing in them.

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Index Replication in details – ETFs and Mutual Funds

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This post is part 5 of 5 in the series Investing – All about investing.

In the previous post of the Investing series, we talked about Exchange Traded Funds (ETFs). Before that, we talked about mutual funds. In both these two cases, we focused, especially on passive index funds. Index funds are replicating an existing index. For instance, the SP&500 index is replicated by many mutual funds and many ETFs. In this post, we are going to focus on index replication.

There are several different ways of replicating an index. There is physical index replication and synthetic index replication. It is important to know how funds are replicating the index. If you want to make a good choice between the different ETFs and mutual funds that exist, it is important to know the different ways they are using for replicating the index.

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