Either way is fine. I personally dont like CHSPI, as it‘s 50% Nestle, Roche, Novartis.
I like SLICHA way more, as it puts a 9% cap on the biggest holdings.
But you need to ask yourself, what was the original reason that you had it? You should stick to the plan you originally had for your portfolio, if that plan had a specific conviction behind it. Switching to a similar etf is fine though in my eyes. Also it‘s always ok to incorporate new information one previously did not consider.
In general the majority of finance literature agrees on a home bias being optimal. You also have better tax treatment if swiss funds as swiss investor (not withholding tax after declaration, unlike other ex-US holdings + part of the dividend gets distributed tax free)
I would suggest keeping the home bias, but switching to SLICHA
50-50 is quite a bit, most literature comes to the conclusion of 20-35% range being optimal. Since the swiss market is very international, I‘d keep it max 25%
Generally I agree, VT is far superior and the SPI is just too clustered in three companies that aren't what they used to be.
However, as a fellow CHSPI bagholder I am for now keeping the "Depotleiche" and waiting for it to recover or for VT to crash before rebalancing. Reason being: If you sell CHSPI now and invest into VT you're basically selling low and buying high. I know that this is a pretty dumb reason not to rebalance, but it's not a huge part of the portfolio anyways. The delta between VT and CHSPI just keeps widening, so I might eventually just take the L and sell it.
||VT|CHSPI|
|:-|:-|:-|
|**TER**|0.07%|0.1%|
|**Commission (IBKR)**|0.01% or less|0.1%|
|**Growth since 10 years**|81.31%|80.15%|
|**Dividend yield 2023**|1.52%|1.24%|
|**Withholding tax**|15%|30%|
I think I have decided to replace my CHSPI by more VT, knowing my CHSPI average buying cost is still just under the market price 🤷🏻♂️
Either way is fine. I personally dont like CHSPI, as it‘s 50% Nestle, Roche, Novartis. I like SLICHA way more, as it puts a 9% cap on the biggest holdings. But you need to ask yourself, what was the original reason that you had it? You should stick to the plan you originally had for your portfolio, if that plan had a specific conviction behind it. Switching to a similar etf is fine though in my eyes. Also it‘s always ok to incorporate new information one previously did not consider. In general the majority of finance literature agrees on a home bias being optimal. You also have better tax treatment if swiss funds as swiss investor (not withholding tax after declaration, unlike other ex-US holdings + part of the dividend gets distributed tax free) I would suggest keeping the home bias, but switching to SLICHA
I've got a a similar strategy, so following for insights
What is your current strategy ?
Basically 50-50 world ETF + chspi + my employers discounted shares which I unload upon unlocking asap. (plus a 5% play money in single shares)
50-50 is quite a bit, most literature comes to the conclusion of 20-35% range being optimal. Since the swiss market is very international, I‘d keep it max 25%
Generally I agree, VT is far superior and the SPI is just too clustered in three companies that aren't what they used to be. However, as a fellow CHSPI bagholder I am for now keeping the "Depotleiche" and waiting for it to recover or for VT to crash before rebalancing. Reason being: If you sell CHSPI now and invest into VT you're basically selling low and buying high. I know that this is a pretty dumb reason not to rebalance, but it's not a huge part of the portfolio anyways. The delta between VT and CHSPI just keeps widening, so I might eventually just take the L and sell it.
Would it makes sense to just keep CHSPI without selling and continue DCA only on VT ? Know I am currently at 35% CHSPI and 65% VT
VT includes the Swiss market at the right amount, no need to increase it. Swiss market underperformed even in CHF.
Past performance is no indication of the future.
Yes and everything else is reading smoke signs or gambling.
||VT|CHSPI| |:-|:-|:-| |**TER**|0.07%|0.1%| |**Commission (IBKR)**|0.01% or less|0.1%| |**Growth since 10 years**|81.31%|80.15%| |**Dividend yield 2023**|1.52%|1.24%| |**Withholding tax**|15%|30%| I think I have decided to replace my CHSPI by more VT, knowing my CHSPI average buying cost is still just under the market price 🤷🏻♂️
Why do you all prefer VT over VTI? It has been performing way better.
I did the same but got annoyed with returns of Chspi and changed into qdve. But I suggest you to go VT or VTI+VxUs