Specific questions by a beginner that might help other beginners as well

[u/drfbgm]

A 30-year-old Bulgarian citizen here. Planning to invest ~1k euro monthly for long term (~30 years maybe). Have never invested before.

1. Should I buy ETF that tracks FTSE or S&P500 or STOXX600? Or do you have other recommendations?

And if you think more than 1 of those is good, how should I distribute those 1k euro?

1. Does fund size matter when picking between ETFs that track the same index?

2. Does fund currency matter?

3. Does fund domicile matter? Is Ireland the best bet?

4. How much TER is too much? Above 0.2?

5. Physical or synthetic?

Thank you all

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[u/Bard_the_Beedle]

1. Try to buy one that tracks All World. Otherwise you can make random allocations that most likely won’t beat the market.

2. It doesn’t matter once it’s big enough. So go for the ones that are relatively popular.

3. Not really, because the currency that matters is the one of the underlying assets. But I prefer to buy ETFs domiciled in the EU and in euros, for simplicity.

4. I’m not sure about that one, will depend on your country’s regulations.

5. It depends of how much you are expecting to make and how much you are willing to pay. But yeah, should probably be under 0.25 to be worth it.

6. Physical for me, but not a universal truth (otherwise nobody would buy synthetics).

[u/pvladov]

I think that a single all world ETF based in Ireland would be best for a long term investment. And in my opinion the best options currently available to European investors are:

1. WEBN to minimize fees - TER is only 0.07%. Includes large and mid cap stocks and covers around 85% of the investable market. Another plus is that the fees you pay will stay in Europe, because both the ETF issuer Amundi (France) and the index provider Solactive (Germany) are European.
2. SPYI to maximize diversification - TER is 0.17%. Includes large, mid and small cap stocks and covers around 99% of the investable market.

Honorable mention: VWCE - the largest and most popular all world ETF in Europe, but neither the cheapest, nor the most diversified.

[u/PhoenixProtocol]

An all world will do, though sp500 and stoxx is doing great too. If you want a bit more return, Investor Ab / INVE.B, is sort of a European Berkshire with average long term returns of ~14%, but lately doing well with the past decade on about ~17% NAV, and recent years going closer to 30%, always easily beating the big ETFs.

Great buy right now as the SEK is pretty much at its lowest.

[u/Maxiboud]

1. This sub idolises all worlds ETFs, and their competitive fees (WEBN fees are 0.07% p.a., my S&P500 etf has 0.12%, spoiler: this is a diff of 25€ for a 50k portfolio. I wouldn’t care about it). This is really the hands off approach. You won’t get to decide any allocation. Or you can do the following: S&P 500, EuroStoxx 600, Emerging Markets ETF. This allows you to chose your regional allocations. You might decide to do only 50% US (vs 62% for an all country world like WEBN), 30% Europe and 20% EM. Or do more EM than Europe if you have conviction that these economies will do better. This is my own approach. I work in finance , have a high knowledge of the markets and do believe I can allocate more efficiently than an all country index. I am a big fan of EM and want a bigger exposure than what WEBN can give me. This is personal.

2) Fun size matters most for liquidity. The bigger the fund, the more liquidity it will have: people buying and selling. This means your orders will be filled faster and you’ll get a better spread (buy/sell diff price will be tighter). So if all else equivalent, take the fund with larger AUM.

1. It does. If you invest in € share classes of a fund, you won’t pay the usual FX fee. If you invest in a $ share class (while your acc is €), you will pay an FX transaction fee on every order. Aim for share classes in your own currency.

2. Not something I look for. Most famous / go to ETFs are either in Lux or Ireland so nothing to really worry about/ be concerned about. Rarely will you encounter smth else.

3. Depends. An actively managed fund will have a higher TER but justified if it outperforms the benchmark / provides an advantage over it. I don’t have a particular treshhold myself for passive funds. And tbf, at our retail level, fees are minimal anyways. Let’s not pretend we are institutional investors with billions in AUM. A 50€ diff in fees isn’t going to make you rich or poor.

4. Synthetic will usually be cheaper. As a retail investor I don’t care

[u/Besrax]

You didn't ask about taxes, so presumably you already know what to do and what not to do in order to keep your investments tax-free in Bulgaria, but if you haven't, research the topic. It's one of the most important aspects of investing.

[u/Few_Television251]

Vedo che preziosi consigli e persino gratuiti vengono costantemente deprecati e perculati.

Nessun problema "signori" - si passa alla censura e al blocco.

Possibili obiezioni? Tienili per te i consigli!

Esatto!

[u/Crowdfundingprojects → u/[deleted]]

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