Hello everyone! New in the forum but long time lurker, I'm very glad to write my first post. I'm thankful for all the wisdom and knowledge I could read around here. I am a Spaniard in my early 30s. After a lot of reading, I decided to start a portfolio for wealth protection and moderate growth. The PP seemed a good choice, but I am not totally confident when implementing the European version of it. So, I have seen some suggestions in the forum for international investors of creating a 1/3 U.S. dollar currency denominated stocks, 1/3 local currency denominated intermediate term bonds and 1/3 non-fiat currency gold -
see here. In Spain, mutual funds have some advantages over ETFs as you can move money between them without having to pay capital gains. This is the reason why I am using them. Also, no fees for buying or selling either. So, this is the portfolio I have come up with:
- iShares US Index Fund. S&P 500 indexed fund. Not much to say here. I know Irish-domiciled ETFs holding U.S. equities are subject to a 15% withholding tax rate on dividends, compared to the 30% rate for ETFs domiciled in other European jurisdictions or Irish-domiciled mutual funds, though.
- iShares Ultra High Quality Euro Government Bond Index Fund. Markit iBoxx Eurozone AAA Index indexed fund. Holding AAA European governments euro denominated bonds, basically Germany and Netherlands. Around 7 years duration, weighted average maturity of 8.5 years. Hopefully adding some flight to quality protection.
- iShares Physical Gold ETC. Gold ETC, in theory 100% backed by physical gold bullion, LBMA market. I need to use an ETF in this case as there is no mutual fund equivalent.
Portfolio TER around 0.12%. All accumulation funds as they are also more tax advantageous than distribution. I am a remote worker and have low monthly expenses, so I can save a good chunk of my salary. The idea is to distribute 60% of the monthly savings to this portfolio and 10% to cold storage Bitcoin - I firmly believe in the value proposition. The final 30% will go to a cash deposit under the 100k euros threshold the ECB guarantees, where most of my current savings are at the moment, as I am planning to buy a house in the medium term. What do you guys think? Thank you so much in advance for all you input.
