Hello guys,
(EU based)
After debating myself about my factor tilt portfolio, I concluded that by the fact of having always questions popping up on my head, probably I needed to adjust or give up on that.
I started to invest last year, and through time I have been learning and consolidated it.
So, my current portfolio:
70% FTSE All world
15% Avantis Small Cap Value
10% Msci World Quality
5% Msci World Momentum
I have been exchanging some ideas with our most recent friends (chatgpt which contribute for the current portfolio, and now with co pilot and Gemini), and I have concluded that I ignored how this msci world etfs with supposed factor tilts are nothing but a more concentration of the mega caps. So, in the end, no factor at all.
According this, I intend to remove quality and momentum. I have been wondering if multi factor etfs should be worth, but I see the same as I wrote before: most of them being carried by megacaps.
Right now, I would stick to:
80% FTSE All world
20% Avantis Small Cap Value
Or, I checked Avantis global equity etf and it seems to be even more diluted in terms of market cap weight, which is great, and their also have factor tilt on it. However, I believe that if I want to incorporate it in my portfolio it must replace FTSE All world, right? What is your perspective over it? I am also concerned about the higher TER (not big difference, but well, it can make difference in the long term)
Thanks!