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Ask HN: How to invest safely in Europe?

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Re: Ask HN: How to invest safely in Europe?

#51

Post by viraptor »

user5994461 wrote: post #21
viraptor wrote: post #14

Earlier quoted context omitted.

Not sure if these are available in Europe, but Vanguard in Australia offers hedged indexes like this one https://www.vanguardinvestments.com.au/retail/ret/investment... specifically to avoid the currency exchange floating.

Vanguard doesn't really exist in Europe per se. They have a range of funds in GBP in the United Kingdom, because the retirement system there is similar to the US. That's all. There is a handful of funds in EUR through an European subsidiary, but it's laughable compared to what is available in the US and they are pretty hard to buy.

I wasn't pointing out Vanguard really, just the hedged index option as a way to avoid the exchange rate issues.

Re: Ask HN: How to invest safely in Europe?

#52

Post by samsonradu »

hanoz wrote: post #17

You are in Europe yourself I take it? In the Eurozone? I'd forget bonds personally. With negative real interest rates, bonds are just the safest way to lose money slowly. You mention elsewhere you want to avoid currency risk in an ETF. You won't be able do that completely, but to keep it to a minimum you'd need an ETF composed of smaller European companies which have less of an international presence. I'm unexpectedl…

Even with negative interest rates bonds can turn a profit if the rates go even lower, as one does not need to hold them to maturity.

This happened during the past 3 months with German Bunds fe.

Re: Ask HN: How to invest safely in Europe?

#53

Post by seppel »

chvid wrote: post #49
seppel wrote: post #34

Earlier quoted context omitted.

I'm an EU citizen and I can buy, e.g, the iShares Core S&P 500 UCITS ETF (ISIN IE0031442068) which gives me access to the S&P 500 and is as cheap as it can get.

The spy etf has better liquidity and (probably) lower costs.

The iShares one is actually cheaper (TER of 0.07% vs. 0.09%) but it seems its tracking difference is worse (for the last years), so it seems the SPDR performs better. However, you can also buy the Vanguard S&P 500 UCITS ETF in Europe, which has also has a TER of 0.07% but an even better tracking difference than SPDR.

I don't think liqudity is a problem for such huge funds.

Re: Ask HN: How to invest safely in Europe?

#54

Post by indexinvestoreu »

> The main assumption is that one can expect to have a 6-7% return by investing in good ETFs. I have researched a little bit and I don't see how that can be achieved investing in the European bonds/stocks.

A reasonable investment strategy involving ETFs will involve investing in companies throughout the whole world. Not just European companies or US companies. Ideally you want to have an investment strategy that maximizes return for your risk profile. That strategy is independent of where you live. There are S&P 500 ETFs in the US and there are S&P 500 ETFs in the EU (try googling for "S&P 500 UCITS ETF").

> At the moment the safest bet seems to park money in monetary/government bonds that however don't return more than 1.5% on average. The "good ETFs" you mentioned that have a 6-7% return are anything but safe. They aren't as "safe" as bonds. the "good ETFs" you mentioned likely invest in companies, the stock market has a high degree of risk and volatility. That is fine in the sense that with greater risk comes greater reward. You should just keep in mind that if you want something safe you shouldn't be looking at anything that invests in equities.

> Can somebody provide some suggestion references about good investment strategies with a low risk profile in an european context? I've written a lot about it on my blog: https://indexfundinvestor.eu/2019/05/29/the-step-by-step-gui... I also have suggestions to books there.

Re: Ask HN: How to invest safely in Europe?

#56

Post by anonu »

If you are a US-based investor and want exposure to Europe, you can get some ideas by navigating the ETF groupings on https://pages.etflogic.io. (I built the page). You'll find all US-listed ETFs (2000+ of them) - many of which can easily and cheaply provide you exposure to the European markets.

VEA gives you exposure to European Developed Markets (equity). FEZ is the Euro-Stoxx 50 (equity)...

Re: Ask HN: How to invest safely in Europe?

#57

Post by Dansvidania »

vaggdan wrote: post #55
Dansvidania wrote: post #12

I am not sure if you are looking for suggestions on specific investment opportunities but check https://www.mintos.com

Do you have any experience with it? If yes, you mind sharing some words?

I do (www.mintos.com/en/l/ref/B3H9ZN referral link) and I find it a very good option. You pretty much buy shares in loans that are listed on the platform. Mintos screens the loan providers and evaluates them regularly.

I have used it for about two years for medium risk investments (~12%) and have had no losses so far.

It helps that many providers have a "buyback guarantee" that automatically repays you for investments if the payment is late for more than 60 days.

I just transfer an amount of money there every month, and the auto-invest feature just picks investments across providers.

I hope it helps, but feel free to ask specific questions if you like :)

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