9 Years of ETF Investing: What I Learned

Finance-focused summary (ETF/index investing, lessons learned over ~9 years)

Market drawdowns & timing context (2017–2026 referenced)

The speaker emphasizes that even disciplined ETF investing will face prolonged periods where portfolios are down:

• 2018: portfolio down ~14% (peak-to-trough point referenced)
• COVID crash (2020): fell >30%, then recovered after stimulus
• 2022 bear market: correction ~16%
• 2023 (tariff fears): down ~20% from highs at one point
• Geopolitical tensions (recent): briefly ~7% drop

Macro/geo backdrop cited as recurring “reasons not to invest”:

• Rising interest rates and trade war concerns (2018)
• Brexit chaos and recession fears (2019)
• Pandemic lockdowns; “fastest bear market” then stimulus recovery (2020)
• Rising inflation, supply chain chaos, market running “too hot” (2021)
• Aggressive rate hikes, long-term bond losses, war in Ukraine (2022)
• Banking crisis and recession worries (2023)
• US election uncertainty; rate hikes in Japan and yen carry trade fears (2024)
• Tariff shocks in April (2025) “crashed the market”
• Surging oil prices potentially reigniting inflation/interest rates (2026)

Performance reference: By not waiting for “perfect timing,” they claim an average annual return of ~11.62% over 9 years.

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ETFs & instruments mentioned

• ETFs / index investing (core focus)
• Global equity ETF (single diversified ETF used for new investments from late 2018 onward)
• Distributing vs accumulating ETF versions
• Small-cap tilt (initially added)
• Forex trading (mentioned via a friend’s automated forex trading; resulted in loss)
• Gold
• Bitcoin
• Sector ETFs
• Specific stocks
• High-yield savings account (used as an emergency fund; ~6 months of expenses)

Tickers: None explicitly provided in the subtitles.

Company financials / valuation multiples: None discussed.

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Step-by-step / methodology framework (as described)

Long-term ETF approach they converged on

• Use one diversified global ETF for new contributions
• Automate monthly investing (recurring contribution)
• Stick with the plan through market drawdowns
• Simplify portfolio construction over time (reduce multi-ETF complexity)
• Choose between:
  • Distributing ETFs (cash dividends into account)
  • Accumulating ETFs (dividends reinvested; typically more tax-efficient in Europe)

Portfolio simplification timeline (explicit)

• Jan 2017: started with a robo advisor
• After a couple months: shifted to buying/holding ETFs directly and avoided ~0.8%/yr robo management fees
• Early period: over-complicated with 6 ETFs + small-cap tilt + precise allocations
• Late 2018: simplified again → single global ETF for new investments
• From 2021: switched to accumulating ETFs (tax efficiency rationale)
• Later: changed fund provider due to lower fees, but kept older ETF shares to avoid realizing taxable gains too early

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Key numbers & explicit recommendations/cautions

Risk & behavior lessons tied to concrete outcomes

• Staying invested is hard due to repeated large drawdowns (examples above).
• Chasing alternatives during drawdowns can cause errors; they mention missing best days risk.
• Personal caution: They lost €10,000 total after investing in automated forex trading based on a friend’s recommendation without understanding the risks.

Fees / cost thresholds

• They moved away from robo advisor due to 0.8% yearly management fee.
• For ETF selection, they argue that once ETF expense ratios are “low enough”:
  • Below about 0.2%/year, differences like 0.07% vs 0.15% are not expected to radically change long-run outcomes.

Savings rate emphasis

• Biggest driver of portfolio growth (per the speaker): savings rate (income minus spending), invested every month.
• Recommendation: increase monthly investable amount by:
  • earning more
  • cutting unneeded expenses They claim this matters more than tiny ETF fee/index differences.

Dividends & taxes (Europe-focused)

• Mechanism: when dividends are paid, share price typically adjusts downward by roughly the payout (money moves pocket-to-pocket).
• Tax note: In most European countries, dividend distributions may be fully taxed upon receipt.
• Preference stated: accumulating ETFs, because dividends are reinvested and (in their view) investors are generally taxed only upon selling shares at profit (more compounding efficiency).
• Explicit caution/disclaimer on jurisdictional differences:
  • Example: Austria—they still pay some taxes even with accumulating ETFs annually.
  • Recommendation: “check the rules wherever you live.”

Emergency fund & forced selling risk

• Recommendation: keep ~6 months of living expenses in a high-yield savings account.
• Rationale: emergencies arrive during market downturns, and forced selling turns paper losses into real losses.
• Emergency fund size is situation-dependent (e.g., self-employed, young child → larger buffer).

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Eight lessons recap (as financial takeaways)

1. Stay invested: psychological difficulty is larger than mechanics; expects drawdowns (examples given).
2. There’s always a reason not to invest: don’t wait for “perfect calm.”
3. Automation beats motivation: monthly recurring investment; remove emotion/decision-making.
4. Complexity is the enemy of consistency: simplified strategy beats overly optimized but hard-to-follow plans.
5. Savings rate matters more than ETF choice: stop obsessing over tiny basis-point differences; maximize investable contributions.
6. Dividends are mostly psychological: focus on total return including taxes, not cash-flow satisfaction; accumulating ETFs often more tax-efficient in Europe.
7. Boring is good: passive global ETF approach; avoid chasing what’s winning now.
8. Emergency fund protects your strategy: prevent selling during crashes; they use ~6 months expenses.

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Disclosures / disclaimers

• “Nothing I mentioned today was meant as investment advice.”
• “I’m just openly sharing my personal opinion based on my own experience.”

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Presenters / sources

• No named presenters or external sources are mentioned in the subtitles.
• Quote attribution: Warren Buffett (“the stock market is a device for transferring money from the impatient to the patient”); no additional sourcing details provided.