It seems like we could have just as well closed the stock market for nine months. Sure, we would have missed a lot of volatility, but the end result would have been about the same. The performance of my portfolio, as well as of the AEX index, was within +/- 1% of the start of this year. What did change however, was the composition of my portfolio (something that couldn’t have been achieved without an open market, of course). Skagen Global continued to disappoint, so I got rid of it. The result of this fund was a 12,5% profit in 14 months.
Most of the proceeds of this sale was kept in cash. Only a fraction is reinvested in iShares Core MSCI World UCITS ETF (quite a mouthful). This ETF tracks the MSCI World index. Trackers are extremely suitable for investors who just don’t have the time to study companies or don’t have the capacity to do so. They are very cheap compared to mutual funds, and although they don’t beat the index (neither do most of the mutual funds), they will consistently come close to the returns of the index they follow. One thing I made sure of was that the ETF I invested in really owns the stocks and doesn’t replicate the index returns using derivatives. By using derivatives an ETF could bring risks you don’t want to have or don’t even realize you have.