Thinking of Investing €50,000? Here Are 5 ETFs to Buy and Hold

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ETF Net Inflows Exceed 200 Million Dollars

According to Fidelity, net inflows into ETFs surpassed 200 million dollars in the second quarter of this year, bringing the annual total to an impressive 404 billion dollars.
This marks an 85% increase compared to the first half of 2023.

The Allure of ETFs

ETFs provide enhanced diversification in comparison to investing in a single asset.
This characteristic makes them particularly appealing amid the current market climate where volatility is a common theme.

Investment Opportunities for 50,000 Euros

For those looking to invest 50,000 euros in ETFs, several financial products should be considered for long-term holding.
Below are top recommendations:

1) Avantis International Small Cap Value ETF

This fund focuses on small-cap, low-valued, publicly traded companies outside the U.S., offering high profitability ratios.
Notable holdings include British retailer Marks and Spencer and Swiss bank Swissquote.
Year-to-date, this ETF has appreciated by approximately 7.83%, outperforming its benchmark, the MSCI World ex-U.S.
Small Cap, which is up by 5.53%.

2) DFA Dimensional U.S.
Small Cap Value ETF

The Dimensional U.S.
Small Cap Value ETF (DFSV-US) targets hard-to-reach segments of the market.
Key holdings feature Abercrombie & Fitch, Cadence Bank, and Commercial Metals.
This recommendation aligns with a renewed interest in the Russell 2000 index, which saw significant gains last week before a slight pullback.
This ETF has shown a 6% rise this year, while its benchmark, MSCI USA Small Cap, has climbed by 6.84%.

3) JPM Global Equity Multi-Factor UCITS ETF

This ETF’s portfolio includes well-known companies such as Arista Networks and Walmart, alongside international firms like Deutsche Telekom and Novo Nordisk.
A major advantage of funds like JPGL is their capacity to provide both U.S.
and non-U.S.
exposure within a single investment, reducing the need for multiple ETFs.
To date, this ETF has generated returns of approximately 10% in 2023.

4) Fixed Income ETFs

Investors seeking exposure to fixed income should consider the Dimensional Global Core Plus Fixed Income ETF (DFGP-US).
U.S.
listed bond ETFs are generally favorable for U.S.
investors; however, the Vanguard USD Corporate Bond UCITS ETF (VCPA-GB) offers an advantageous tax structure, being domiciled in Ireland and employing a passive investment strategy that aims to replicate the Bloomberg Global Aggregate Corporate Index in USD.
Since the beginning of this year, the Dimensional ETF has yielded an increase of 1.53%, while Vanguard’s ETF has achieved a 2.53% return.

Disclaimer

The information and views expressed in this article should not be taken as the sole basis for any investment decisions.
Readers retain full responsibility for their investment choices, as each investor knows their own risk tolerance and time horizon.
This article is intended for informational purposes only and does not constitute an offer or solicitation for public savings.

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