Začínáme s investováním
How to Build Your First Simple Portfolio from 2 ETFs
Key takeaways
- A portfolio of two ETFs — one equity and one bond — covers the basics of diversification for most beginners.
- The longer your investment horizon, the greater the equity share that brings you higher potential returns.
- Bonds in a portfolio dampen fluctuations — when equities fall, bonds don't drop as much or may even rise.
- Once a year, check the ratio of the funds and rebalance if needed.
Two ETFs in a portfolio are enough to cover the entire world of equities and bonds and sleep soundly at night.
Why two ETFs and not one
One global equity ETF is a great start. But equities can fall 30–50 % in the short term. Someone who also holds bonds in their portfolio sees a smaller loss during a crash — because bonds behave differently from equities. That way they don't panic and don't make a mistake. Building a first portfolio is explored in more detail in how to build your first portfolio.
Which two ETFs to choose
- ETF no. 1: Global equity index — tracks hundreds to thousands of companies worldwide. Examples: FTSE All-World, MSCI World. Look for UCITS Acc with a low TER.
- ETF no. 2: Bond index — tracks government or corporate bonds. Examples: eurozone government bonds or global bonds hedged to euros. Again look for UCITS with a low TER.
How to maintain the portfolio
Once a year, check whether equities have grown so much that their share has exceeded your target. If so, buy more bonds in the coming months — or sell part of the equities. This process is called rebalancing. Once a year is sufficient for beginners.
When to move to a more complex portfolio
The answer is: you never have to. Thousands of successful investors hold only two or three ETFs for their whole life. Complexity is not an advantage. Simplicity that you stick to beats a complex strategy that you abandon.
FAQ
Do I have to have bonds in my portfolio, or is one equity ETF enough?
It depends on your investment horizon and psychological resilience. If you're investing for 20+ years and can endure a 40 % drop without selling, one equity ETF is sufficient and simpler. Add bonds if fluctuations stress you out or you have a shorter horizon.
How do I know if I have the right equity-bond ratio?
The right ratio is the one at which, in the worst crisis, you won't panic and sell. If you're not sure, start more conservatively (e.g. 60/40) and increase the equity share as your experience grows.
What is rebalancing and do I have to do it?
Rebalancing is restoring the fund ratio to the original target. If equities have grown and now make up 75 % instead of the planned 60 %, you buy more bonds or sell part of the equities. Once a year is enough and it takes ten minutes.