Not financial advice.
Building your first €1,000 portfolio is one of the most important steps in your investing journey. At this stage, the goal is not to beat the market — it’s to build a balanced foundation, learn the process, and prepare for long-term growth.
Below is a clean, beginner allocation you can follow or adapt.
1. The Goal of a €1,000 Portfolio
With €1,000, the focus should be on:
- Low fees
- High diversification
- Easy automation
- Long-term growth
- Simple, stress-free structure
This is where ETFs shine.
2. Recommended Beginner Allocation
Here is a simple, diversified mix many beginners use:
📌 1. Global Equity ETF — 70% (€700)
This is the engine of your portfolio.
Choose a broad global ETF such as:
- VWCE (Vanguard FTSE All-World, accumulating)
- IWDA (iShares MSCI World)
- VWRL (Vanguard All-World, distributing)
Why this matters:
- Exposure to thousands of global companies
- Low cost
- Perfect “set and forget” core
Ideal for long-term growth.
📌 2. Bond ETF — 20% (€200)
This stabilizes your portfolio during market drops.
Options include:
- iShares Core Global Aggregate Bond (AGGH)
- Vanguard Global Bond ETF
Why add bonds?
- Reduces volatility
- Provides balance
- Smooths long-term performance
📌 3. High-Quality Dividend ETF or Stock — 10% (€100)
A small allocation for passive income + stability.
Options:
- SCHD (if available)
- Vanguard High Dividend Yield (VYM)
- Global Dividend ETF
- Or a strong dividend stock like JNJ, KO, PG
This adds a little income flavor to your portfolio.
3. Portfolio Breakdown Example
| Asset Type | Allocation | Amount (€) | Purpose |
|---|---|---|---|
| Global Equity ETF | 70% | €700 | Growth |
| Global Bond ETF | 20% | €200 | Stability |
| Dividend ETF/Stock | 10% | €100 | Income + diversification |
4. How to Maintain the Portfolio
✔ Continue contributing (€50–€100 per month)
Small amounts compound enormously over time.
✔ Rebalance once per year
Example: If global equities grow too much and become 80%, trim slightly and add to bonds or dividends.
✔ Automate everything
Set automatic monthly investing if your broker allows.
5. When Your Portfolio Grows Above €5,000–€10,000
You can add:
- Emerging markets
- Small caps
- REITs
- Thematic ETFs (tech, energy, health)
But in the beginning, simplicity always wins.
Final Thoughts
A €1,000 portfolio is the perfect place to start.
This structure gives you:
- Diversification
- Growth
- Stability
- Income
- Future scalability
Start small, stay consistent, and let time do the compounding.
Not financial advice.
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