ETF Strategies

Key Takeaways

• The core-satellite strategy combines a broadly diversified base portfolio of low-cost ETFs with targeted additional investments in themes, regions or sectors with higher return potential
• ETF savings plans are characterized by low management fees, which are summarized in the total expense ratio (TER)
• Artificial intelligence, robotics and sustainable investments (SRI and PAB) are among the most dynamic growth themes for satellite portfolios in 2026
• Fund selectors recommend diversification across different regions in 2026, with a focus on underappreciated markets such as Europe, Japan and Emerging Markets
• During the distribution phase, investors should not close down their portfolios in one go, but withdraw partial amounts over years to utilize tax allowances multiple times

Core-Satellite Strategy as Framework

The core-satellite strategy has established itself as a core approach for ETF portfolio composition. The concept divides assets into two areas: a stable base portfolio (core) made up of broadly diversified, low-cost ETFs covers the most important asset classes and regions. As a supplement, investors use the satellite portfolio to make focused investments in themes, regions or sectors that promise higher returns depending on the market phase.

The core portfolio provides stability and reduces risk through broad diversification. The satellites enable outperformance through targeted positioning in dynamic growth areas. This structure prevents excessive concentration in individual positions and improves the risk-return profile. According to DAS INVESTMENT, six fund selectors recommend this allocation for 2026 as a proven method for product selection.

The weighting between core and satellites depends on risk tolerance and investment horizon. Long-term oriented investors benefit from the stable foundation of the core portfolio, while satellites offer flexibility for market opportunities.

ETF Savings Plans as Systematic Wealth Building

ETF savings plans are suitable for regular saving and can be set up with any online broker. The management fees of the fund company are summarized in the Total Expense Ratio (TER). This cost efficiency makes ETFs an attractive option for systematic wealth building.

Investors can adjust savings plan executions at any time, pause them or change the savings rate. This flexibility distinguishes ETF savings plans from traditional fund savings plans with fixed terms. During the accumulation phase, investors can utilize tax allowances that increase available capital.

During the distribution phase, experts recommend staggered withdrawals: instead of liquidating the portfolio in one go, investors should withdraw partial amounts over several years. This approach utilizes the tax allowance multiple times and reduces the tax burden on realized gains.

Cost Comparison: TER as Decision Criterion

The TER combines all ongoing costs of an ETF and varies depending on index construction and provider. Broadly diversified world ETFs typically have lower TERs than specialized thematic ETFs. Investors should consider the TER when selecting products, as even small cost differences can significantly affect returns over long investment periods.

Investment Themes 2026: Between Stability and Growth

In 2026, markets stand at the intersection of structural growth and geopolitical uncertainty. Artificial intelligence and robotics are among the most dynamic growth drivers of the global economy. AI systems are transforming industries from automation to medical diagnostics to software development, and are boosting productivity and efficiency at an unprecedented pace.

According to extraETF, Wellington Management recommends a balanced positioning for 2026: the right balance between enthusiasm for AI and discipline is crucial. Investors should increase their exposure to underappreciated sectors and regions and diversify across different markets. Europe, Japan and Emerging Markets offer opportunities beyond the strongly performing US technology stocks.

Sustainable Investments without Greenwashing

SRI (Socially Responsible Investment) and PAB (Paris-Aligned Benchmark) have established themselves as stricter sustainability standards. A sustainable world ETF includes filtering according to sustainability criteria such as ESG (Environment, Social, Governance). SRI funds apply significantly stricter exclusion criteria than conventional ESG-screened funds and reduce the risk of greenwashing – the misleading representation of investments as sustainable.

Investors should examine which sustainability concepts fit their investment strategy. The criteria differ considerably between providers and influence portfolio composition.

Regional Diversification as Risk Reduction

Fund selectors advise expanding the toolkit for risk reduction in 2026. Broad geographic diversification reduces dependence on individual economies. While US markets have dominated in previous years, European and Asian markets are coming back into focus.

The core-satellite strategy enables this diversification: the core portfolio mirrors global indices, while satellites deliberately overweight underrepresented regions. Political risks and sectoral shifts affect individual markets differently – broad diversification dampens fluctuations in the overall portfolio.

Practical Implementation of Portfolio Strategy

Implementation begins with defining the core portfolio. Broadly diversified world ETFs or combinations of regional indices form the basis. The core portion should account for at least 70 percent of the portfolio to ensure sufficient stability.

Satellite positions supplement the portfolio with specific themes or regions. Investors can choose between different approaches: thematic ETFs focusing on artificial intelligence or robotics, regional emphasis on Emerging Markets or sustainable investments with SRI criteria. The weighting of individual satellites should not exceed ten percent of the total portfolio each.

Regular rebalancing ensures that the original weighting is maintained. Strongly rising positions are partially sold, weaker-performing areas are bought back. This discipline prevents individual satellites from dominating the portfolio and changing the risk profile.