3-Year Review of Monthly 1 Million Won ETF Investing (feat. Regrets and Resolutions)
Since 2021, I've been putting 1 million won a month into the S&P 500 and Nasdaq, split half and half. I went through the post-COVID downturn and last year's rebound, and here's what I've taken away.
To start with the conclusion, the biggest thing was "just keep investing." If I had sold out of fear in the middle, things would be different now.
The numbers show roughly 40% in gains, but the exchange rate had a big impact. It seems I was lucky to have invested when the dollar was strong.
10 answers
40% over 3 years is pretty good, isn't it? lol I'm so jealous.
I also started investing similarly in 2021, and when it hit -20% in the middle, my hands were really shaking. But holding on instead of selling turned out to be a genius move. Like the OP said, continuing to put money in is probably the hardest and most important part.
But getting lucky with the exchange rate is just luck, not skill. I think we should leave that part out if we want the review to be fair.
This is correct lol
Well, that's a bit... 2021–2024 was just an especially good stretch, but it's risky to generalize that the next three years will be the same. Rates were at zero back then, and they aren't now.
If you split it half S&P 500 and half Nasdaq, it's effectively not that different from going all-in on Big Tech. It's closer to concentration than diversification. Give this some thought when you rebalance later.
Got a source?
I had the opposite experience—I sold out of fear. In 2022, I couldn't take being down 15% anymore, so I sold everything, and when it rebounded the next year, it really messed me up mentally. The lesson I learned then was 'don't sell,' and since then I just trust the automatic transfers and don't even look lol
Thanks for the review. Seeing the numbers laid out makes it much more relatable. By any chance, did you set your buy timing to a fixed day each month?
I mean, if it's half Nasdaq and half S&P 500, the correlation is basically 1—calling that diversification is kind of ridiculous, isn't it? If they'd mixed in dividend stocks or bonds, I could at least understand it.