Frequently asked questions
Real answers to common misconceptions about investing.
Losing everything is possible if you invest in a single company that goes bankrupt — Enron, Lehman Brothers, or a startup that disappears overnight.
That is precisely why a global ETF like IMIE or IWDA is structurally different. You hold fractions of thousands of companies spread across some twenty developed and emerging countries. To lose everything, the entire global economy would have to collapse simultaneously and permanently — a scenario in which your savings account, property, and pension savings would probably also be worthless.
What you can lose, however, is part of your capital temporarily. In 2008, markets fell by ~50%. Depending on the index and currency, nominal recovery took between 3 and 5 years. In 2020, -35% in March, +70% over the year. Volatility is real — but it is not the same as permanent loss.
The practical rule: only invest money you will not need in the next 5 years.
This is the most common fear — and the data shows it is largely overestimated.
Imagine you had invested 10 000 € on 1 January 2008, just before the worst financial crisis since 1929. In 2024, despite the 2008 crash, the European debt crisis, COVID, and the inflation of 2022, your investment would be worth approximately 35 000 € to 40 000 €.
First, if you invest gradually (e.g. 200 €/month), a crash is actually an opportunity: you buy more shares at the same price. This is what is called dollar-cost averaging.
Second, diversified global markets have always eventually recovered over the long term. Not always quickly — sometimes in 3 years, sometimes in 10 — but over a long horizon, the trend is structurally upward. (Some local markets like Japan took several decades — all the more reason to diversify globally rather than betting on a single country.)
The real question is not 'is now the right time?' but 'do I have a long enough horizon?'
Because past performance does not predict future performance — and the data proves it.
In the 2000s, technology funds had the best historical returns of the previous decade. Those who bet everything on them in 2000 lost 80% of their capital when the dot-com bubble burst.
In the 2010s, emerging markets had outperformed. Investors who switched to them then suffered a decade of underperformance relative to developed markets.
The product with the best historical return is often the one that benefited from a specific trend — and those trends reverse.
The strategy that works over the long term is not chasing past performance, but buying the entire global economy at low cost and waiting. That is exactly what a global ETF does.
No — and the data is unambiguous on this point.
A well-known Schwab study compared five strategies over 20 years, including two extremes: always investing at the worst moment of the year (just before each crash) vs always investing at the best moment.
Result: even perfect timing would have generated only ~8% additional return over 20 years compared to immediate investment. By contrast, the difference between investing immediately and staying in cash waiting for the 'right moment' was 30 to 40%.
The investor's enemy is not bad timing — it is inaction.
The only exception: if you need this money in less than 2 years, do not invest it in equities.
Less than you think.
Most recommended brokers (MeDirect, Saxo) impose no minimum deposit. Some recent global ETFs like WEBN cost around 5 € to 10 € per share. The classics like SWRD cost ~40 €, IMIE ~220 €. Most recommended brokers allow you to start from 50 € to 100 € by buying cheaper ETFs or via automatic savings plans.
In practice, it is advisable to invest at least 100 € to 200 € per month so that fixed transaction fees (often €0 at MeDirect) remain negligible relative to the amount invested.
What matters more than the starting amount is regularity. 200 €/month for 30 years at 8% annual return ≈ 272 000 €. 2 400 € invested just once ≈ 24 000 € over the same period. Regularity beats the initial amount.
No — it is actually one of the main advantages of ETFs over other investments.
Once your broker account is open and your first purchase made, management comes down to:
There are no daily decisions to make, no market monitoring required, no frequent rebalancing. The 'buy and hold' strategy is not only the simplest — it also statistically outperforms active trading for retail investors.
Your ETFs are protected — this is one of the most important protections to understand.
The ETFs you buy are not the property of the broker. They are held separately from the broker's balance sheet, in a segregated estate. If the broker goes bankrupt, your assets do not form part of the insolvent estate — they are returned to you.
In practice, a liquidator simply transfers your positions to another broker.
Furthermore, brokers operating in Belgium or the EU are subject to strict regulatory capital requirements. MeDirect is supervised by the Maltese MFSA and the Belgian FSMA. Saxo Bank by the Danish DFSA.
Cash deposit protection (not ETFs) is limited to 100 000 € by the guarantee fund — an additional reason not to leave idle cash at your broker.
Both approaches work — but not for the same profiles.
Investing all at once (lump sum) is statistically optimal: studies show that in the majority of cases (~60 to 70% depending on the study), investing the full amount immediately outperforms spreading over 12 months, because markets rise more often than they fall.
Investing gradually (DCA — Dollar Cost Averaging) is psychologically easier: you avoid the anxiety of investing just before a fall, and you smooth your average purchase price.
Our practical recommendation:
It is simpler than you imagine. In three steps:
Once the order is executed, your shares appear in your portfolio within 1 to 2 business days (T+2 settlement). Nothing else to do.
You can — but you are taking a structurally different risk.
An individual share, even from an extraordinary company, can lose 70, 80, or even 100% of its value. Tesla lost 75% between 2021 and 2022. Meta lost 77% the same year. These are not obscure companies.
The problem is not choosing the wrong company — it is that even choosing the right one, you do not know when it will outperform or underperform.
Apple typically represents between 4% and 6% of the MSCI World index. By buying IWDA, you already own Apple — as well as Microsoft, NVIDIA, Nestlé, Toyota, and 1 400 other companies. If Apple doubles, you benefit. If Apple collapses, the impact on your portfolio is limited.
Diversification is not a compromise on return — it is the only free protection that exists in finance.
For a single-ETF strategy (IMIE, all-in-one), the answer is simple: no. The ETF rebalances automatically internally. You have nothing to do.
For a two-ETF strategy (IWDA + EMIM for example), a slight imbalance gradually develops because the two components do not grow at the same pace. An annual rebalance (selling a little of the better performer, buying the other) is more than sufficient.
In practice: if you invest monthly, simply direct your contribution towards the ETF that is furthest below its target. This is the simplest and most tax-efficient method (no sale = no CGT).
Both are excellent choices. The difference is smaller than you think.
IWDA (MSCI World): ~1 400 companies, developed markets only, ~70% US. TER 0.20%. Slightly better over the past 20 years because emerging markets underperformed.
IMIE (MSCI ACWI IMI): ~9 000 companies, developed + emerging markets + small caps. TER 0.17%. Maximum diversification, slightly more representative of the global economy.
Our recommendation: IMIE for a beginner who wants a definitive solution without asking further questions. IWDA if you are comfortable with a more concentrated exposure to developed markets.
Both have the same Belgian tax treatment (TOB 0.12%, no Reynders tax, same CGT). The performance difference over 30 years will probably be less than 0.5% per year.
Real estate is not a bad strategy — it's a different strategy, which requires much more than just money.
**What is leverage?** It's the act of using the bank's money to increase your investment capacity. A bank will lend you for bricks, not for ETFs.
Without leverage, Belgian real estate has historically delivered 6% to 8% per year — comparable to a global ETF. With leverage (e.g., €50k down payment for a €250k property), your return on initial investment could reach 15% to 20% during the era of low rates.
But this leverage is only beneficial if the property's yield is higher than the mortgage rate. With the rise in rates, this effect can become neutral or even destroy value if the cost of borrowing exceeds the net yield.
Add to this 15% entry costs, total illiquidity, and active management that feels like a second job. ETFs win on simplicity, liquidity, and time.
It depends on your broker.
With a Belgian broker (MeDirect, Saxo Bank Belgium, Bolero, Keytrade): the TOB is withheld and declared automatically at each transaction. You have nothing to do for the TOB.
Capital gains (CGT 10% above €10,000/year) must be declared in your annual tax return. Your broker provides you with an annual transaction statement that simplifies this declaration.
With certain foreign brokers (Interactive Brokers, Trade Republic): you are responsible for calculating and declaring the TOB yourself every two months — a real administrative burden with risk of fines in case of delay.
Other popular foreign brokers like DEGIRO now automatically handle the TOB for their Belgian clients, but the précompte mobilier and CGT 2026 still need to be declared manually. Always check your broker's current terms — these practices may evolve.
Three taxes may apply on sale, depending on your situation:
For the vast majority of investors with a standard equity ETF portfolio, only the TOB and possibly the CGT apply.
No — and this is a very common misconception that can be costly.
Belgium does have an exemption on the first €833 of annual dividends (2026 amount). In practice, you can reclaim up to €249.90 in tax per year through your tax return (codes 1437/2437).
But this exemption explicitly excludes investment funds and ETFs. It only applies to dividends from individual shares held directly — a KBC, AB InBev, or Apple share purchased directly on the stock exchange.
If you hold a distributing ETF like VHYL, you pay 30% withholding tax on every dividend paid, from the very first cent, with no possibility of reclaiming it.
This is one of the main reasons Belgian investors favour accumulating ETFs: dividends are automatically reinvested within the fund, never distributed, and therefore never trigger withholding tax.
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These answers are provided for educational purposes only and do not constitute investment advice.
Last updated: March 2026