*** I will start a papertrade porfolio to buy IFSW and EMVL, target 10% return for next 10 years, will it beat my EPF 5.8% return?
Best Strategy: Critical Strategy: The "Glide Path"
Instead of picking one and staying there forever, consider this 10-Year Master Plan for a Malaysian investor:
Years 1–4 (The Accumulation Phase): Go 60% EMVL / 40% IFSW. Since you are starting in a low-valuation environment for EM and a rate-cut cycle for the US, you want maximum exposure to the "rebound."
Years 5–10 (The Harvest Phase): Once you see EM returns hit that 10-12% mark, rebalance back to 50/50 or 60/40 (IFSW/EMVL). This locks in your gains and moves money into the "safer" developed markets of IFSW.
Mcm ini more better:
| ETF | Ticker | Function in your Portfolio | Why it helps hit 10% |
| S&P 500 (Acc) | CSPX | Growth/Momentum Anchor. Captures the massive US tech and AI expansion. | Historically ~12–15% CAGR. This is your main engine. |
| World Multifactor | IFSW | Factor Diversifier. Holds Developed Markets (US, JP, EU) but selects for Value & Quality. | Acts as a safety net if US Tech (S&P 500) becomes overvalued. |
| EM Value Factor | EMVL | Emerging Market Engine. Targets the "cheap" side of EM (China, India, Brazil, etc.). | EM Value typically recovers strongly when the USD weakens or rates fall globally. |
CSPX (The Growth Engine): While S&P 500 valuations are currently considered "rich" (high P/E ratios), the ongoing AI supercycle is projected to keep earnings growth in the double digits (13-15%) for at least the next two years.
IFSW (The "Japan & Europe" Play): Analysts expect market leadership to shift away from US mega-caps toward international "Value" and "Quality" stocks in 2026. IFSW captures the recovery in Japan (driven by "Sanaenomics" and corporate reform) and the UK/Eurozone where interest rate cuts are expected to boost consumption.
EMVL (The "Undervalued" Booster): Emerging Market Value (like Taiwan Semi, SK Hynix, and Samsung) is currently seen as a "coiled spring." EMVL is trading at a significant discount compared to US tech but holds the same semiconductor giants that power AI.
To aim for 10% while accounting for Japan's recovery and US rate shifts:
50% CSPX: Pure US growth and efficiency.
30% IFSW: Global diversification including Japan and Europe.
20% EMVL: High-upside potential from undervalued Emerging Markets.
***
For Malaysian investors, the path to a 10% annual return isn't found in US-domiciled ETFs (due to the 30% tax trap). It is found in Ireland-domiciled UCITS ETFs. By using Interactive Brokers, we can access the "Factor" premiums that have historically outperformed the broad market.
Why These Two?
IFSW (Developed World): Instead of just holding the biggest companies, this ETF filters for "Quality" (strong balance sheets) and "Momentum" (stocks going up). It is your core engine.
EMVL (Emerging Markets Value): Emerging markets are currently cheap. EMVL buys the "undervalued" companies in regions like India and Taiwan. In 2025, this "Value" factor has been the top performer globally.
The Tax Advantage: Both are Accumulating. Dividends are reinvested inside the fund. For Malaysians, this means 0% tax on the growth and no hassle of manual reinvestment.
The Strategy: By pairing the stability of the West (IFSW) with the aggressive value-recovery of the East (EMVL), we create a portfolio designed to capture the 10% return target over a 10-year horizon.
Critical Analysis: The 60/40 Split (The "Aggressive" Projection)
You asked if 60% EMVL / 40% IFSW is better for a 10% return. Here is the technical and macro projection for the next 10 years (2025–2035):
1. The Macro Thesis
The "Value" Cycle: We are exiting a decade of "Growth" dominance (US Tech). Historically, cycles flip. The next decade favors Value (EMVL).
The USD Cycle: If the US Federal Reserve continues to cut rates while Japan increases them, the US Dollar will likely weaken. This is a massive "booster" for Emerging Markets.
The Valuation Gap: EMVL trades at a Price-to-Earnings (P/E) of ~9.8x, while IFSW (Developed) is at ~19.9x. You are buying the 60% portion of your portfolio at a 50% discount compared to the West.
2. The 10-Year Return Projection
Probability of 10% Return: High, but with extreme volatility.
Projected CAGR: * EMVL: 10% – 12% (Assuming mean reversion of valuations).
IFSW: 6% – 8% (Assuming slower growth in US mega-cap).
Result (60/40 Split): 8.4% – 10.4%.
Technical Analysis: Entering the Market
EMVL (Emerging Value): Currently "Hot." YTD performance is near 40%. Technicals show it is near a short-term peak. Do not lump sum. * Entry: Use Dollar Cost Averaging (DCA) over 6 months to avoid buying at the 2025 high.
IFSW (World): Steady trend. It is less volatile than EMVL.
Entry: You can be more aggressive here, but keep an eye on the US 10-year Treasury yields.
Summary Checklist for You
Broker: Use Interactive Brokers (IBKR).
Account Type: IBKR Pro (Tiered pricing is usually cheaper for LSE trades).
Funding: Send MYR to Wise $\rightarrow$ Convert to USD $\rightarrow$ Deposit to IBKR.
The Trade:
Search for IFSW on London Stock Exchange (LSE).
Search for EMVL on London Stock Exchange (LSE).
Tax: No action needed. The "Ireland Domicile" handles the 15% US tax internally, and the "Accumulating" status handles the reinvestment.
My Final Verdict: If you want 10%, the 60% EMVL / 40% IFSW split is the most logical "Aggressive" path. It is risky because you are 60% in Emerging Markets, but it is the only way to capitalize on the current global valuation gap.