Thanks for the feedback. The reason why I put the s&p IT is because of the return rate. Currently it is around 20%
If I took it off, the return rate could be around 13% it is like 7% down. Is there anything I could do to keep the return rate close to 20% without heavily investing in S&P IT?
Personally would say youāre really focused un tech
45%(iitu)
2%(msft,aapl)
something (0.27*20%) from VUSA as it also has 27% tech
something (0.20*20%) from VWRP which also has 20% tech
And this isnāt considering Google, Amazon and Tesla as tech.
So your very overweight on tech, you said you have tech just because the past return is high, let me tell you a secret: past returns donāt guarantee future returns.
So the only thing I would say is to reduce tech a bit and diversify sector-wise. For 10y maybe having bonds now is a bit early but that just depends on your risk tolerance.
I wouldnāt pay to much attention to the AAR, tech has been flying for a long time and may pose some risks due to valuations. But thatās just my view
Nice looking pie, I donāt know what your exact goals are nor do I know your time horizon but first thing I noticed was that 17% (+ exposure from the ETFs) in Energy strays far away from most indices so I would like to ask why so much energy? Just curious, you do have several different companies there and I would like to hear from you whatās your take on Enbridge and Marathon as the others are large integrated oils.
Also noticed that your tech, consumer disc. and communications services exposure was fully done through FAANG + twitter and tesla why such a focus on the biggest names? Maybe something like this might inform you on your expected return on large-cap growth stocks: Large Cap Growth Stocks (FB, AMZN, AAPL, GOOGL, MSFT, TSLA) - YouTube
I see you excluded materials, real estate, industrials and are underweight on consumer discretionary, consumer staples (why only tobacco?) and financials (two of large-cap diversified banks).
As I said before, absolutely nothing wrong with it but I would like to know your thinking behind your picks.
I think the big name FAANG focus is decent enough in that those are the shares that have historically driven up the market and will in all likelihood continue to do so while the companies maintain their standards and rate of growth.
By just investing in the top 5 shares that make the majority of any market tracking ETF, you may be much more volatile but you will see a year on year market beating return that has been pretty consistent for decades.
I would personally slip in Realty Income for some real estate exposure.
Appreciate this,well I chose these slices as have no previous knowledge or experience and thus,I picked whatās more familiar to me as brands.
Iām trying to read and study these past couple of weeks but still aināt something that you can just pick just like that.any specific suggestions would be highly appreciated
Agree with you that that you will track the majority of the ETF but historically they have underperformend:
For each decade starting 1930, 1940, 1950, and so on through 2010, the 10 largest companies at the start of the decade have made up, on average, 23.6% of the U.S. stock market. But, in the decade that followed, the average annual return of those 10 largest companies has trailed the market by an annualized 1.51% on average.
They might very well continue to outperform (this time might be different, who knows), thatās how they got there in the first place but historically they didnāt.
Also hold and like Realty income, also store capital could be interesting
Personally, the only thing I would advise you is to continue learning and to never blindly follow random internet people (like me) without doing your own research.
If you want suggestions it might help to say what kind of companies youāre looking for and in which sectors or what particular companies you have doubts about, there are enough friendly people here who are willing to help you
Iām impressed as you seem to know what you doing,well then it my give u an idea if I tell u that Iām lookin on a short term and in the meantime to study n gain experience in order to swap to long term investments gradually.Iām the kind of person that Iām learning by practicing rather than just listen and reading
Stock exchanges and -services
I created a pie which gives exposure to stock exchanges, stock exchange services, market makers and brokers. These companies make it possible for us to buy and sell stocks, ETPs among other things. www.trading212.com/pies/l7aghYnR7zBChWSiZ7dhuzHW4LHJ
The pie is currently market-cap-weighted but I might change that later to reduce exposure to LSE, CME and ICE.
Whenever CBOE and TW become fractional Iāll add them, also am looking at adding more brokers to add to the pie like FlatexDegiro for example (which currently isnāt available on T212)
Thanks for this, it will give me some food for thought. Iāve been keen to add something in this sector for a while as Iām light on financial-type stocks after offloading AIA and HDFC. MKTX might be the one but Iām yet to do any real in-depth research. Another that Iāve been eyeing up for a while is B3 in Brazil. The OTC listingās not penny stock exempt though
Is Six Swiss Exchange available?
I realised that it is not in your pie.
I donāt seem to be able to find it on T212 though, but then I get all the Swiss stocks when I try searching it so it might just be hidden amongst all the others.
According to Wikipedia:
SIX Swiss Exchange is completely owned by SIX Group, an unlisted public limited company itself
SIX is owned by around 130 national and international financial institutions, which are also the main users of its services. The company is not listed on the stock exchange.
So I donāt think itās available sadly