Today I said goodbye to $SMH (-7.17%) today. Despite the volatility, the entry in April was worthwhile and brought a nice profit of +40%, and that with an ETF! It wasn't a long-time play anyway, as it was a sector ETF.

Part of it went into the $QDEV (-2.77%) together with my DCA, and later I will also get $TDIV (-1.89%) get another share.

This means that companies such as $AMD (-10.01%) , $MU (-6.96%) , $INTC (-5.15%) and others are completely out of my portfolio, 0% exposure.

My US share is now <60% and tech at 38%. The top 10 stocks make up less than 30% of the total weighting. This makes me almost as unconcentrated as the $IWDA (-3.61%) and better diversified than the $CSPX (-3.86%) .

New portfolio key figures:

P/E 30.0 (<30) 🟡

Forward P/E 21.6 (<25) 🟢

P/Β 13.0 (<5) 🔴

D/E 0.8 (<2) 🟢

EV/FCF 28 (<25) 🟡

ROE (5-Jahres-Durchschnitt) 50% (>15%) 🟢

EPS growth for the next 5 years 23% (>7%) 🟢

Sales growth (5-year average) 15% (>5%) 🟢

With this high ROE, I am also ok with a high P/E.

Top 10 positions now:

Alphabet $GOOG (-3.33%)

NVIDIA $NVDA (-6.14%)

Broadcom $AVGO (-7.17%)

Microsoft $MSFT (-3.3%)

Meta $META (-5.02%)

Apple $AAPL (-4.63%)

Roche $ROG (-0.98%)

Taiwan Semiconductor $TSM (-6.55%)

Mastercard $MA (-2.02%)

Visa $V (-2.33%)

Today I reduced my semi-ETF by 20% to bring the weighting from 15% to 10%.

No single position has a total weighting (ETF+single stock) above 5%, which is also my threshold. I always want to stay below 5% exposure.

My forward P/E of the portfolio has also fallen to 23, which is below my target of <25, despite the high tech allocation.

This means that my tech sector weighting is now in line with my world ETF $QDEV (-2.77%)which contains around 40-49% tech. I'm happy with that. I'm just still tech-bullish.

I have also reduced the USA region to 63%, almost identical to my world ETF (61%), and thus within my target range of 60-69%.

My favorites in the semi area remain anyway $TSM (-6.55%) and $HY9H (-4.16%) which I bought cheaply and undervalued as individual positions.

$NVDA (-6.14%) is and remains king, but I do not believe that the annual return will remain above 10% in the next few years, for this the market cap would have to grow by 400 billion every year, which I think would be difficult. $AVGO (-7.17%) currently has a P/E 5x greater than forward P/E, which shows that analysts are extremely bullish on future earnings. I am also bullish, but not as strongly, so the stock has already run very hot.

My top 10 holdings with 32% total weighting are currently:

4.95% $TSM (-6.55%) Taiwan Semi

4.65% $NVDA (-6.14%) NVIDIA

4.55% $GOOG (-3.33%) Google

4.47% $AVGO (-7.17%) Broadcom

2.85% $MSFT (-3.3%) Microsoft

2.63% $META (-5.02%) Meta

2.37% $AAPL (-4.63%) Apple

2.04% $ASML (-5.06%) Asml

1.95% $MA (-2.02%) Mastercard

1.91% $JPM (-2.22%) JPMorgan

I took a few interesting screenshots comparing $QDEV (-2.77%) with other popular indexes $IWDA (-3.61%) , $CSPX (-3.86%) , $FGEQ (-2.87%) and $VWRL (-2.71%)

It is about the annualized 10-year total return (price + dividends)

World Quality Aristocrats: ≈15%

MSCI World: ≈11%

S&P500: ≈13%

FTSE All-World: ≈10%

Fidelity: ≈11%

Why buy the entire world ETF when you can just pick the 100 best quality companies that outperform the MSCI World and S&P500? The same applies to the top 100 stocks from the S&P 500 -> $QUS5 (-2.59%)

Very interesting article on the topic of quality shares by $SPGI (-1.05%) Exploring the Principles of Consistency and Efficiency in Free Cash Flow Metrics

https://www.spglobal.com/spdji/en/documents/education/education-the-sp-quality-fcf-aristocrats-indices.pdf

I myself invest in the two indices launched by SPDR via DCA.

$QDEV (-2.77%) and $QUS5 (-2.59%)

After much deliberation and a lot of tax calculations, I have decided to sell my long-standing Nasdaq ETF $CSNDX (-4.72%) to sell. The P/E of ~40 was just too hot for me and the ever increasing weighting of bubble-like stocks like $PLTR (-7.09%) and $MSTR (-7.17%) (and a few others that don't excite me at all) really got on my nerves. In my X-Ray Holdings analysis, I saw how they kept creeping up - that was enough for me. What's more, my US and tech allocation has continued to grow in recent years. Not dramatically, but more than I would like.

So I completely liquidated the Nasdaq and reallocated the money: 75% into an S&P 500 Quality Aristocrats ETF $QUS5 (-2.59%) and 25 % into an S&P Global Quality Aristocrats ETF $QDEV (-2.77%) . I want to invest in companies that really make money and not just sell fantasies. The two ETFs are still fairly new and currently have little volume and AUM (I am aware of the risk). But they fit my strategy perfectly: only companies with at least 10 years of positive free cash flow (FCF), high FCF margin and strong ROIC. Exactly my thing! 🎯

Sure, the ETFs might take a while to get bigger, but I'm all about long-term quality and stable cash flows - no hype, no gambling! 🚀📈