The enemy of the best is often the good.
I have these ETFs in my portfolio:
Some, if not all, have outperformed the MSCI World at times.
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At the moment they are all about the same weighting and should be increased further. While I am trying to implement a growth strategy with equities, these ETFs are intended to generate passive income.
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Objectively speaking, I would have to sell the $FUSD (-4.97%) as it further increases the US share and overlaps heavily with at least two of the other ETFs. In other words, it reduces diversification in all respects.
But on the other hand $FUSD (-4.97%) also the one with the best past return and will probably remain so in the future.
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One approach could be to take the US weighting and overlaps into account in the ETF weighting of the portfolio and implement it as follows, for example:
$TDIV (-4.93%) 40%
$GGRP (-5.6%) 30%
$FGEQ (-5.26%) 15%
$FUSD (-4.97%) 15%
If the ETFs were weighted in this way, the following allocations would result:
Countries/Regions:
USA 56.4%
Canada 4.4%
Europe 33.2%
Asia 5.4%
Top 10 weighting:
$VZ (-4.51%) 2,3%
$CVX (-8.09%) 2,1%
$ROG (-5.6%) 2%
$NVDA (-7.25%) 1,9%
$PFE (-4.59%) 1,7%
$HSBA (-7.02%) 1,6%
$IBM (-5.4%) 1,4%
$AVGO (-5.25%) 1,4%
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What do you think of this allocation example? Do you have any suggestions for improvement or comments?
