6Mon·

The enemy of the best is often the good.


I have these ETFs in my portfolio:


$TDIV (+0.03%)

$GGRP (+0.08%)

$FUSD (+0.35%)

$FGEQ (-0.51%)


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 (+0.35%) 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 (+0.35%) 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 (+0.03%) 40%

$GGRP (+0.08%) 30%

$FGEQ (-0.51%) 15%

$FUSD (+0.35%) 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:

$MSFT (+0.87%) 3%

$AAPL (+0.1%) 3%

$VZ (-2.29%) 2,3%

$CVX (-0.15%) 2,1%

$ROG (-0.78%) 2%

$NVDA (+4.82%) 1,9%

$PFE (+1.24%) 1,7%

$HSBA (+1.06%) 1,6%

$IBM (+1.5%) 1,4%

$AVGO (+2.45%) 1,4%


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What do you think of this allocation example? Do you have any suggestions for improvement or comments?

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9 Comments

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$GGRP or $FGEQ. Liquidate the remainder and invest in the selected ETF.
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@Psychedelic_Sunflower why not both? i'm just about to buy the missing one of the two :D
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Your whole depot and your post scream out loud: "Hindsight Bias!"

Time for real diversification.
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@Epi what would you diversify and how?
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@Iwanowitsch I don't know your investor profile. But 50% $GGRP or $IUSA and 25% each $EWG2 $BTC offer the objectively best mix of security and return. Historically and systematically.

But most people here don't care about objectivity. It's the feeling! It's the feeling that counts! 😂
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Is Japan included in Asia? Then I would find the share too low.
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@Olli68 Yes, Japan accounts for 2.7% in this case. Why would you weight Japan higher?
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@Iwanowitsch Because Japan is one of the largest economies in the world, has a democratic political system and is still the safest place in Asia to invest.
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I would play around with backtests as much as possible. Curvo, for example, has optimization tools. The only problem is that some etfs do not allow such wide backtests.
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