Hello everyone,
I've taken another look at my portfolio. I currently have a mix of a solid All World (23%) foundation, a strong cash/gold reserve (28%) and some aggressive individual bets such as $IREN (-9.1%)
$HIMS (-8.07%) and $LMND (-3.87%) and $BTC (-1.45%) .
What I've been missing so far is the "strong midfield" - a component that is less risky than stock-picking but has more power than a standard European index.
My plan: I consistently shift profits from my individual stocks (as soon as they reach +100%) into the iShares MSCI Europe Momentum $IEFM (-0.12%) . Target weighting: 12 %.
Why exactly this ETF?
Instead of investing in the EuroStoxx 50 $CSSX5E (-0.25%) "old industrial dinosaurs", the momentum factor filters out the strongest players in Europe at the moment (e.g. $SIE (-0.9%)
$SAP (+0.64%)).
Regional diversification: My portfolio is very US and tech-heavy. With the momentum approach, I get the European elite on board, including Switzerland, the UK and Denmark (which are missing from the EuroStoxx!).
Automatic rebalancing: If trends shift (e.g. from pharma to defense or tech), the ETF adjusts every six months. I don't have to guess which sector will perform next.
The strategy: I use my "high-flyers" as a source. When stocks like $IREN (-9.1%) or $GOOGL (+0.9%) reach their targets, I withdraw the stake and park it in the momentum ETF. In this way, I reduce my individual stock risk, but remain offensive in terms of the potential return.
The only watchpoint: Since I $NOVO B (+0.66%) and $ASML (-0.53%) as individual stocks, I make sure that the total weighting of these stocks in the ETF does not become a lump (limit: max. 8% per stock).
What do you think of the move? Would it be better to invest broadly in the Stoxx 50 $CSSX5E (-0.25%) or 600 $EXSA (-0.07%) or does the momentum factor make more sense for a growth strategy? đ