3J·

Work in progress

Hi all guys!!!

I would like to share with you my ideal portfolio allocation, as read from the title it is still a work in progress, I am slowly adding positions as opportunities arise.

A little context: I am 24 years old, a final year medical student, and I am slowly putting money aside that I can invest both through my part time job (preparing for the medical test and tutoring for first year exams) and through the savings I already had set aside. The platform I currently use to invest is Directa.

Let's say that my goal at the moment is to reach over the years an invested amount of 50k euros in ETFs and distribution stocks, ideally distributed as follows:

CORE

-30k in growth-oriented developed markets etf (10k/30k)

Those selected are. $FGEQ (+0,09 %) (10k/10k) , $TDIV (-0,04 %) (0k/10k) and $HMWO (+0 %) (0k/10k), so as to have income every month, as they distribute alternately;

SATELLITE

-5k in emerging markets etf (0k/5k)

I chose $IEEM (-0,23 %) to diversify;

-5k in high-distribution etf (2.5k/5k)

In this category I own. $VHYL (-0,16 %) ;

-5k in active option-based etf (5k/5k)

Here I have already completed my position in $JEGP (-0,01 %) , which by the way distributes monthly ;

-5k in single Italian stocks (0k/5k)

In this category I have already selected some of the possible additions, such as. $PST (+0,85 %) , $ISP (+0,59 %) e $TRN (+0,81 %) , but at the moment the prices are too high and I am not willing to buy now;

Considerations and Strategy Explanation: I start by saying that I know that at my age it would be better to buy accumulation instruments for the best taxation and growth over time, but personally the idea of receiving a monthly cash flow (albeit still small) without having to do anything at all has an important psychological impact, and seeing it grow slowly gives me a lot of satisfaction and motivates me to continue on this path. I started immediately by positioning myself on high-dividend etfs such as $JEGP (-0,01 %) e $VHYL (-0,16 %) so that I already had a small boost in the strategy; I hoarded $FGEQ (+0,09 %) during the first week of April by taking advantage of the flash crash that took place, and now I am accumulating liquidity in anticipation of another possible reversal: ideally the next move will be to start accumulating shares of $TDIV (-0,04 %) to diversify in currency as well: last note, the etfs chosen are also from different issuers so as to diversify in this aspect as well.

Let me know what you think!

2 Commentaires

Having a good strategy that fits your goals is awesome. Acc might be better long term as you already said but nothing wrong with dis etfs if you want that Cashflow :)

Why you wanna put 5k in a Single italian Stock? Only because you are from italy? Or because you think that these companies are good ones? If you only want to invest cause you are from Italy i would ovething that. That's a home bias and most likely not good long term.

You are saying your aim is to invest in growth oriented etfs and you are also saying you have some money set aside that you wanna invest slowly. If your focus is on growth, why not invest everything that's possible right now? Time in the market beets timing the market. Especially when you focus is growth.

The job of a Core is to build the majority of your portfolio and be the backbone of it. If the 3 stocks you mentioned are supposed to be your core then your main goal should be to build them up first and asap. Why are you already buying the satellites if you do not have a core yet? That means your satellites are your core right now and you are not following the strategy you are mentioning here.

You do not really get an advantage by buying high divident etfs up front. If you have a strategy that's awesome but than stick to it and do not act differently. If you have a strategy but you are not following it it's useless to have one :)

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Frasgaa@Frasgaa

@Snopy First of all, thanks for the comment!

About the italian stocks, I know that this seems like a home bias, but in reality there are few reasons that made me think these stocks are a good idea: buying dividend stocks from other countries significantly reduces the income from dividends because of the double taxation they have in their home country and in Italy too, while buying italian stocks allows me to pay a single taxation (26%); furthermore, these are the stocks I know the best and a rule that I use is to not invest in something I don’t know: while ETFs permit a wide diversification, buying single stocks is way riskier so I have to choose them wisely; lastly, I think that the ones I mentioned are really solid companies, with good fundamentals and dividend growth history, nice payout ratio and are also a way to diversify more, because in the three core ETFs I chose italian companies are only marginally represented!

Regarding the money set aside, I think that there is an error in traslation from the app haha (I wrote this post in italian) because the money I have already invested came from money I had set aside during the years, and right now I only have 2k cash waiting to be invested in TDIV, because I think that the events that are happening in these days can have repercussions in the stock market and I’m waiting for a better price in the short term :)

In terms of core and satellite strategy I think you are right, I maxed my FGEQ position as soon as possible , and even if I have already started buying satellite assets before completing the core, I did it because at the time they had a better price than core ETFs: my goal is now focus on TDIV and HMWD!

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