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 (+2,38Â %)
$HIMS (-2,87Â %) and $LMND (+0,97Â %) and $BTC (+0,16Â %) .
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 +200%) into the iShares MSCI Europe Momentum $IEFM (-0,3Â %) . Target weighting: 12 %.
Why exactly this ETF?
Instead of investing in the EuroStoxx 50 $CSSX5E (-0,39Â %) "old industrial dinosaurs", the momentum factor filters out the strongest players in Europe at the moment (e.g. $SIE (-0,9Â %)
$SAP (+0,93Â %)).
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 (+2,38Â %) or $GOOGL (+0,18Â %) 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 (+1,36Â %) and $ASML (-2,43Â %) 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 (-0,39Â %) or 600 $EXSA (+0,08Â %) or does the momentum factor make more sense for a growth strategy? đ