11Mês·

The enemy of the best is often the good.


I have these ETFs in my portfolio:


$TDIV (-0,76%)

$GGRP (-0,72%)

$FUSD (-1,02%)

$FGEQ (-0,94%)


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 (-1,02%) 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 (-1,02%) 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 (-0,76%) 40%

$GGRP (-0,72%) 30%

$FGEQ (-0,94%) 15%

$FUSD (-1,02%) 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 (-1,14%) 3%

$AAPL (+0,22%) 3%

$VZ (-1,53%) 2,3%

$CVX (+0,31%) 2,1%

$ROG (-1,13%) 2%

$NVDA (-2,16%) 1,9%

$PFE (-1,23%) 1,7%

$HSBA (-1,1%) 1,6%

$IBM (-1,19%) 1,4%

$AVGO (-1,89%) 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 Comentários

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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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11Mês
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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11Mês
@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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