The enemy of the best is often the good.
I have these ETFs in my portfolio:
Some, if not all, have outperformed the MSCI World at times.
------------------------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------------------------
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.
---------------------------------------------------------------------------------------------------
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:
$VZ (-1,53%) 2,3%
$CVX (+0,31%) 2,1%
$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%
------------------------------------------------------------------------------------------------------
What do you think of this allocation example? Do you have any suggestions for improvement or comments?