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 (-7,38%)
$HIMS (-2,91%) and $LMND (-4,78%) and $BTC (-1,32%) .
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 (-1,13%) . Target weighting: 12 %.
Why exactly this ETF?
Instead of investing in the EuroStoxx 50 $CSSX5E (-0,89%) "old industrial dinosaurs", the momentum factor filters out the strongest players in Europe at the moment (e.g. $SIE (-0,69%)
$SAP (-0,57%)).
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 (-7,38%) or $GOOGL (-1,77%) 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 (-2,25%) and $ASML (-3,7%) 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 (-0,89%) or 600 $EXSA (-0,83%) or does the momentum factor make more sense for a growth strategy? đ