Portfolio Split

This is how my portfolio is set up right now.
All ETF based as I don't really have time to be messing with the level of due diligence I'd like before picking individual holdings and I don't have to run ETF's through compliance at work like I would with individual holdings.

The asset allocation is first based on a bond/equity split and then I make country decisions.
After which I look at the risk and return characteristics and build out efficient weightings for each component.

At the moment I've it set up that my expected return per year is a little under that of the S&P 500 but about with half the risk at portfolio level.
Granted this allocation is based on historical data and who knows what can happen really but it should stay pretty close I'd imagine.

Tim4 wrote: »

Interesting, that's a high allocation to bonds, imagine most here would have much lower than yourself.

Can't imagine why anyone would not have owned bonds over the last two years or so the way the FED and ECB are driving the value of them up.
Coupling that with the diversification benefits I'm very happy with them.

Look at the US yield curve now and compare it to last year and two years ago.
made it an easy decision; currently thinking about cycling out the investment grade for HY debt.

Plus I bought into many of them as spreads were starting to retreat after the explosion in march which compounded the QE based return.

I will note this is all corporate debt rather than government debt.

neris wrote: »

Think alot of people see bonds as poor returns and a thing that banks and pension funds buy for steady income

Obviously in the government bond section thats very true and at the upper ends of the credit spectrum. But it'd be very unwise to throw the diversification benefits of it away. That and the oppertunities at some of the marginal areas where the lines between investment grade and sub investment grade become blurred.

I'll admit my allocation is the highest its ever been but thats been with good reason. As spreads have receeded investment grade isn't as lucrative as it was last year but I think I'll cycle a fair share of it into HY rather than all back to equity.

I'll update at some point, but this was what I was in at the turn of the year

Shedite27 wrote: »

What a mental year, portfolio is up 61% for the year. My annual bonus in work gets paid in March, which coincided with the crash this year. It was nervy adding them to stocks but the shares I bought around Paddy's Day are up crazy numbers for 9 months, Trade Desk, Pinterest and Peloton all up nearly 4x.

Here's where my money is as we turn the year.



Onto 2021

I have sold ServiceNow, Veeva, Invitae, Okta and CloverHealth (IPOC) so far this year for some new ideas