Rate my ETF Portfolio

[stephen2987]

Risk tolerance: Medium

Time horizon: 5Y

• iShares Core MSCI World UCITS: 55% - Global Markets (Ter 0.20%)
• iShares Core Global Aggregate Bond UCITS: 15% - Bonds (Ter 0.10%)
• Invesco Global Blockchain UCITS A: 10% - Blockchain/Crypto (Ter 0.65%)
• iShares Global Clean ENERGY: 5% - Clean Energy (Ter 0.65%)
• L&G Ecommerce Logistics UCITS: 5% - eCommerce (Ter 0.50%)
• VanEck Vectors™ Video Gaming and eSports UCITS ETF: 5% - Esports (Ter 0.55%)
• HANetf The Med. Cannabis and Well. UCITS ETF Acc: 5% - Weed (Ter 0.80%)

Thanks!

 

[hugh999]

@stephen2987 Risk tolerance - Medium?
I wonder what high looks like In your World

I don't like the sector tilts and crypto is yeah, probably too much...
At least choose one or max two, seems like too many things that are fashionable right now (=overvalued).
Also the bonds are way too low to serve their purpose with those other volatile assets, might as well not have any bonds.

 

[markatki]

@hugh999 Agreed on all points, but I think that clarifications are needed from OP regarding the time horizon (per my other comment).

 

[stephen2987]

@hugh999 What would you switch?
I was thinking about lowering crypto to 5%, weed to 2.5%, and esports to 2.5%, while increasing global markets to 60% and bonds to 20%

 

[hugh999]

@stephen2987 I would probably remove the bonds, get one sector and the crypto to 5% each
Oh and get an EM fund.

 

[innas]

@hugh999

I wonder what high looks like In your World

100% across a couple of stocks? 100% in a particular crypto currency?

 

[hugh999]

@innas That's not high, it's insane

 

[markatki]

@stephen2987 What does the 5-year time horizon mean? Do you withdraw everything then? Do you begin withdrawing slowly? If it's the former, I definitely think you're way over-allocated in equities. If it's the latter, maybe that's okay, but refer to /@hugh999's comment.

I think you should run some Monte Carlo simulations on Portfolio Visualizer.

 

[stephen2987]

@markatki I will !
Thanks for the super helpful input!

 

[stephen2987]

Thanks for all responses

My strategy would be to:
- invest 50K now
- invest 5K more per year
- double my initial investment (excluding the 5K per year) by year 5

 

[xlaurax]

@stephen2987 To double your money in 5 years you would need an average of 14-15% return per year, which is very unlikely

 

[stephen2987]

@xlaurax This is why the portfolio is allocated like this.
Last year the return of the portfolio would have been 30.6%
But of course I know past returns do not translate into future ones!

 

[backnforth]

@stephen2987 I like it! I would change few things (personal opinion):

• instead of global bond etf i would pick a random high yield etf or EM bond etf
• instead of gaming etf i would go for a tech focused etf (either AI or Cloud etc...)
• i would consider health care related etf (genomics or tech related) instead of med cannabis

 

[hugh999]

@backnforth This comment perfectly illustrates the sector tilts flaws. I like apples, you like oranges. Nobody can say which will perform better.

 

[resjudicata]

@hugh999 This recent influx of these people is destroying what was once a reasonable sub with meaningless noise and up votes to moronic advice. I don't know if it is GME or what, but it is frustrating.

 

[markatki]

@backnforth Do you understand the risk implications of going from sovereign bonds to junk bonds?

 

[backnforth]

@markatki Yes. 15% of your portfolio in high yield corporate or EM bonds(as of today approx. 5% annual yield) , with 5y time horizon, it seems fair to me.

Specially taking into account the fact "risk" was defined as "medium" with about 30% of exposure in high risk not diversified equity ETFs.

Again, just a personal opinion.

 

[iza]

@stephen2987 The portfolio value is missing.

Buying more positions >> paying more commissions. It should tradeoff with returns. If your amount is relatively small than such split could be not efficient.

 

[innas]

@stephen2987 There's an esports ETF? I wonder what are the companies there...

EDIT: I see they have nvidia and amd there. And videogame companies. But didn't see any actual esports companies like teams or tornament organizers.