The ETF PortfolioOTHER PEOPLE’S PORTFOLIOS – THE LONG-TERM, LOW-RISK PORTFOLIO Today we continue to look at “Other People’s Portfolios”. For new members, we are developing a Portfolio Assessment business which will be targeted mostly at financial planners and financial advisers but will be offered to members at a price. Whilst we develop this service we are doing some portfolios for free and, with the permission of the Members involved, are anonymously publishing these portfolios in the newsletter as a fabulous insight for Members into what other investors (Members) are doing. We have already done The Stock Picker and The Monster Portfolio Today we have a very interesting portfolio from a long-time Marcus Today Member who runs two portfolios. One is a fairly conservative SMSF with about $1.7 million in it and the other is a growth portfolio with a little under $1 million in it. We have combined the two today. Here is the combined portfolio: Features of this portfolio include:
- 68% of the portfolio is in ETFs which have a (very) low level of risk at 1.77% - this is the size of the trading range this group of ETFs trades in from top to bottom each week on average over the last 14 weeks. An ASX 200 ETF, for instance, has a risk of about 1.85%. So 70% of this portfolio has a lower risk than the ASX 200 index.
- At a total portfolio risk of 2.27%, this Member has constructed a sleep at night portfolio which balances low-risk ETFs with some solid growth equities.
- 28% of the portfolio is invested in Australian equities and as you will see below, this Member has departed from the usual “Moron Portfolio” and picked what he considers to be the best stocks rather than the usual stocks. The interesting observation is that the stock-picking is not rocket science, it is pretty obvious stuff.
- The total yield on the portfolio is 2.71%. This is an example of a retiree relying on growth rather than income and making a good job of it.
- Most of the shares are in the growth portfolio and most of the ETF’s are in the SMSF.
- The tables split the shares from the ETFs and both sections are listed in order of the size of the holding.
- We do not take into account the trading history, so this is a “Snapshot” only - it is not a performance record for the total portfolio just for the shares held now.
Note to financial planners and Members If you can think of some way to improve this SNAPSHOT - something else you would like included, something that would add value to the assessment, please contact me - especially if you are a financial planner - imagine going into a meeting with a client to talk about their investments...what would you need or like to see in this report. Please EMAIL ME HERE
- This Snapshot contains facts not opinions
- If you find errors please tell us and we will re-issue the tables
- Tables mostly in market capitalisation order