Hi all,
Need some help on my portfolio. I've decided to go against VDHG due to lack of flexibility and am considering the following:
40% A200
40% VGS
10% NDQ
10% VGE
Ideally I'd like to overweight tech stocks in the NDQ and am conscious that this is lacking in small caps and does not consider currency risk via hedging. Is it worth even adding these?
Any thoughts appreciated.
Yes, don't forget to avoid it.
One thing that you might consider is the risk of smaller companies going bankrupt without assistance from central banks. The larger ones would be less risky and more likely to receive assistance due to the "too big to fail" theory. I'd avoid exposure to smaller companies and stick to something that you think can survive the global health and economic crisis.
Looks fine to me
FANG
FAANG
Looks good
consider currency risk via hedging
CSL, BHP, RIO is already a natural hedge. They get USD for the products, their cost is in local currency. You'll find most international companies are so diversified they are naturally hedged.
There is some funds you can buy that is hedged. If you are regularly invest you are dollar cost averaging which is also a kind of a hedge.
As for small caps. Look at the Australian small cap index. Returns are not much better than ASX200. Not worth the trouble.
Not the worst portfolio I've ever seen.
Personally I avoid VGE and VGS. You are unlikely to see all developed countries tanking or on a bull run at the same time, and likewise with emerging markets. What this means is that these ETFs often trend sideways and you are unable to get any benefit from rebalancing.
You are more likely to see a whole country tank or go on a bull run. So my suggestion would be:
replace VGS with something like IVV, F100 and IJP
replace VGE with IIND and IZZ.
But it's up to you. I'd also have gold and bonds in there, and I keep a lot of cash on the sidelines.
The stock market has shit its pants, good time to buy anything
….So your going to buy Virgin or Qantas Stocks i take it?
Most of mine are in etf's, they shit the bed too but will recover
Qan would be fine, I would put them in not only the "too big to fail", but also the "national airline that will be bailed out at all costs" category.
Why not pick stocks if you're gonna pick ETFs? (genuinely curious)
Easy diversification - reduces your risk if an industry goes bust etc
Personally and this is just me PERSONALLY about 30% of my Portfolio is VAS and another 30 is split between IOZ and AFI but thats me
If i had $$$ i'd buy F100 - but with my wife currently not working just dont have the extra $$ to invest
Seems alright IMO. If you want you could decrease A200 and increase NDQ to 20%. I personally have no idea where the Australian economy will be headed but I don't feel it's as strong as the US for capital growth.
NDQ has done very well through coronavirus, as someone who owns it already I'm considering putting more cash into it.
Yeah, I'm actually thinking of doing the same but do feel the Australian economy might get it's time to shine in the next couple years (or decades lol)
Why do you base that feeling on out of curiosity?
VGE has no exposure to South Korea. IEM is a better option.
Dont forget crypto exposure.