Jan. 29, 2020
Over the last few years I have been slowly increasing my ETF portion of my portfolio from 50% with the ultimately goal of getting it to around 65%. This is going to take some 5 years and the logic is to reduce risk (risk that I buy dogs) and make my life easier.
So far this is on track but also has impacts in other parts of my portfolio as the current split is 30% in 'til death do us part long-term stocks. Then 10% in second tier small and mid caps and the final 10% for trading.
So what gives if I squeeze my ETF holding to 65%.
The easy answer is that each of the other three drops their weighting by 5%. The hit on the long-term is fairly modest but very pronounced on the second tier and trading portions of the overall portfolio as they drop from 10% to 5%.
The second tier I will cheat and buy some ASHMID ETFs that tracks the local midcap and this will be part of my 65% into ETFs. So easy solution.
Till death do us part will get a large pile of cash as my Metrofile* (JSE code: MFL) get bought out at 330c later this year. This is currently my largest holding after I was a large buyer between Christmas and New Year as some seller got aggressive in the market knocking the price down to 265c (my lowest purchase was 272c). Most of this cash will go into ETFs when it arrives (likely around mid year) and this will boost my ETF holding to over 60% and easily on track for the 65% target.
Then the biggie is my trading portfolio, essentially I'll be halving it's size so either I trade smaller size or I remove one of the two strategies.
Current trading strategies are;
My plan here is to discontinue the lazy ETF trading. It's a small percentage of my overall portfolio and it will then free my ALSI trading to carry on carrying on.
The question then is what of the weekly lazy update I send every Sunday. In short it will expire in time, but send me thoughts.
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