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Fully Diversified ETF Portfolio
Investor2017
Posted: 20 November 2017 15:31:27(UTC)
#1

Joined: 18/11/2017(UTC)
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Hi Guys,

I'm 30 years old and am looking to start investing my money (around 50K) in a fully diversified ETF Portfolio and hold it & add to it for many years. I'm kind of new to investments but lately I read a lot on how to diversify such a portfolio by including;

Stocks ETFs (US, Non US & Emerging Markets), (mid-cap & small-cap)
Bonds ETFs ( US, Non US & Emerging Markets)
Property ETF
Commodities ETF
Gold ETF

Given the current global economic situation where all prices are high and some investors are talking about being cautious, bubbles and potential crises, I'm a bit worried to get in the market at this time and end up buying at the tip.

What do you think about this and which ETF from the above mentioned (or others) will you start buying at this moment.

I'm looking forward to read your recommendations & suggestions.
Hank Elvis Dobbs (texan)
Posted: 20 November 2017 18:42:03(UTC)
#2

Joined: 19/08/2017(UTC)
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Howdy...Don't
Tim D
Posted: 20 November 2017 18:58:54(UTC)
#3

Joined: 07/06/2017(UTC)
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Don't know if you're familiar with the Harry Browne "permanent portfolio", or the idea of "total market" (over *all* investable assets) investing? Couple of interesting threads touching on the topic here at https://moneyforums.city...-IT-Fund-Portfolio.aspx and http://moneyforums.cityw...st4470_ETF-of-ETFs.aspx .

I did actually start my own version of a Permanent Portfolio after that:
* 25% Global Stocks: VRXXB
* 25% Precious Metals: PHPP (not just gold; a basket with silver, platinum etc)
* 25% Long Govt Bonds: split 1/3 each VVUKLG, IBGL, IBTL
* 25% Short dated bonds: split 1/3 each ERNS, ERN1, ERNU
Plan is to double the allocation over the next 5 years, so rebalancing will probably be by modifying where top-ups go rather than selling anything, unless something really crashes/soars. I'm not going to judge it for at least 5 years. I'm in a vaguely bearish mood myself, at least with new investable cash which might have otherwise gone to PNL, CGT or RICA. You can be too cautious though; when I was your age I was 100% stocks and I'm glad I was despite 2001 and 2008 still to happen.

No property or more diverse commodities in there though, and while VRXXB does include a wide-range of market caps, the cap-weighting of the index means it's still dominated by the mega-caps. Depends whether you're just looking for exposure, or to actually overweight mid-caps and small-caps?

I do hold a lot more Vanguard Lifestrategy (global stocks and bonds), but recently switched to L&G's multi-index funds for some recent money (they have less US exposure than VLS, and does include some property).
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