Hi Everyone,
I am looking for suggestions and inspiration to diversify my portfolio, that right now is:
Very open to hearing all different approaches and strategies.
Have plenty of cash to open new/balance positions.
Thanks a lot
So looking at your portfolio, following is summary
Your portfolio seems quite diversified to me. The decision of how much should be in Fixed income , Equity and Cash is individual and depends on your goals as well as tolerance to volatility. For some 50% equity is a lot and for some 65% is too little.
Your post is titled -: Diversify portfolio. What is your reason for considering a change?
Regarding regional over-weights
Do you have any reason to have overweight for certain countries? If yes, it’s good. However you should be willing to accept the consequences (positive or negative) of doing so. Nothing wrong in being overweight but it is more like being active and hence might or might not work.Ideally, your reasons should NOT be returns from previous periods.
I am also overweight IN and CH. But that’s because of home bias.
Thank you both.
Overweight on CH is home bias.
LA and IN overweight is to focus on specific emerging economies.
I would like to diversify to reduce exposure on stocks and increase on fixed income.
This because I expect an increase of income (including stock options).
I have good risk capacity, won’t need to withdraw much in next 10-15 years - let’s estimate 10%.
As well good risk tolerance, I can manage -20% for some years.
Thanks again, appreciate also the question that makes me reflect
Lots of resources in the wiki article
It’s most likely going to be in currency different than CHF. Like for a real estate investment.
I could not find an equivalent of IBGL in CHF, that’s the reason for going for it.
Exactly. If the drop is more than 20% and sudden, won’t be that comfortable. So not a super risk taker here
My 2cents to the regional approach: I like the indian focus, will add that on my portfolio as well. For the LATAM focus though, do you have any reason for this? LATAM is very dependent on commodities, but not even on these they are global leaders. Also the mindset is different than Asia, not as business focused (sorry for the generalization). Historically, industrial countries and APAC countries have always outperformed LATAM. It’s a shame (I have personal relations with LATAM) as the region does have everything to succeed but could never take advantage from these privileges.
Rationale behind Latin America:
Overall it’s a fast developing market. Middle class is struggling, while top 1% is striving. So businesses with high margins are doing well
Any suggestion on bond ETF? Or high dividend ETF?
The question is why you want to diversify:
Why do you want to diversify? And what do you want to achieve?
The India ETF is a good idea I think as the country from an economic and geopolitical point of view was very well positioned. But at the same time, remember Global Warming and what it means for India. Chances thag the Indian Economy and Stock Market innthe next 100 years goes to Zero are big. If they however survive that, India may in 100 years be what Switzerland is now… so thats a high risk / high reward play.
There is Zero correlation among economic growth and share development. Point in case: China.
Thanks for your viewpoints. Do not see this as an attempt to question your equity focus but rather a discussion on LATAM economics (if preferred I could also add another thread).
Mercadolibre is actually a very interesting company, which totally supports your focus. However, beside the pure share performance I see the big problem in the limits of distribution. The delivery/postal services are not established and severely limits the costumer base. E.g in the 3rd largest bolivian city you can not order at mercadolibre because of not existing delivery options.
For the commodities, I had high hopes for the lithium rush. But in Bolivia this business is sold to China. In Chile it’s very concentrated in SQM. In Argentina no company wants to start business because they would be state owned as soon as they would be profitable (ok maybe with Milei now it’s different but that will not be for long).
Furthermore, there are several new lithium projects in the US, EU (Serbia as just announced), Australia and China.
My personal solution is to have the world covered with VT and adding some satellite companies that covers also the parts of LATAM that I think have some future like SQM (overall slightly on the positive site but just staying in VT would have been way better financially).
One of the problems that I see is the middle class that you mentioned as well. You need this middle class to generate volume for companies like MELI, they can not grow sufficient with only the top 1%.
Very good reflections!
Agree, infrastructure it is still a huge gap across the continent. Huge issue for any business, for MercadoLibre most likely the biggest constraint to faster development after cross-borders regulation.
For commodities, it is really unpredictable how it evolve. Lithium and copper will be needed for EV - that will be also produced in LATAM.
China presence is also strengthening in many sectors.
Overall it’s a long term game over there.
Very different dynamics vs India or the tiger club economies in south east asia.
I stay positive - but agree that overall would have been more profitable to invest in VT and few satellite high potential stocks.
But that’s why we are here discussing ways to diversify:)
Thanks!
Most likely EUR for the real estate.
And yes please, any advice on which bond other than IBGL is very welcome.
I was looking at EM1015 as well for medium term EU bonds
There is a thread about Fixed income instruments . They are from Swiss investor perspective. But you can always buy something similar from EUR if needed
One example for corporate bonds in Euro is following IEAC. Different versions are available i.e Eur distributing and accumulating, CHF hedged etc. Average duration of 4.5 years
That list would make a perfect basis for a wiki article. I think a lot of people (myself included) ask themselves what to do (or not do) next after they’ve built an initial portfolio.
Should I start one?
What’s your primary objective?
Lots of really good input in this thread but the answer “depends”
If your primary objective was to be financially independent age 50 in 15+ years you can estimate your budget and therefore how much you need to invest to achieve the objective depending on how much volatility you are prepared to tolerate along the way
On the other hand if you primary objective is to buy a house in Eurozone in the next 5 years and financial independence is a secondary objective the answer is very different
Happy to start one if you wish, that may be a good idea.
probably needs some more polishing around the “why’s” of diversification, and then not just add the how but as well probably a link to the what. But thats something we can do over time. Guess the community will over time build up something nice here 
Here is a thread to consider, with a new article link just in time.
Yes, there’s still a lot to add, more detail about the why, links to hard data supporting these claimed benefits, examples of funds etc. But we need to start somewhere 
Financially independent in 15 years is the answer 