I‘ve been thinking long and hard about the portfolio allocation that I would feel comfortable. Having played around with different portfolio allocation options, consisting about half a dozen ETFs, I‘ve currently gone back to „keeping it simple“ and allocate the biggest equity part to an All-world equity fund as sort of a starting point.
I would then make a few additions, to adjust for my personal preferences and convictions (for example overweighing Emerging Markets).
Vanguard All-World (VWRL) would be a good starting point, I thought.
However, its biggest sector exposure currently is Financials (at 21%) - something that I don‘t feel comfortable about at all. I‘m less concerned about „Financials“ like Berkshire Hathaway but rather about the banks.
Why? Historic underperformance, combined with higher volatility - and a political and monetary „climate“ that I don‘t think bodes well for the foreseeable future.
I‘m not sure now what would be the „best“ way to offset the exposure to Financals (and especially banks)?
Options, warrants? Short-selling ETFs or CFDs?
Do I understand correctly, that I can do this at Interactive Brokers?
Any opinions, tips, experiences?