After the recent market downturn, we’re now at a level where I am feeling comfortable to go “all in” on equity at least with my monthly savings. So I adjusted my regular ETF savings plans, trying to commit to saving and investing as much as I can from my monthly take-home. This is what my allocation looks like:
33% IE00BK5BQT80 Vanguard FTSE All-World UCITS ETF (VWRA)
14% IE00BKM4H197 iShares MSCI Emerging Markets Consumer Growth (CEMG)
12% IE00BP3QZD73 iShares Edge MSCI World Size Factor (IWSZ)
08% LU0533033238 Lyxor MSCI World Health Care (HLTW)
06% IE00BYZK4883 iShares Digitalisation UCITS ETF (DGTL)
27% the remainder in a couple of Emerging Market single-country funds (roughly equal weights)
- VWRA is the IE equivalent to VT, but accumulating. This should be the backbone, as a highly diversified world fund. Curiously having been listed as zero taxable income on ICTAX for 2019.
- I like underweight sectors I dislike (banks, airlines, car manufacturing, oil) and like to overweight sectors I like, with CEMG, HLTW and DGTL
- CEMG contains a lot of stocks I like individually, for emerging market exposure, whereas many other EM funds and markets tend to overweight financials.
- The remaining 27% in individual EM country funds might be a bit high for my liking. If I’m able to save to save more I’d rather put it in the top 4 funds. Might lower this to something like 15 or 20% overall, if I get round to it.
- The numbers add up to approximately 44% emerging markets exposure. That’s a lot. But I will also gradually be reallocating my pillar 3a to 60-70% equity, where I will take a more conservative approach, not unlike some portfolios having recently been posted on the forums. My current 3a balance is equivalent to 6 years of monthly savings/investments at my current rate. Thus, my overall allocation is going to look much more “conservative” than above.