Portfolio balance for performance and diversification increase

Investing / Portfolios
1

Hi everyone,

First off, a big thank you to all of you for your valuable insights—I’ve learned a great deal just by reading through the discussions here.

Today, I’d like to ask for your feedback on my portfolio. I started investing about four/five years ago, and since then, I’ve been gradually expanding my positions while continuing to learn.

Here’s a snapshot of my current allocation:

  • Cash: 57.3%
  • 3rd Pillar (Frankly + Swiss Life Select): 14.9%
  • Crypto: 12.9%
  • Swiss Life Select: 11.1%. Composition:
    • UBS Vitainvest 75 World
    • PIC Precious Metal-Phys. Gold
    • FID Global Industrial Fund
  • Gold: 2.2%
  • IBKR (80% VT + 20% CHSPI): 1.6%

As you can see, I’m holding a significant amount of cash and a very low quantity of VT/CHSPI as I started quite recently. I have mixed feelings with the Swiss Life Select product even though it has a “good” performance. I wasn’t fully aware of the long-term impact of fees. It was one of the first “investment” decisions I’ve taken, with a lack of “DYOR”… I’m considering closing this account and reallocating those funds more efficiently (VT/CHSPI).

Investor profile:

  • Dynamic/Balanced risk appetite, with around 36 years before retirement
  • I appreciate liquidity and returns but understand the investment triangle
  • I’m comfortable with drawdowns, provided I understand what I’m investing in
  • My goal is to build a resilient, growth-oriented portfolio over a 5–10 year horizon
  • In an ideal scenario, I’d like to buy a flat in Switzerland within 3–5 years, potentially alongside a real estate investment in France. If I go through with the purchase, I’d still like to maintain a low amount of my current investments (IBKR, crypto, 3rd pillar), rather than liquidating and restarting my DCA from scratch. I realize this goal partially conflicts with my time horizon, and I’ve yet to run the full rent vs. buy analysis.

My main question:

What would you do with the cash portion of my portfolio to improve performance, diversification, and reduce volatility (except increasing VT shares)?

Specifically, I’m considering:

  1. Adding bonds (government or corporate) for stability and added diversification. Finding a good ETF is a bit tricky, do you have any valuable feedback to share?
  2. Adding another ETF that could balance the US exposure
  3. Private Equity exposure, via something like the IPRV ETF, or platforms like Swisspeers or Raizers. I’m aware that PE typically requires a high entry ticket (100k+ over 5 years), but if there are other routes you’ve tried, I’d love to hear about them!
  4. REITs (e.g. VNQ, iShares Developed REITs), or Swiss real estate funds like UBS Swiss Real Estate as I believe real estate is a strong lever for financial growth
  5. Invest in France real estate (Real Estate Investment Company with family members)

Next moves:

  • I’ll rebalance my VT/CHSPI allocation soon (target: 20% of portfolio), particularly in light of the first effects of the One Big Beautiful Bill Act. Depending on this law, I’ll probably switch to another world ETF
  • I plan to continue my DCA on gold until it reaches 5% of my portfolio for a very long term investment (+40 years). I might switch to the ZGLD ETF on IBKR for better liquidity and ease of management
  • I’ll also keep my DCA on my current assets (3rd pillars, crypto)

Thanks a lot in advance for your input—looking forward to hearing your thoughts and recommendations!

2

I would start with a target asset allocation and gradually trickle funds via DCA into the chosen buckets. Here are some thoughts for you.

My personal allocation may not fit your risk appetite, but it could be a starting point for further ideas. With 36 years of runway, I would be quite aggressive and invest in volatile assets. No need for bonds.

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  1. You didn’t mention any pension fund. I recommend to include this in your overall wealth and treat it as bonds (you probably get 1-2% interest per year, right?). Then take your bond thoughts from there.
  2. Having a longterm view could allow you to completely ignore whatever the current or next US president does. Reacting to the Big Beautiful Bill should not be a necessity. Longterm planning in the light of a shrinking USD dominance makes sense to me.
  3. For Private Equity, I am invested in company stock like HBM Health Invest or Partners Group. It could be an alternative way for you to participate in this asset class.
  4. Real Estate makes sense in a place where more and more people want the same limited resource. To me, the current prices are insane and I would only buy when I see clear benefits to renting or a business case with >5% return. IMHO, investing abroad complicates things.
  5. Crypto can be anything from BTC to utility coins to shitcoins to stablecoins. I believe in BTC but not in the others. Not sure what you own.
  6. I believe in precious metals: Gold, Silver, Platinum. They are the real money when Fiat is just currency. At age 59, inflation insurance/protection is important to me. At your age, maybe less so.

Good luck with planning!

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