Articles

What is your investment style?

My ETF Hedge Fund updates monthly two model portfolios: the conservative model portfolio and the aggressive model portfolio.

But what if your investment style you are comfortable with is in between?

Indeed, the conservative portfolio is always invested in fixed-income (including cash) for at least 50%. This may be too much for many investors over the long term. If so, you can use your portfolios to achieve your own mix. For example, an investor with moderate risk appetite may wish to allocate half of the portfolio according to the conservative model and the other half according to the aggressive model.

Doing so at the end of July would have meant holding the following porfolio for the month of August, for a return of 3.64% as of August 19:

Equity: 25% (5% net exposure)

- SH (10%). This is a short position in U.S. Equities
- IDX (5%)
- EWH (5%)
- EWJ (5%)

Commodities: 30%

- GLD (20%)
- DBB (10%)

Fixed-income: 45%
- cash: SHY (15%)
- TLT (15%)
- TIP (10%)
- AGG (5%)

You can adapt the share allocated to the two strategies (conservative and aggressive) at any point in time depending on several parameters:

  • the evolution of your risk appetite
  • the number of positions you wish to hold depending on the size of your portfolio

Want more? See the impact of mixing the Platinum and the Retirement portfolios.

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