The Latest Update to My ETF Portfolio

It has been a while since the last time I wrote a post… so I am back at it with the latest update to my ETF portfolio.

On the path to financial independence, I still believe Index Investing is a simple but effective strategy to build wealth.

If you are new to investing, you may read what is an ETF here. Today, most brokers offer a wide range of ETFs and some do not charge any transactions fees.

It is so easy to build a globally diversified portfolio that there is literally no excuse to not be well diversified.

Latest Portfolio Changes

Back in November, I wrote about how I moved to a more global portfolio instead of focussing solely on the US index.

My largest holding is still IWDA which tracks the MSCI World Index.

With the iShares Core MSCI World ETF, I gain in exposure to other developed markets as Europe, Japan and United Kingdom. This ETF still maintains a reasonable exposure to the US market though (65% of its holdings).

While maintaining my exposure to the Brazilian equity market, I’ve added to the mix an Emerging Markets ETF, so I am not exposed to Brazil only and fight a bit of country bias.

I have also added 2 other ETFs with the goal of gettting some exposure to fixed income, through treasury bonds and corporate bonds.

All my ETFs are part of the free offer of DEGIRO. The main advantage for consistent investors is that there are no transaction costs if we play their conditions (details here).

Are you considering investing in ETFs? Consider using DEGIRO. They offer more than 200 commission-free ETFs (conditions here), and are regulated in The Netherlands by the AFM and placed under the prudential supervision of the DNB.

Holdings Update

My new ETF portfolio contains now 6 ETFs:

  • iShares Core MSCI World UCITS ETF USD (Ticker: IWDA)
  • iShares MSCI Brazil UCITS ETF USD (Ticker: IBZL)
  • iShares Core MSCI Europe UCITS ETF EUR (Ticker: IMEU)
  • iShares MSCI EM UCITS ETF USD (Ticker: IEMM)
  • iShares $ Corp Bond UCITS ETF (Ticker: LQDA)
  • Vanguard USD Treasury Bond UCITS ETF EUR (Ticker: VUTY)

Below my current allocation to each one:

ETF Portfolio Holdings

My personal bet on Emerging Markets is mainly based on a weaker dollar going forward.

There is also a valid correlation between a weaker dollar and emerging markets annual returns.

Ben Carlson, from the blog awealthofcommonsense, has an interesting post about which investments benefit from a weaker dollar. Read the full piece here.

The same correlation is valid for Gold. The issue was that I did not like the price action following my purchase.

Looking at it now, the technicals seem way more bullish and I may add it back to the portfolio.

Thank you for reading and let me know of your ETF holdings in the comments section. Happy investing!