Index Portfolio Review

Throughout the years, many of my blogs were focused on equities investment and the dividends that I receive from them. So, I will skip the review on the equities (which achieved my aim of 5% dividend yield) and start with a review on index portfolio as we countdown in this last week to the new year.

I have managed to grow my index portfolio (ETFs & Unit Trust) by 3 times in absolute value over the last 2 years into a sizeable one that is starting to make an impact. Most of the growth was inorganic as I utilise platforms like POSB Invest, with Maybank/Phillips Securities and most recently MoneyOwl to make sure I am always disciplined and invest almost the same amount of money monthly. It may be useful to know that these platforms charge me a lower transaction than if I buy them of the market myself.

I am determined to grow it further as long as I have active income.

person rock climbing
Photo by Анна Рыжкова on Pexels.com

Within the index portfolio, I try to maintain a constant ratio of 35% : 40% : 5% : 20% for Bonds : Equities : Gold : Reits. I also tried to maintain a SG to International Exposure of 55% to 45% across the various ETFs/Unit Trusts.

As of today, the Bonds : Equities : Gold : Reits ratio is 34% : 42.5% : 5% : 18.5%. This was a change from end 2018 when the same ratio was 27% : 46% : 6% : 21%. Over the course of one year, I managed to bring the ratio closer to my target. In Jan, I may want to make a once off adjustment to purchase more Bonds and Reits higher and thus reduce proportion of Equities.

In case you are wondering, most of the ETFs that I bought are listed in SGX, a few (China/Hong Kong related ETF) from Hong Kong Stock Exchange and a few thematic ones like Technology related from New York Stock Exchange. I also bought thematic/geographically related unit trusts to gain exposure into specific areas and market that I know.

I am happy with the diversification that this index portfolio provides. Furthermore, it also provides me a decent dividend rate of 2.7%.

Most importantly, this index portfolio forces me to have discipline in the way that I invest and make sure that I don’t buy and sell.

You may want to give it a try if you haven’t …

If you need more info about my index portfolio and its composition, let me know. I am happy to share.

Regards

Warriortan

8 thoughts on “Index Portfolio Review

  1. “In case you are wondering, most of the ETFs that I bought are listed in SGX, a few (China/Hong Kong related ETF) from Hong Kong Stock Exchange and a few thematic ones like Technology related from New York Stock Exchange.
    …..
    If you need more info about my index portfolio and its composition, let me know. I am happy to share.”

    Will be interesting if you can share your index portfolio, it’s composition and the channel of purchase.

    Happy holidays

    Liked by 1 person

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