A portfolio of 5 or 6 ETF's for turbulent times

Hi Michael,

That’s a very diversified portfolio for sure. In terms of typical assets, there’s really nothing missing there without making things unnecessarily complex (like adding property, infrastructure etc).

I’m wondering if you’re deliberately ‘under-weighting’ US shares for personal reasons. Having just 20% seems kinda lower than expected when non-US and emerging is 25%. In realitiy, US is far bigger than non-US.

If you wanted an allocation for your non-Aussie portion of shares more aligned with global market cap, it may look like 25% US, 12-13% ex US, 7-8% emerging. But I get that’s now not as clean as the round numbers lol so it’s not ideal.

But I can see it’s tricky to balance all those assets and come up with nice percentages for each. I’d say you’ve honestly done a good job of thoughtfully balancing all of it. All the best.

Hello!

It’s great to see that you’re thinking about diversification and resilience in your investment strategy. Your current allocation shows a thoughtful approach to balancing different asset classes and geographical exposures. Here are some ideas and ETF recommendations that could align with your goals of simplicity, diversity, and protection:

1. AU Shares (25%):

   • ETFs to Consider: Vanguard Australian Shares Index ETF (VAS) or iShares Core S&P/ASX 200 ETF (IOZ). These ETFs provide broad exposure to the Australian market, which, despite being a small portion of the global market, can offer significant opportunities in sectors like mining and financials.
     

2. US Only Shares (20%):

   • ETFs to Consider: Vanguard S&P 500 ETF (VOO) or iShares Core S&P 500 ETF (IVV). These ETFs track the S&P 500 and offer exposure to large-cap U.S. companies, encompassing a substantial portion of the American market.
     

3. Rest of World ex US (15%):

   • ETFs to Consider: Vanguard FTSE All-World ex-US ETF (VEU) or iShares MSCI ACWI ex U.S. ETF (ACWX). These provide exposure to a broad range of countries outside the U.S., including developed and some emerging markets, aligning well with your goal for geographic diversification.
     

4. Emerging Markets (10%):

   • ETFs to Consider: Vanguard Emerging Markets Stock Index Fund (VWO) or iShares MSCI Emerging Markets ETF (EEM). Emerging markets can offer growth potential, though they come with higher volatility and risk.
     

5. AU Bonds (15%):

   • ETFs to Consider: iShares Core Composite Bond ETF (IAF) or Vanguard Australian Fixed Interest Index ETF (VAF). These ETFs provide exposure to a range of high-quality, income-generating Australian

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