Portfolio making suggestion

Hi Annu.

Having a mix of US and Aussie shares is a fairly common approach by many people on Pearler.

Most would typically choose an Aussie index fund than a group of individual companies, but if that’s what you prefer that’s up to you.

I think approaching it in a diversified manner and investing a solid amount each month is a solid recipe for growing a long term portfolio :)

Sometimes people choose global markets over just US only to diversify themselves even more, but that’s about all I have to add.

Happy investing!

Investing in a single ETF like IVV, which tracks the S&P 500, can be a solid strategy, especially if you’re looking for exposure to a broad range of top U.S. companies. This ETF provides a diversified investment in large-cap U.S. stocks, which historically have offered good returns over the long term. However, there are a few considerations to keep in mind with this approach:

1. Diversification: While IVV itself is diversified across many sectors and companies, focusing all your ETF investments in just one product exposes you to market-specific risks. Diversification across different asset classes (e.g., bonds, international stocks, real estate) can help mitigate these risks.

2. Dividend Reinvestment: As you mentioned, IVV pays dividends. Reinvesting these dividends can significantly enhance your investment returns over time through the power of compounding. Since IVV is a low-yielding fund (around 1.5%), the impact of not reinvesting dividends immediately might be small, but over many years, it can add up.

3. Systematic Investment Plan (SIP): Your strategy to invest $5,000 monthly into IVV is a form of dollar-cost averaging, which can help reduce the impact of volatility by spreading out your investment at regular intervals. This approach allows you to buy more shares when prices are low and fewer when prices are high, potentially lowering the average cost per share over time.

4. Holding Individual Stocks: Since you also hold $15,000–$20,000 in individual Australian stocks, you are not putting all your investment eggs in one basket, which is beneficial. This adds a layer of diversification, especially if these stocks span various sectors or industries.

In summary, your strategy of focusing on IVV for your ETF investment while maintaining a portfolio of individual stocks provides a balanced approach. However, consider diversifying your ETF investments into other ar

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