What are your passive investments portfolio made up of?
Hi guys, just graduated fresh out of college with abit of savings. While I love to scour the forums for PE related stuff, I realise my knowledge on being a passive retail investor is lacking? Notwithstanding the current pandemic, what are your usual passive investments (bonds,etf,mf,REITs,equities) and in what proportion? Not trying to copy ideas, just wanna get a hang of the right step into passive income!
I had not passively invested before Corona but after the market drop I decided I should buy something to hold. I decided I should just pick a single ETF that makes sense in general but also makes sense post-corona. I ended up buying DGRO with it's top industry exposure being banks and pharmaceuticals, it's top sector exposure being financials, tech and health care and having among it's top companies Apple, JP Morgan Chase and Microsoft which all seem to be good long term bets. However, the top company (Microsoft) is only 3% of the portfolio so it's not like I'm heavily exposed to their moves in particular.
That's my move but I'm also interested in what others are doing. Eventually I do want to build up a passive portfolio that is around 60-80% bonds and the rest stocks (that I pick on my own) and maybe some REITs but right now investing into real state is not a good idea when you can just invest in the stock market and have the might of the Federal Reserve on your side. US Bonds will just net you a smaller profit than just stocks, again because of my buddy J-Pow. And foreign bonds are scary due to there probably being some defaults incoming.
only advice I'd give here is do not go passive with fixed income. the nature of that market is such that even the average active fund out performs the index. equity? sure, knock yourself out, you could do far worse than DGRO
this thread made me smile. no one mentioning triple leveraged ETFs, inverse shit, commodity plays, you are all going to be rich af one day. buy something broad (DGRO/VOO/VTSAX) and focus on increasing your shares in it rather than what you're buying shares of.
well done monkeys
VBR is a small cap that has growth potential because it fell quite a bit due to the virus, wouldn’t be a bad one to check out
I have chunks of indexes and some random stocks. The stocks is moreso because I'm an idiot, no real reason.
My favorite and bigger passive investments are angel deals in solid operators I know outside of my main area of expertise.
Lots of VTSAX
Voo
VOO!
SPY + some XLP since I think it is underweighted on defensive consumer stocks + some XLF since financials felt a bit too beaten down
Right now I have a 50/50 split between S&P500 Index ETFs and an European Investment Grade Bond Index Fund with heavy exposure to Corporate bonds and ABS (healthy mix of AAA and BBB. I'm also really attracted to an EM fund with significant exposure to SEA and LatAm but want to wait until COVID-19 blows over LatAm.
NLY....pays a HUGE dividend (now 16%)
Annuities my Northwestern Mutual Financial Advisor sold me duh!
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