Hello everybody!
I find myself in a situation where I have about 370k USD to invest. I know this is a large sum of money to some, and I certainly have no intention of “flashing money” - I would much rather be in a position where certain circumstances did not occur and I did not have this responsibility. I just felt that you can’t always trust what you find on Google, so I wanted to hear from people actually doing this.
Now, for a year I have sat on bonds, because I could not bring myself to allocate elsewhere. I have come to the right state of mind to begin allocating to a small basket of ETFs, all equity, as I'm nearing 30. For background, I have an understanding of finance and macro, have studied economics and work in a finance-adjacent field.
At the moment, I was thinking of a weekly investment of about 0.5% of my portfolio, going in as follows (all UCITS funds as I am UK-based):
45% IWDA (all world, 70% of which is US)
25% SMEA (Europe)
25% KWEB (China Tech)
5% LTAM (Latam)
With the aim of scaling into these positions in the next two years. I suppose that the underlying thesis there would be a truer "global" exposure compared to all world.
To play devil's advocate, I have considered two other scenarios:
1. just dca into IWDA. This was my original plan, but the most recent developments and a recent visit got me somewhat bearish US. I struggle to see significant overperformance in the next few years and am considering whether Europe, China and Latam are at more interesting inflections.
2. a sector-based allocation: GLD TLT (33%) XLV XLK XLP (67%)
Bonus point: dca'ing 0.5% would be more for peace of mind, but that's just something I came up with on a whim. How to people tackle these circumstances, especially after such high runups in US equities? Obviously sitting on my hands as I have done in the last few years has served me poorly.
I appreciate that everyone's position and risk appetite varies, but as I am alone in this, I would like to hear some thoughts on my initial allocation, whether I am making any glaringly obvious mistake, and, knowing my time horizon and exposure objectives, whether I would be better off another way.
Thank you to everyone who will respond. All the best