Portfolio performance report Q2 2019
· 312 words · 2 minutes read
Composition
The composition of my portfolio hasn’t changed since last quarter. Also, there’s no need to rebalance yet.
| Type | ETF | Ticker | Allocation |
|---|---|---|---|
| Government bonds | Xtrackers Global Sovereign | XG7S | 18% |
| Developed | iShares Core MSCI World | IWDA | 49% |
| Small cap | iShares MSCI World Small Cap | IUSN | 14% |
| Emerging markets | Xtrackers MSCI Emerging Markets | XMME | 10% |
| REIT | Amundi ETF FTSE EPRA NAREIT Global | EPRA | 9% |
Growth
Portfolio performance as of July 1st 2019.
I didn’t invest any additional funds during the last three months. I have a standing order that automatically sends monthly deposits to my investment account on Lynx. However, I’m waiting to accumulate a bit more cash to offset transaction fees.
Nonetheless, the total value of my portfolio has grown by €789 or 2.5%. All in all, I’m seeing gains of €2,801 on the entire portfolio. This equates to a 9.5% total return.
Performance per asset
Performance per asset as of July 1st 2019.
The stock market was badly affected by the trade wars during the month of June. The bonds and real-estate markets were largely untouched though. This is the power of diversification displayed in practice!
Conclusion
Last month, I did a deep dive into the Sharpe ratio of my portfolio. It came out that the composition of my portfolio results in a higher return/risk ratio than the S&P500 or MSCI World index by itself. Furthermore, I’m seeing good gains in practice. This gives me the confidence to stay the course and not alter the composition of my portfolio.
Quote to ponder about
“Don’t look for the needle in the haystack. Just buy the haystack.” — Jack Bogle
This is a classic quote by the founder of index funds, who unfortunately passed away earlier this year. Instead of looking for the needle in the haystack (active investing), we buy the entire haystack (passive investing). After all, the needles are in there somewhere!