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  • Writer's pictureStephen Walters

Taking profits and diversifying risk

Feeling astonishment at the growth of Dexterity’s portfolio, and believing loss hurts more than gain pleases; I’ve taken some profits from the best performers, and reinvested them into other funds, in order to diversify the risk. I'm now holding fourteen ETF - all of them global and thematic (eg Water) - and each one contributing to some aspects of Environment, Socially responsibility and good Governance [ESG].

I like themes because I can relate more easily to them than to geographical sectors. In addition, they minimise overlap; for instance there’s no connection between the Water and Cyber Security indices.

The portfolio now has holdings in about 2,400 companies, and of those about 24 [1%] do appear in more than one ETF, but no company amounts to more than 1% of the total portfolio. The largest is Tesla, at 0.8%. Among the largest ten are four other American companies, four Chinese, and a New Zealand one.

If to diversify any of your profits would add to your peace-of-mind; over the holiday period I’ll be available all the usual days to confer.

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