Wide diversification for safety
Dexterity’s portfolio now comprises 14 globally-themed ETF.
Part of me longs to heavy-up on Clean Energy and Electric Vehicles; but I’ve committed to holding no more than 1% of the portfolio in any one company (eg Tesla), so I’ve recently re-distributed the weight equally across all 14 funds. Some companies appear in more than one ETF. To gauge overlap, we’ve compiled a list of the entire holdings with their percentages:
The largest holding is in an American company offering water technology (Xylem). It comprises 9% of the Water index, but only 0.65% in the overall portfolio. Tesla is a close second, and
Most overlaps are across only two ETF: MSCI World (a general index holding several hundred companies) and any of the other 13 more focused ETF. Now I feel comfortable with the thematic approach, I shall consider dropping the MSCI World index at the next six-monthly review.
A very few companies do appear in more than two ETF. Nvidia, which makes interactive computer graphics, is a good example. It fits into Innovative Tech, Electric Vehicles, Blockchain Tech and World. Even so, it represents less than 0.2% of the total portfolio
At todays count, there are 1,500 holdings in the portfolio, excluding 350 overlaps.