January 2024: rebalancing and portfolio update (3rd best year ever!)

In the world of investing, maintaining a well-balanced portfolio is crucial to reducing risk and maximizing growth potential. One of my most popular strategies is using exchange-traded funds (ETFs) to gain exposure to a wide range of assets. During this time, many investors are reviewing their strategies and reallocating their portfolios to maximize future returns.

A tangible example of this trend is a balanced approach with two key ETFs: SWDA, which tracks the global economy, and EIMI, which focuses on emerging markets. This combination offers global diversification that can reduce the impact of any turbulence in individual markets, allowing me to participate in economic growth around the world.
But basically, how did it go this year?

All things considered, the average return between stocks and ETFs is around 33%. Of which the average 18% comes only from the ETF portfolio (which represents the majority).

Obviously, I did not consider the free float, especially for some assets (see META +94% or Google + 88% but also Disney – 14% or Nexi – 24%).

I then considered closed rebalances and trading.

Returning to ETFs. This strategic move was driven by a desire to balance risk with sustainable growth opportunities. While SWDA offers exposure to established economies, EIMI provides the opportunity to participate in the growth of emerging markets, which often have greater long-term growth potential.

A so-so year for the latter (just above 6%), while decidedly solid for the MSCI World (abundant 19%).

Balancing a portfolio with ETFs targeting global and emerging economies offers an attractive option for investors seeking diversified exposure. This strategy not only reduces the risk associated with exposure to individual markets but can also provide growth opportunities in rapidly expanding sectors and regions. At a time when financial market volatility is the order of the day, attention to portfolio balance becomes even more important.

What are your good intentions for 2024?

Well, I would sign now for a photocopy of 2023. All things considered the third best of my career.

Keep moving forward!

Happy Trading

Lazy Bull


DISCLAIMER: I am not a financial advisor. These posts, videos, and any other contents are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.


Lazy Bull