Thursday 12 May 2022

Strategy: May 2022

 

I've started to accumulate more of my World ETFs during this correction. Prices have made VWRD, LSPU, VHYD and WQDV a bit more reasonable and I would even say fairly valued. However, it doesn't mean that the market won't fall further, its just that I am never able to time the bottom anyway.

Completed my purchase early in the evening (Thursday). As I don't normally trade on Fridays due to market distortions as shortists close their positions, I'll continue buying next Monday.



Portfolio News

WQDV is changing benchmark in June to the MSCI World High Dividend Yield ESG Reduced Carbon Target Select Index. As a result, the number of holdings will be cut by half to 177. 

What is more significant is that the % holdings of IT stocks will rise quite significantly to 22.87% of the portfolio. It will be interesting to see how the ETF managers handle this transition given the downward trajectory of tech stocks at the moment.

While the halving of the number of holdings is not that great from the diversification perspective, 177 international mega/big cap holdings is a reasonable number. For the time being, I'm buying VHYD instead (I hold both ETFs as part of my policy to buy the iShares and Vanguard versions) but I'll return to adding WQDV after the transition is completed.



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4 comments:

  1. T-Minds14 May 2022 at 01:02

    Impressive to see your dividend growth over the years. I hope to be like you one day, with FI!

    ReplyDelete
  2. TheFinance.sg15 May 2022 at 07:48

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    ReplyDelete
    Replies
    1. Hello World21 May 2022 at 21:07

      Hi Derek, I am a big fan of TheFinance.sg and it is one of the local sites I recommend to my friends. However, I prefer to have less publicity for my blog so I would prefer not to be featured in TheFinance.sg, thanks for understanding!

      Delete
    2. TheFinance.sg23 May 2022 at 17:07

      Hi BuyafterCash,

      Thanks for your reply and I totally understand.

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      Delete

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