Thursday, August 24, 2017

Festina Lente - Make Haste Slowly (Almost a year down the road)

I had written about my pivot to a ETF based exposure to a global financial portfolio almost a year ago. A link to the old post is here below.

Here is an update on the performance and holding period.

ETF % Portfolio Target Weight Annualized Return Holding Period (Years)
Lyxor Europe 10US$ (JC5) 2.70% 19.00% 6.44% 2.30
STI ETF (ES3) 3.39% 1.00% 5.84% 2.40
Lyxor H.S.I ETF (A9B) 2.44% 2.00% 12.29% 2.03
DBXT MSJAP US$ (LF2) 2.05% 7.00% 10.31% 0.80
SPDR DJIA10 US$ ETF (D07) 4.82% 12% 13% 1.25
DBXT ASX200 US$ 10 (LF1) 4.58% 2.00% 10.48% 0.82
Lyxor Nasdaq US$ (H1Q) 4.21% 11% 18% 0.58
SPDR S&P500 US$ ETF (S27) 9.00% 12% 9% 1.33
DBXT CSI300 ETF (KT4) 6.00% 7.00% -2.40% 1.21
CIMB S&P Ethical Asia Pac Opportunities ETF (P5P) 7.65% 4.00% 20.83% 0.89
iShares Barclays USD Asia High Yield Bond Index ETF (O9P) 14.42% 20.00% 1.39% 0.65
CIMB Asean 40 ETF (M62) 6.85% 3.00% 7.23% 1.09

The weights are nowhere close to where I want them to be.
Unfortunately, markets don't co-operate in that sense.

I am close to bumping against the limit for the China ETF.

In terms of opportunities, right now, I do not see any ETF investment opportunity, as in the last 3 months or so, none of the ETFs have gone down.

This is because I am trying to follow

1) Add to an ETF which is under-performing.
2) Ignore the performing ETF
3) Use Investment addition to re-balance the portfolio weight rather than through active sales, i.e. avoid trying to time the in and out as all I want is global exposure to a set weight

I think it was Charlie Munger, who said, we are paid to sit tight and wait, so, that is what I am doing.

I must admit though, while the results are satisfying, the process is about as exciting as watching paint dry, which I guess is the objective i.e. make it boring, so that you do not take action !

Disclaimer :- 

I am not an investment professional.

I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.

Nothing written here is an invitation to buy or sell any particular stock.

At most, I am handing out an educated guess as to what the markets may do.

The market will always find a new way to make a fool out of me (and maybe, even you!).

Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.

I am not immune to that, so please understand that any past success of mine will probably be followed by failures