IB portfolio for long-term investing

R

Riches1

New member
Hello,

My plan is to invest money long-term (20+ years) and add around 2000 CHF monthly to my portfolio on IB. I was wondering if the following portfolio could make sense for long-term investing:

90% S&P 500
10% VT World

Or even S&P 500 exclusively, seeing as those US companies basically span the entire world as well, to an extent? Or would this be a dumb idea?

Or perhaps

90% S&P 500
10% CHSPI

Would be grateful for your thoughts / ideas.
 
The first thing is that I’m a beginner and only started investing very recently. But from all the information I've gathered, I think your point of view is very similar to mine, though I lean more toward VTI, VT, and the Swiss market.

VTI: 60-70% (reason: a bit more diversity in the U.S.)
VT: 25-30% (due to the inclusion of China/emerging markets, among others)
SWISS MARKET: 5-10%

As I said, I’m probably just as much of a beginner as you, but your logic makes sense to me.

Let’s hope for more opinions
 
Riches1 said:
Or even S&P 500 exclusively, seeing as those US companies basically span the entire world as well, to an extent? Or would this be a dumb idea?
Click to expand...
It's not a dumb idea. But you have to know that you are putting a strong bias in your portfolio towards US companies. If the future lies with another country, you may be losing out.

I prefer diversification, but many people invest only in US stocks.

And if you are doing 90/10, I would think that 90 VOO and 10 CHSPI is better than adding only 10 VT to the mix which will not move the needle much and is also in USD.
 
I thought about it a bit more, and I finally came up with this portfolio:

70% VT
30% VGT

Thoughts behind it:

- relatively high diversification with a 70% base from VT, with "only" around 60% US.
- 30% tech tilt from VGT. The world will inevitably move towards more tech and more profitability from tech, in my view. Over the long term, I can't really see tech doing poorly.
- both have pretty low TER, although VGT has 0.1%, which is markedly higher than VT, but still good.
- very simple to manage.

The one thing that bothers me a bit is that there's quite a bit of overlap between the two, since VT obviously also contains a lot of the big tech companies. Does this really matter, though? Any other thoughts / remarks about this portfolio for long-term investing?
 
Riches1 said:
The one thing that bothers me a bit is that there's quite a bit of overlap between the two, since VT obviously also contains a lot of the big tech companies. Does this really matter, though? Any other thoughts / remarks about this portfolio for long-term investing?
Click to expand...
Maybe you could do a mix with VEU to have some pure ex-US stocks. Or you could use VOO to avoid the full concentration on tech stocks.

It does not seem too bad, but you have to know the biases in this portfolio and it has to fit your investing style and risk capacity.
 
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