Share Portfolio Update
This is the fourth share portfolio update on the path to achieving a $1 million dollar portfolio. Firstly, I have kept a steady investment account balance. Secondly, building on the portfolio from March 2021, I have invested a higher amount of $2,000 across my brokerage accounts. Thirdly, I wanted to set aside some income to invest in ETF’s month. Therefore, I made my first acquisition investing in ETFs through Pearler. This month I focused on learning about cryptocurrency. Moreover, I have written a blog on How to Invest in Cryptocurrency in 2021. Given the surge in popularity and growth in cryptocurrencies, it’s important to view the investment from a holistic perspective. I have found it interesting learning about the risks and potential of investing in these digital assets.
The other objective was to learn more about investing in the US Sharemarket exploring Stake an online trading platform. I made my first purchase in US stocks getting a free share in GoPro and you can too if you sign up here. For disclosure, as this article contains affiliate links I would receive a small commission if you sign up. I am still on track to reach my goal of an overall portfolio value of $20,000 by June 2021.
Return on Investment
The return on investment has continued the trend of red this month at -7.30%. The downside returns are driven by the drop in Red Bubble and Zip Co shares. Furthermore, given the downside in the tech shares for the short term, I will try to invest more in a diversified spread of assets. Keeping in line with my goals from last month I invested in some ETFs. This would diversify some of the risks in my portfolio that are weighted in the performance of specific shares.
Portfolio Update – Shares and ETFs
The investment that I made during this month were were Vanguard Msci Index International Shares Etf (VGS) and Red Bubble (RBL). This ETF focuses on the MSCI World ex-Australia index. I chose this ETF as it provides exposure to some of the world’s largest companies listed. Furthermore, It offers low-cost and diversified securities that provide an opportunity for long-term growth in international economies outside Australia. However, an important point to consider is that this EFT will not provide a hedge to the fluctuation of foreign currencies against the Australian dollar. To balance the downside I acquired a small portion of Redbubble shares. I think they have been exposed to a strong market correction and may have some potential upside in the future.
Looking Ahead
Next month, I will aim to surpass the $18,000 mark. The focus will be to continue to grow the overall portfolio value. I will try increasing the investment in Pearler as I build on ETFs in the future. I feel more comfortable with the level of risk of the portfolio. Looking ahead it will take some time to turn around the weighting of the portfolio. With a more structured goal of diversity across the portfolio, I aim to achieve a more balance approach.
