ETF Bloke’s Portfolio

I designed this portfolio with regard to my individual financial situation and opinions.

Let me highlight what makes this portfolio mine:

1. I only want exposure to the Australian market relative to it’s global market share

The Australian share market represents only 2% of the global share market value. If I invested 50% of my portfolio into the ASX then Australian shares would be 25 times over represented in my portfolio.

This is a phenomenon known as ‘home bias’.

There is nothing wrong with having a home bias. But it doesn’t suit my individual circumstances when you consider that:

2. I am an Australian Expat and spend considerable time and money overseas

I earn money in USD.

I spend money in USD, EUR, GPB, CFA – you name it!

Therefore I need to have more exposure to international equities than your average Australian who lives, works and spends in Australia.

So why not go with a ready made Vanguard Growth portfolio?

Well, besides the fact that none of Vanguard Australia’s ETF Portfolios align with my stated objectives above:

3. I want to have control over my Asset Allocation

I am a tinkerer.

I want to be able to make changes to my allocations based on my research and I want to increase my allocation to income as I age.

…and approach early retirement!

I don’t want to rely on a portfolio that is made for Joe Bloggs – I want a portfolio made specifically for ETF Bloke!

My ETF Portfolio

Growth – 70%

• 58% in VGS
• 5% in IJR
• 5% in VGE
• 2% in VAS

Income – 30%

• 21.5% in VBND
• 5% in VAF
• 3.5% in AAA

Now that you know what is in my portfolio it is time for you to learn how to create your own Australian ETF Portfolio.