I'm planning my equities portfolio and need some opinions on the right ratios?

So basically I'm looking to buy CNDX (NASDAQ) and IWDA (global) directly on a place like SAXO.

For small caps, I'm looking into using MoneyOwl (retail investors don't have direct access to their DFA approach), partly also to try out this new RoboInvest thing.

My question here is between CNDX, IWDA, and MoneyOwl robo-advisor, what do you think a good portfolio ratio looks like? Just 33% for each? Or something different?

MoneyOwl

Discussion (2)

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Harvey Tan

13 Oct 2019

Your allocation or portfolio ratio as you put it would depend on what is your risk tolerance. Small-cap funds, depending on the geographic exposure would have varying volatility. For example, US-focused small-cap funds would be less volatile than EM-focused small-cap funds.
But generally, speaking, they are more volatile than large-cap funds.
If you are looking for a pure play in the small-cap space, I would recommend that you skip Moneyowl directly and invest into a small-cap ETF. As for the geographical exposure, that would depend on your risk tolerance. If your risk tolerance is high, you may want to invest in EM-focused small-cap funds. Alternatively, you can invest in global small-cap funds. I’m pretty sure there is an Irish-domiciled ETF that cater to this type of exposure.
CNDX (Nasdaq 100) and the small-cap ETF would serve as the growth component in your portfolio and IWDA would serve as the main building blocks in your portfolio. I believe a ‘balanced’ portfolio would look like 60/20/20. 60 in IDWA and 20 each in CNDX and the small-cap ETF. Not sure about your bond component but you should factor that in your consideration when constructing your portfolio as well.
If I remember correctly, IWDA is almost 60% in the US. So there will be some overlapping between IWDA and CNDX. However, the composition of CNDX is tilted towards the technology sector. I believe currently at around 40% ish. So just take note of this.
On a side note, I am starting a financial blog. Do check it out.

http://investment-blueprint.com

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Hariz Arthur Maloy

13 Oct 2019

Independent Financial Advisor at Promiseland Independent

DFA Funds via MoneyOwl is not a pure small cap value approach. It's a global portfolio benchmarking against MSCI World with tilts towards small cap and value.

So, I'd probably skip on IWDA and just go with DFA because going for both is just overlap and you go against the DFA tilts. If you want large cap growth exposure, sure you can add NASDAQ 100 as a possible option. I suggest you speak to the MoneyOwl advisors for perspective.

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