I have started investing earlier this year by buying a bunch of stock I had positive impressions of – which obviously is not a smart way to invest at all. I got lucky, I am up a bit, but I have also learned that it was exactly that – luck.
Since I have neither the time nor the motivation to thoroughly research multiple stocks, but still want to diversivy, I have looked into ETFs. Now my broker only offers very few ETFs as direct purchase. For all US traded stocks my only option would be buying them as CFDs, which is not an option I am comfortable with. It is my understanding that is is a general issue when investing from Europe.
My broker (Etoro) does however offer an alternative. Smart Portfolios. The broker has basically compiled stock from companies operating in certain segemnts under a headline like “BatteryTech”, and allows me to invest into this collection of stock without fee. I am holding the underlying assets and its an easy way to diversify in different sectors.
Another mistake I have made so far is that, while I have attempted to DCA, my version of that was to spend a fixed amount of money each month – but on different stock. I now understand that its better to buy selected shares in fixed proporsions every month, so you get an average on each of your holdings.
This leads me to my questions.
What are your thoughts on smart portfolios? A list of what is offered to me can be found here: https://www.etoro.com/discover/smartportfolios
I am planning to rebalance my portfolio using these instruments, and then DCA into them with a fixed share of each asset.
My current thoughts are:
Asset Share
SWDA.L 6/20
This is the only reasonable ETF I found which I can buy directly.
Specific stock 1 3/20
A company I have actually researched.
BigTech 3/20
https://www.etoro.com/smartportfolios/bigtech/stats
DividendGrowth 2/20
https://www.etoro.com/smartportfolios/dividendgrowth/stats
BatteryTech 2/20
https://www.etoro.com/smartportfolios/batterytech/stats
RealEstateTrusts 2/20
https://www.etoro.com/smartportfolios/realestatetrusts/stats
Dividends 2/20
https://www.etoro.com/smartportfolios/dividendgrowth/stats
Specific Stock 2 2/20
The company I work for and believe in.
Do you think smart portfolios as an instrument can provide a similar function as an ETF in a portfolio?
With that being the intention, does my spread make sense? What would you do differently?
Thanks for your thoughts!
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