Thanks, I've been building it for a while now so the portfolio is starting to generate some nice side income (which currently gets reinvested).
I do own ETFs in my 401k, that is just not listed here. Perhaps I'll add that at some point too to provide a full picture, although I'm tracking my 'easily accessible' accounts here mostly as that is the income I will be able to access during early retirement.
I find that I can just as well build my own ETF, not pay any comissions after the initial buy, rebalance using new funds, get a predictable dividend stream (that can be reinvested for free using drip or frip) and get an overal slighly higher yield than some of the mainstream ETFs. I can focus on some of the dividend champions and dividend growers as well.
In terms of commisions it would come to around: $250,000 * 0.01* 0.04 = $100 per year - which is what the VINIX charges in expense ratio. $100 / $7 = 14.2 ---> This mean for the same price I can do around 14 trades per year, which is currently plenty for me as I try to go after positions of around $2-$3k.
I will probably diversify into ETFs for some international exposure as tracking foreign companies on top of the US companies becomes too time consuming. Also if I ever get too old to manage my own portfolio it will be ETFs all the way. Also if I find that the portfolio management starts taking too much time I might switch a larger portion towards ETFs, but that is not yet the case for me.
Hello Alphatarget,
ReplyDeletevery impressive numbers you have. But why only single stocks and not some ETF?
Best regards and take care
EternalYield-Team
Hello EternalYield,
DeleteThanks, I've been building it for a while now so the portfolio is starting to generate some nice side income (which currently gets reinvested).
I do own ETFs in my 401k, that is just not listed here. Perhaps I'll add that at some point too to provide a full picture, although I'm tracking my 'easily accessible' accounts here mostly as that is the income I will be able to access during early retirement.
I find that I can just as well build my own ETF, not pay any comissions after the initial buy, rebalance using new funds, get a predictable dividend stream (that can be reinvested for free using drip or frip) and get an overal slighly higher yield than some of the mainstream ETFs. I can focus on some of the dividend champions and dividend growers as well.
In terms of commisions it would come to around:
$250,000 * 0.01* 0.04 = $100 per year - which is what the VINIX charges in expense ratio.
$100 / $7 = 14.2 ---> This mean for the same price I can do around 14 trades per year, which is currently plenty for me as I try to go after positions of around $2-$3k.
I will probably diversify into ETFs for some international exposure as tracking foreign companies on top of the US companies becomes too time consuming.
Also if I ever get too old to manage my own portfolio it will be ETFs all the way. Also if I find that the portfolio management starts taking too much time I might switch a larger portion towards ETFs, but that is not yet the case for me.