Once in a blue moon, I get the occasional question from a curious reader who would ask me about my portfolio and of course, what exactly am I holding on to?
Only index ETFs?
Dig a little deeper and you will realize that I hardly, if ever, share anything outside of my core index portfolio. Well well, the only clues you’re going to get is from my asset allocation page.
Until now, that is.
My target allocation still hasn’t change –
London Stock Exchange : World Index VWRD | 30%
Singapore Stock Exchange : ES3 | 30%
Singapore Stock Exchange : A35 | 30%
Singapore Stock Exchange : REITs | 10%
I’m still not a big fan of sharing specific holdings but I can probably give you a slight peek at the big picture.
What happened is that with my portfolio, somehow I have managed to build myself a tiny little dividend machine that is chugging along nicely for a monthly payout. I didn’t exactly set out to achieve a monthly payout but it just ended up that way.
The distribution schedule below is approximate but you get the idea.
I’ll have to admit – index investing is kind of boring (that’s the whole idea), and it is actually rather nice to have positive reinforcements (however small they might be) monthly when I’m being handed money! Keching!
Again, disclaimer alert : don’t set out to achieve something like this for the sake of monthly payouts. Make sure whatever you buy, it is because they are worth what you’re paying for.
I’ll be frank with you – the dividends from REITs are nothing mind-blowing due to their low allocation of 10%. Furthermore, my REITs fall under the “defensive” category. That means the chunk of dividends contributions actually come from my index ETFs.
If the idea of mixing index ETFs with REITs seem familiar to you, the name Rick Ferri might just ring a bell for you.