Hey y’all.
Ive been a VOO and chill investor for a number of years. However, I’ve gotten a bit concerned with how top heavy it is. I know this is tired at this point, but VOO is now nearly 40% allocated to 10 equites. The other 490 divide up the other 60%. With SpaceX, Anthropic, and OpenAI on the horizon, that top 10 number may inch closer to 50%. VOO is as much of an AI momentum fund as it is a well diversified index at this point.
I looked into equal weight, dividend, and sector ETFs, but couldn’t really craft what I was looking for. I wanted a portfolio that
- Had a center of gravity around stable, blue chip, compounders
- International and sector diversification
- Maintained exposure to thematic growth trends
- Had non-equity assets as a ballast
So I decided to try and create my on index. It ended up being 36 positions. I personally like the composition, but fell split on my ability to actively maintain it. However, I can’t craft the portfolio I’m looking for without having a somewhat large amount of holdings.
Just wondering if anyone is trying to structure similarly.
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## Tier 1: Core Compounders (40%)
- Canadian National Railway 4.0% - Visa 3.5% - Constellation Software 3.5% - Atlas Copco 3.5% - JPMorgan Chase 3.0% - Apple 3.0% - Amphenol 3.0% - Acuity Brands 3.0% - Alphabet 3.0% - Mastercard 2.5% - Epiroc 2.5% - Hoya Corporation 2.5% - Intercontinental Exchange 2.0%
## Tier 2: Thematics (34%)
### Electrification & Grid (14%) - Schneider Electric 3% - Siemens 3% - Nextpower 3.0% - Hammond Power Solutions 2.0% - First Solar 2.0% - Materion 1%
### Euro Rearmament (11%) - Rheinmetall 2.5% - Airbus 2.5% - Safran 2.0% - Kongsberg Gruppen 2.0% - Rolls-Royce 1%
### Healthcare & Biopharma (7%) - Regeneron 2.0% - Roche 2.0% - Novo Nordisk 1.5% - Lonza 1.5%
### AI (3%) - Broadcom 2.5% - Arista Networks 1.0%
## Tier 3; Growth & Speculative (7%)
- MDA Space 2.% - Astroscale 2.0% - Adyen 2.0% - Kraken Robotics 1.0%
## Tier 4: Real Assets (18%)
### Fixed Income - Vanguard Total Bond Market 5.0% - Vanguard International Bond Market 2.0%
### Real Estate - Vanguard Real Estate ETF 2.0%
### Commodities - Sprott Physical Gold Trust 4.0% - Sprott Physical Uranium Trust 3.0% - Physical Copper Trust 2.0%