My High-Growth and All-Weather Portfolios

Tue, Jun 4, 2019 3-minute read 498 words
Update, May 2020: Motif shut down their services in May 2020, so I moved all my assets to a similar platform, M1 Finance.

I have been using Motif Investing to build and trade stock portfolios since 2013. It’s a great low-cost platform that enables you to build custom portfolios for either short-term trading or long-term investing. In this post, I briefly review my current high-growth and all-weather portfolios, along with investment strategy and philosophy behind them.

The High Growth Stock Portfolio

The ALEX motif was named after my nephew, and consists of 28 stocks from the industries with the high long-term growth potential:

  • space exploration
  • robotics, drones, artificial intelligence and automation
  • e-commerce and financial technologies
  • cloud computing
  • health, genetics, and cloning
  • alternative and renewable energy
  • cannabis

These are the currenth holdings (all have equal weights):

  • AAPL
  • AMRC
  • AMZN
  • BAH
  • CGC
  • CHDN
  • CRM
  • GOOG
  • HEI
  • HON
  • HXL
  • IIPR
  • ILMN
  • INTC
  • ISRG
  • MA
  • NFLX
  • NOW
  • SPCE
  • TDG
  • TDY
  • TEAM
  • TXN
  • V

I tried my best to diversify this portfolio by covering as many different industries as possible. Still, due to its “futuristic” nature, it’s heavily skewed towards technology. You can track the peformance of this portolio and add it to your own assets on M1 Finance.

The All-Weather Stock Motif

ZEN motif is my attempt to own an “all-weather” portfolio that beats market volatility and survives the downtimes while yielding decent returns over the long term. It is a diverse and balanced mix of multiple asset classes, both inflationary and deflationary, that follow the investment principles of Ray Dalio:

  • 30% US Stocks (Vanguard mid-cap growth ETF)
  • 20% Bonds (Vanguard corporate bonds ETF and PIMCO inflation-protected bonds ETF)
  • 15% non-US Stocks (ETFs that cover global ex-US real estate, emerging markets, and international markets)
  • 15% Real Estate Stocks (Fidelity real estate ETF)
  • the remaining 20% are allocated in Vanguard information technology ETF and Vanguard Consumer Staples index fund.

The current holdings in ZEN portfolio incude:

  • FREL
  • LTPZ
  • SPEM
  • SPLV
  • VCLT
  • VDC
  • VGT
  • VNQI
  • VOT
  • VPU
  • VT
  • VUG

You can track the performance of this portfolio and add it to your assets on M1 Finance here.

Maintenance and Future Plans

I do rebalance all three motifs on a quarterly basis, usually at the end of each quarter. Currently, my plan is to hold ALEX for at least 5 more years. Naturally, I am also thinking about moving ZEN to my Roth IRA (which I have with Motif) to minimize the taxes.

There are certainly better performing (and professionally built) stock motifs out there. But if you decide to buy one of my motifs, please consider the following important disclosures:

Disclosure:
The information in this blog post (and other blog posts related to finances) are based on my personal opinion and experience, and should NOT be considered professional investment advice. Seek a licensed professional for advice on this and other investment opportunities. Also please note that if you purchase one of the portfolios listed above, I will earn a small commission from M1 Finance.