Diversifying a DGI Portfolio

[Robandcindy2]

(02-03-2014, 08:17 AM)Robandcindy2 Wrote: Thought I'd start a discussion on Diversifying a DGI Portfolio.

What measures do you use to diversify your portfolio?

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I found these two tools that allow you to play with various ratios for optimal gains:

Fidelity Sector Portfolio Builder

SPDR Portfolio Builder

Using these two services I have tuned our portfolio to the following ratios:

Sensitive
Energy 5%
Energy MLP's 5%
Industrials 10%
Technology 10%
Communication Services 5%

Cyclical
Basic Materials 5%
Consumer Cyclical 5%
Financial Services 15%
(Financial Services includes)BDC's 2%; Banks/Ins 5%; REITs 4%; Health REITs 4%

Defensive
Consumer Defensive 17%
Health Care 10%
Utilities 10%

Speculative
Company Stock 3%

Sorry if this doesn't format correctly.

Right now this works for us. Using Excel spreadsheet to monitor. Maybe we should have a Spreadsheet Section at our forum with tips and tricks plus downloads???

Cheers,

Rob

And just to clarify, this is just how I allocate our stock holdings. We also hold various bond funds (loosely following Rick Ferri's bond diversification) and equity mutual funds/ETFs (because of the structure of our 401K). I do use, and have included in the above ratios, "sector specific" ETF's to assist in diversification where the yield and cost index are favorable in my view.

Regarding equity mutual funds/ETFs: These I make an attempt to diversify our portfolio through the Large, Mid, Small criteria as well. Bond funds are diversified through short, intermediate, long, high yield, international.

I also attempt to track all of our holdings (equities & fixed) with regard to Foreign and Emerging markets.

Hey! A guy needs a hobby when it's too cold to play softball!