r/valueinvesting
Is it crazy to have 36 postions across my retirements?
Concerned about VOO's top-heavy concentration (~40% in top 10), the author is DCA-ing out into a custom 36-stock portfolio of blue-chip compounders, electrification, and European defense names.
- VOO's top 10 holdings account for nearly 40% of the fund, making it far less diversified than investors assume.
- Upcoming mega-IPOs (SpaceX, Anthropic, OpenAI) could push top-10 concentration toward 50%, amplifying single-sector risk.
- VOO has effectively become an AI momentum fund rather than a broadly diversified index.
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.
———————————————
Here are my positions below if interested. I’ve been DCA’ing out of VOO and into these with target weights over the last 6 months or so.
\\## 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%
If you can track them all its fine.
This looks like a really good way to not make money.
https://imgur.com/a/EzKkHhd
To me, many of those look overweight and related to the AI and defence build out and reliance on imports from China. If anything hits AI or defence it takes out those stocks far worse than the index. Copper is linked traditionally to a solid economy and ai linked. You aren’t diversified anywhere near enough.
S&P500 already announced they won't change the rules for spacex. So they won't be joining that concentration list until they meet the requirements. So keep VOOing
The problem with under 100 stocks is you are more exposed to the business risk of each company. Have you ran a correlation test to make sure they are not all moving in the same direction? Stock Rover has one you can use on the free trial. Testfolio has it too, but it limits you to like 8 stocks unless you pay.
The problem with equal weight is that it fights momentum, but there are ETFs that are not quite as concentrated. AVLV, but is a good bit less concentrated than VOO. Another option could be to keep these proportions on your individual stocks, but make it not more than 30 percent of your equities sleeve. You could use AVGV as your globally diversified core. The Avantis funds are factor weighted, so they are not as concentrated as market weight currently is.
Yes it is.
- Rule of thumb for 90% of people is have 500 stocks 2.I’m assuming you want to me a value investor SpaceX Anthropic and OpenAI are a hard pass in any metric
If you believe in the companies. That's one of the nice things is you get to pick the exact allocation of what you want, and decide when you want to add. You basically built your personal ETF
Looks diversified enough. Health care is not popular. I am leaning to focus on etfs such I can catch the rises and reduce the losers. They change every year. I have SPY, equal weight SPY, high interest from highest yield, DIA, BRk\_B. When Spy went down Brk\_B went up. One account was returning just +3.5% last year I made it more aggressive. Well it shot up +31% YTD(last Thurs). Now I need to slow it down with bonds.
If you invest in power house supplies data center you could do better than these stocks.
IMO it looks good, diversification is good both in sector and in country. One of the first portfolio that I come across here that looks actually good.
Seems like a lot of positions to keep up with. Check out VFMF for your equity exposure.
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