For the incoming correction, I am planning to establish a position in the following ETFs:
1. SCHD, 30%
2. VIG, 20%
3. DGRW, 10%
4. DIVO, 15%
5. IDVO, 15%
6. BRK.B, 10%
This will be my saving jar portfolio. The goal is to achieve long-term steady capital growth. Explaination:
1. Both SCHD and VIG will be key player since they are passive-managed fund and have a long and good record. I allocate more weight to SCHD since it is more conservative. They have low portfolio overlap, good for diversification.
2. DGRW is an alternative to VIG. It relies on analysts’ opinions, which is different from VIG’s methodology.
3. DIVO is designed for income orginally. As a dividend ETF, it has higher return and lower drawdown than SCHD, so I add it into my portfolio to improve my holding experience.
4. IDVO for international exposure to diversify. In the same time, IDVO can hedge dollar depreciation risk.
5. BRK.B. BRK.B holds many great assets.
I am eagerly asking for opinions. You're welcome to comment! :)