Some Portfolio Recommendations
In last week’s issue of Cabot Stock of the Month, I introduced you to a new section of the newsletter—ETF Strategies, which combines the portfolios and strategies of the former Cabot ETF Strategist newsletter.
I also created Risk Tolerance classifications: A for Aggressive, M for Moderate, and C for Conservative, for both ETF Strategies and the investments in the Cabot Stock of the Month portfolio.
I then offered you a suggested allocation portfolio of stocks/ETFs, bonds/income, and cash, based on your age range:
| Age | Stocks/ETFs | Bonds/Income | Cash |
| 0-40 | 80% | 15% | 5% |
| 41-60 | 70% | 20% | 10% |
| 60+ | 50% | 30% | 20% |
Next, I presented you with some suggested percentage allocations of non-cash investments, formulated on your age, as well as your personal risk tolerance.
| | Non-Cash Investments |
| Age | Aggressive/Moderate/Conservative Percentage Recommendations |
| Aggressive Investor | Moderate Investor | Conservative Investor |
| 0-40 | 70/20/10 | 50/40/10 | 30/30/40 |
| 41-60 | 60/30/10 | 40/40/20 | 20/30/50 |
| 60+ | 40/40/20 | 30/30/40 | 10/40/50 |
I then promised you that I would offer you some specific portfolio ideas using our current stocks and ETFs in Cabot Stock of the Month. You will, no doubt, mix and match some of these ideas, based on the amount of your current investments, your personal investment goals, and your risk tolerance.
Consequently, some of you, say in the 41-60 age range, may have already accumulated a sizeable portfolio and may therefore feel more comfortable with taking on more risk than suggested here. Likewise, if you are a beginning investor, you may want to be more conservative in your choices.
It’s ultimately up to you, but I’m happy to help you with a variety of portfolio ideas. We’ll begin with portfolios consisting of nine investments each, in which you can take the suggested investments in each risk tolerance category and mix and match them to arrive at the total suggested allocation.
For example, in the first age range (0-40) Aggressive portfolio below, you can buy any combination of GTLB, MHO, and DVN to build the 70% of your portfolio that will consist of aggressive investments. For the moderate classification, you would buy some combination of QCOM, IVV, and EMB to come up with a selection of investments that equal 20% of your portfolio. And lastly, you would purchase amounts of DJD, IYE, and IXG to equal the 10% of your portfolio that would be considered conservative.
As we grow our portfolios of stocks and ETFs, I will have many more portfolio combinations for you to sample. But for now, here are a few to get you started:
Age 0-40
Aggressive Portfolio
| 70% A | 20% M | 10% C |
| GTLB | QCOM | DJD |
| MHO | IVV | IYE |
| DVN | FIW | IXG |
Moderate Portfolio
| 50% A | 40% M | 10% C |
| MP | QCOM | DJD |
| BTAL | IVV | IYE |
| SBIO | FIW | EMLP |
Conservative Portfolio
| 30% A | 30% M | 40% C |
| LIT | QCOM | EMLP |
| DVN | IVV | IYE |
| GTLB | FIW | IXG |
Ages 41-60
Aggressive Portfolio
| 60% A | 30% M | 10% C |
| BTAL | QCOM | DJD |
| SBIO | IVV | IXG |
| MP | FIW | EMLP |
Moderate Portfolio
| 40% A | 40% M | 20% C |
| MHO | QCOM | IYE |
| DVN | IVV | EMLP |
| LIT | FIW | IXG |
Conservative Portfolio
| 20% A | 30% M | 50% C |
| GTLB | QCOM | DJD |
| MHO | IVV | IYE |
| SBIO | FIW | IXG |
Ages 60+
Aggressive Portfolio
| 40% A | 40% M | 20% C |
| BTAL | QCOM | DJD |
| LIT | IVV | IXG |
| MHO | FIW | EMLP |
Moderate Portfolio
| 30% A | 30% M | 40% C |
| GTLB | QCOM | EMLP |
| MP | IVV | IYE |
| SBIO | FIW | IXG |
Conservative Portfolio
| 10% A | 40% M | 50% C |
| MHO | QCOM | DJD |
| DVN | IVV | IYE |
| SBIO | FIW | EMLP |
I hope these ideas will help you design the portfolio that will work best for you. Of course, the specific stock and ETF recommendations will change with the market and sector outlooks. So, stay tuned!
| Stock of the Month Portfolio |
| Company | Symbol | Risk Tolerance |
| Devon Energy Corporation | DVN | A |
| GitLab Inc. | GTLB | A |
| Invesco Dow Jones Industrial Average Dividend ETF | DJD | C |
| M/I Homes, Inc. | MHO | A |
| MP Materials Corp. | MP | A |
| QUALCOMM Incorporated (QCOM) | QCOM | M |
| ETF Strategies Portfolio |
| Fund | Symbol | Risk Tolerance |
| iShares Core S&P 500 | IVV | M |
| iShares US Energy | IYE | C |
| iShares Global Financial | IXG | C |
| iShares TIPS Bond | TIP | M |
| iShares 10-20 Yr Treasury Bond | TLH | C |
| iShares Core US Treasury Bond | GOVT | C |
| iShares J.P. Morgan USD Emerging Markets Bond | EMB | M |
| Invesco Dow Jones Industrial Average Dividend ETF | DJD | C |
| AGFiQ US Market Neutral Anti-Beta fund | BTAL | A |
| ALPS Medical Breakthroughs ETF | SBIO | A |
| Renaissance IPO ETF | IPO | A |
| First Trust North American Energy Infrastructure Fund | EMLP | C |
| First Trust Water ETF | FIW | M |
| Global X Lithium & Battery Tech ETF | LIT | A |
