Moofolio Vision – Survey says

Mooers overwhelmingly favoured the US Super Ten – a portfolio comprised of the Magnificent Seven tech stocks and $Disney (DIS.US)$, $McDonald's (MCD.US)$ and $Walmart (WMT.US)$. It’s hardly surprising – US stocks, and especially the big-name tech stocks, have in many cases delivered stunning returns over the last few years.

The positive is that a portfolio approach, and leaning less on any one stock, has in this example delivered gains across the board. The Three Stock portfolio recovered from early losses as $BHP Group Ltd (BHP.AU)$ bounced back. The Super Ten remains in good shape despite $Disney (DIS.US)$’s recent share price troubles. So how did the Core and Satellite rise to the top? The performance table tells the story:

The four core ETFs have done their job. $Global X Physical Gold Structured (GOLD.AU)$ and US stocks are performing, and the diversified Australian stock ETFs are holding, protecting capital. It’s worth bearing in mind that the $Vanguard Australian Shares High Yld ETF (VHY.AU)$ will pay a distribution in October.

The kicker is the satellites. It’s the 40% gain in $Droneshield Ltd (DRO.AU)$ that gave the Core and Satellite portfolio the performance edge. It’s important to note that while this portfolio delivered just as planned, things don’t always go to plan in the market. But using a framework – spelling out goals, describing how investments are selected, monitoring, and sticking to investment rules – all give a better chance of success in the markets.