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Portfolio Update – Q4 2020

Due to the Corona-related stress at work I was a bit swamped in the last six months. I had to skip a written up Q3 2020 portfolio update. The last review of our holdings was in Q2 2020

I mentioned in my last quarterly update that I have decided to hold back some funds and not invest in any ETF’s for the time being. It seemed at the time that (and still does) that the stock markets especially the S&P 500 have been too bullish and nearing a bubble. 

This becomes especially evident, when looking at the historical P/E Ratio for the S&P 500:

https://www.multpl.com/s-p-500-pe-ratio

Do you see the Dot-Com bubble of 2000 and the Financial Crisis of 2009 on the chart? I don’t want to paint a gloomy picture, but this looks like it’s going to burst sooner or later.

3a Pillar Accounts

The 3a pillar investments are doing well overall, mainly due to the overly bullish markets.

I thought about adjusting the strategy to reduce my stock exposure, but I feel the portfolio is well diversified and should be left alone. Additionally the portfolio with VIAC rebalances monthly, which should prevent the portfolio of moving into a too stock heavy direction (portfolio drift).

I’d like to stick with it and keep adding cash to it on a regular basis.

NameEnd of Q2 2020End of Q4 2020 Change
3a accounts79’237 CHF94’212 CHF+18.9%

I maxed out the yearly allowed 3a pillar contribution, which was the main driver for the growth:

Contribution: +6’826 CHF
Portfolio growth: 1o.2%

ETF Holdings

We started the year with big lofty goals of adding up to 20’000 CHF to this account, since we are still in the “build-up” phase. But this optimistic goal was crossed by the realization, that owning a house comes with some (sometimes unforeseen) costs…

Due to a roof renovation, I was forced to remove some funds from the ETF holdings. It worked out ok – I sold the S&P 500 and MSCI World Index holdings to pay for the roof insulation.

I am still holding on to the 85 shares Oil ETF (IOGP) shares that I bought when oil prices dropped significantly in Q2 2020. I also added some iShares EuroStoxx Dividend UCITS (IDVY), for some additional dividend income.

TickerName# of UnitsEnd of Q2 2020# of UnitsEnd of Q4 2020Change
SWDA iShare Core MSCI World USD Acc 18310’861$00$
SPXS S&P 500 Source ETF 73’903$00$
IOGPiShare Oil & Gas85806$85918$13.9%
IDVYiShares EuroStoxx Dividend2003542 EUR
Cash2’407 EUR7’512 EUR
TOTAL16’268 EUR11’809 EUR-27%

Since I had to remove some funds, the ETF portfolio shrunk as expected.

Summary

The changes from Q2 to Q4 2020 were mainly due to shifting money from our savings account to the ETF holdings.

NameEnd of Q2 2020End of Q4 2020Change from
Q2-Q4
3a accounts 79’237 CHF94’212 CHF+19%
ETF holdings17’348 CHF12’744 CHF-27%
TOTAL96’585 CHF106’956 CHF+11%

How did you do in Q4 2020? Do you see a bubble forming?

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