Do you own just 5% of anything?

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UniversityEmployee9
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Do you own just 5% of anything?

Post by UniversityEmployee9 » Sun Jul 01, 2018 9:58 pm

Like the title says: what [asset or fund] do you own that makes up less than 5% of your portfolio and why?

For this discussion let's avoid mentioning stocks of individual companies (boring) or funds that happen to make up less than 5% of your portfolio that are nearly identical to other funds you own (i.e., don't list two nearly identical bond funds that make up 5% each, etc).

I'm mostly interested to see if anyone on BH slices and dices their holdings this thin.

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Re: Do you own just 5% of anything?

Post by boglerdude » Sun Jul 01, 2018 10:10 pm

Commodities, fallen angels, GNMA, Health care, Intl small value. Might take gold from 10 to 5. Might buy US small value if it comes down.

Because if I need money, ill sell whats high.
Last edited by boglerdude on Sun Jul 01, 2018 10:16 pm, edited 1 time in total.

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Re: Do you own just 5% of anything?

Post by triceratop » Sun Jul 01, 2018 10:16 pm

EM Value is about 5% of my overall portfolio.
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Re: Do you own just 5% of anything?

Post by grabiner » Sun Jul 01, 2018 10:29 pm

I have 11 asset classes (US LG/LV/SG/SV, foreign DMLg/EMLg/DMSm/EMSm, REIT US/foreign, and bonds), with 5% my lowest target allocation to any class (both REIT classes, US LG/SG, and EM small). The only target I have ever had below 5% was a full asset class. not a subclass, as I was 0% bonds in 2014 and am increasing that by 2% per year.
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delamer
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Re: Do you own just 5% of anything?

Post by delamer » Sun Jul 01, 2018 10:31 pm

I use a variation of the Six Ways From Sunday Couch Potato Portfolio developed by Scott Burns.

But instead of weighting each of the six sectors equally, I only keep 5% each in the REIT & Energy sectors (and overweight other sectors, obviously).

ralph124cf
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Re: Do you own just 5% of anything?

Post by ralph124cf » Sun Jul 01, 2018 10:41 pm

Gold, small EM, and microcap.

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Re: Do you own just 5% of anything?

Post by Quaestner » Sun Jul 01, 2018 10:44 pm

Precious metals and precious metals equities make up 3 or 4 percent of my portfolio. Why not more? Because I'd rather own pieces of businesses not unproductive metal. Why not zero? Some part of me thinks that it might come in handy - even if I hope it won't.

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Re: Do you own just 5% of anything?

Post by Horsefly » Sun Jul 01, 2018 10:45 pm

I'm sure this isn't how the question was intended, but...

My only individual stock position is in AMZN. While it is a pretty big dollar amount, it is less than 5% of my overall investments. However, I also own quite a bit of the S&P 500 (SPY and IVV), of which AMZN is weighted at just around 3%. I also have a couple of actively managed funds, which I'm too lazy to look at but suspect also have a big position in Amazon. So based on that, I think I do have 5% or more of my portfolio in Amazon.

I think most people don't know just how exposed they are to a single company (especially FANG). That makes your question a bit more complicated than you intended it.

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Re: Do you own just 5% of anything?

Post by White Coat Investor » Sun Jul 01, 2018 10:52 pm

UniversityEmployee9 wrote:
Sun Jul 01, 2018 9:58 pm
Like the title says: what [asset or fund] do you own that makes up less than 5% of your portfolio and why?

For this discussion let's avoid mentioning stocks of individual companies (boring) or funds that happen to make up less than 5% of your portfolio that are nearly identical to other funds you own (i.e., don't list two nearly identical bond funds that make up 5% each, etc).

I'm mostly interested to see if anyone on BH slices and dices their holdings this thin.
5% is my smallest slice. Small international, real estate debt investments, and REITs are all 5% in my portfolio. My biggest slices are TSM at 25% and TISM at 15%.
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Re: Do you own just 5% of anything?

Post by WildBill » Sun Jul 01, 2018 10:57 pm

Howdy

AMAT is about 7% of my portfolio. I did not intend for it to be, it just happened because I bought it at a good time and it has appreciated over a number of years. Reducing it would entail significant capital gains taxes.

Sometimes stuff just happens.

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unclescrooge
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Re: Do you own just 5% of anything?

Post by unclescrooge » Sun Jul 01, 2018 11:14 pm

Gold, gold miners and commodity fund make up 6%.

Chinese tech fund make up another 5%.

fennewaldaj
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Re: Do you own just 5% of anything?

Post by fennewaldaj » Sun Jul 01, 2018 11:23 pm

I slice my equities in 8ths in both international and US. Some things get 1/8 and somethings get multiple 8ths. The 1/8th allocations are 4.5%. So I have Large value, mid value, mid blend, and small blend as 4.5% (large blend and small value are 9%) for US. For international EM value and SCV are both 4.5% allocations (with small at 9% and total market 18%). I also slice my bonds and have a 3.3% each allocation to junk bonds and foreign bonds and a 4.4 % allocation to TIPS with the rest in total bond type funds.

Nate79
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Re: Do you own just 5% of anything?

Post by Nate79 » Sun Jul 01, 2018 11:42 pm

Yes, a few odds and ends. Megacorp employer stock, REIT(in Fundrise), and gold. I also have a few slices of different bond holdings including short term corporate bond fund and individual short term treasuries.

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Re: Do you own just 5% of anything?

Post by 123 » Sun Jul 01, 2018 11:50 pm

I've got about 1 - 2% in an ishares country specific equity ETF that reflects my overseas country heritage. I treat it as part of my international allocation. It's performance seems mostly similar to VXUS. I keep it just for genral interest and entertainment. I didn't initially even know such an ETF existed until I happened to read about it in a posting here at bogelheads.
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Re: Do you own just 5% of anything?

Post by All Seasons » Sun Jul 01, 2018 11:51 pm

Yes and no.

I hold 25% in stocks, bonds, cash, and gold respectively.

However, within that allocation I believe that are some subsets that fit that 5% description. I believe international developed stock (ex-Canada and US) is 5% of the total portfolio or thereabouts for instance.
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Re: Do you own just 5% of anything?

Post by le_sacre » Mon Jul 02, 2018 12:33 am

5% in FSRVX (REIT)

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Re: Do you own just 5% of anything?

Post by ivk5 » Mon Jul 02, 2018 1:40 am

I Bonds. Just because of accumulation limits.

(Arguably combinable with rest of my fixed income allocation, at 10% plus large EF. But sufficiently distinct characteristics that I count it as a separate subclass.)

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Re: Do you own just 5% of anything?

Post by HongKonger » Mon Jul 02, 2018 2:02 am

US SCV - 5%
US Mega Cap Growth - 5%
All World Ex US SCV - 5%

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Re: Do you own just 5% of anything?

Post by UpperNwGuy » Mon Jul 02, 2018 4:20 am

No, I don’t.

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welderwannabe
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Re: Do you own just 5% of anything?

Post by welderwannabe » Mon Jul 02, 2018 4:36 am

Cash.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

mmcmonster
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Re: Do you own just 5% of anything?

Post by mmcmonster » Mon Jul 02, 2018 5:02 am

I own 5% of Total International. Because I'm not convinced that I need international, but it's nice to have a little so I'm not totally missing out on the party.

I own 1% of Vanguard Health Care ETF. It used to be more but I decided to stop buying it and no longer consider part of my asset allocation. BUT I don't plan to sell my shares. So my goal is to have 0% in it but don't plan to reach that number until I'm selling assets in retirement.

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Re: Do you own just 5% of anything?

Post by z3r0c00l » Mon Jul 02, 2018 6:24 am

Russell 2000 small cap, 5% of 401K which is less than 2.5% of total. Forced to combine a mix of market cap specific funds to approximate total US stock market and international. EM at 10% of 401K, for example.

dcabler
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Re: Do you own just 5% of anything?

Post by dcabler » Mon Jul 02, 2018 6:52 am

Yes, 5% each of Emerging Market and Int'l small cap...

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Re: Do you own just 5% of anything?

Post by MikeG62 » Mon Jul 02, 2018 6:53 am

UniversityEmployee9 wrote:
Sun Jul 01, 2018 9:58 pm

...I'm mostly interested to see if anyone on BH slices and dices their holdings this thin.
Emerging Markets
Foreign Developed Small/Mid-Cap
Domestic MicroCap

Does this small allocations make a huge difference? Probably not really. However, assets are in a taxable account with considerable capital gains so no incentive to do anything with them.
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Tamarind
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Re: Do you own just 5% of anything?

Post by Tamarind » Mon Jul 02, 2018 6:54 am

I don't have any holdings making up 5% or less. I used to have Vanguard's REIT index at 6% but dropped it when my wife and I married and agreed on a joint AA.

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Re: Do you own just 5% of anything?

Post by The Wizard » Mon Jul 02, 2018 7:05 am

I have a three-segment overall portfolio:
1) my large 403(b)
2) my moderate Roth IRA
3) my smallish taxable account

So even though I have 100% total stock market VTSAX in my taxable account, it's less than 5% of my total portfolio...
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Re: Do you own just 5% of anything?

Post by vtBob » Mon Jul 02, 2018 7:23 am

I own some canandian pot stocks in my fun money account. I also own some crypto.

All of the above are far and away my worst investments. Meh.

I’m ok with it as they are my moonshots.

Skyccord
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Re: Do you own just 5% of anything?

Post by Skyccord » Mon Jul 02, 2018 7:27 am

Crypto... don't judge me...

diy60
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Re: Do you own just 5% of anything?

Post by diy60 » Mon Jul 02, 2018 7:41 am

The only positions less than 5% I own are in my playpen, which itself is <5% of my portfolio. Within that playpen I have pharma,downstream oil, and medical device stocks. The other 95% of my portfolio is comprised of index funds and US Treasuries.
Last edited by diy60 on Mon Jul 02, 2018 7:43 am, edited 1 time in total.

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Re: Do you own just 5% of anything?

Post by Oak&Elm » Mon Jul 02, 2018 7:43 am

Yep, MiMedx (MDXG) currently at $6/share. When it goes to $40/share I'm retiring and buying a new Ford F-150 and fishing boat. This is less than 1% of my pile, I just want to take one long shot, the other 99% is in my 3 fund basic smart money portfolio.

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Re: Do you own just 5% of anything?

Post by Stinky » Mon Jul 02, 2018 7:44 am

Vanguard REIT fund is 5%. Just dabbling.
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Re: Do you own just 5% of anything?

Post by SchruteB&B » Mon Jul 02, 2018 8:10 am

Own TIPS fund in a cash balance plan that amounts to 2% of overall portfolio. Would never have bought it but have no control over CBP holdings (which are otherwise good). Can roll over plan to 401(k) this year and will allocate that 2% elsewhere.

mbasherp
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Re: Do you own just 5% of anything?

Post by mbasherp » Mon Jul 02, 2018 8:44 am

My asset allocation includes 5% in bonds and 5% in precious metals. Early/mid 30's, 90% equity otherwise.

livesoft
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Re: Do you own just 5% of anything?

Post by livesoft » Mon Jul 02, 2018 8:47 am

Yes, I have some new ideas that I am trying to grow above 5%. The reality is that one starts at 0% and works their way up.

But I will always have less than 5% in cash and closer to 0% in cash.
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Re: Do you own just 5% of anything?

Post by racy » Mon Jul 02, 2018 9:01 am

Vanguard REITs, SmCap Index, Healthcare sector all at target 5%.
I don't know if Lazy Portfolios are BHish, but I note about half of them have 5-6% slices: https://www.marketwatch.com/lazyportfol ... er-starter

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Re: Do you own just 5% of anything?

Post by delamer » Mon Jul 02, 2018 11:09 am

racy wrote:
Mon Jul 02, 2018 9:01 am
Vanguard REITs, SmCap Index, Healthcare sector all at target 5%.
I don't know if Lazy Portfolios are BHish, but I note about half of them have 5-6% slices: https://www.marketwatch.com/lazyportfol ... er-starter

Of course they are — the basic 3-fund buy-and-hold allocation is a lazy portfolio.

There is a whole section in the wiki about lazy portfolios.

UniversityEmployee9
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Re: Do you own just 5% of anything?

Post by UniversityEmployee9 » Mon Jul 02, 2018 11:17 am

livesoft wrote:
Mon Jul 02, 2018 8:47 am
Yes, I have some new ideas that I am trying to grow above 5%. The reality is that one starts at 0% and works their way up.

But I will always have less than 5% in cash and closer to 0% in cash.
What are your new ideas?

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Re: Do you own just 5% of anything?

Post by livesoft » Mon Jul 02, 2018 11:39 am

UniversityEmployee9 wrote:
Mon Jul 02, 2018 11:17 am
What are your new ideas?
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Mors
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Re: Do you own just 5% of anything?

Post by Mors » Mon Jul 02, 2018 11:50 am

I could see myself holding 5% of an EM bond fund.

CarpeDiem22
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Re: Do you own just 5% of anything?

Post by CarpeDiem22 » Mon Jul 02, 2018 11:57 am

1.2% in Gold. It's a purchase from 5 years ago when didn't know much about finance.

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Re: Do you own just 5% of anything?

Post by SGM » Mon Jul 02, 2018 1:37 pm

Yes. I still have small percentages of individual stock with large capital gains that I have been nibbling away at for the last 10 years or so. Most of my portfolio is in index funds, but now those are racking up big capital gains too.

I don't think it is that bad a problem to have. This year I have sold a few individual stocks with 450% gains. I have just been too lucky. Earlier I thought this would be the year that I would minimize capital gains tax, but it hasn't happened. There is always hope for 2019. :D

goonie
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Re: Do you own just 5% of anything?

Post by goonie » Mon Jul 02, 2018 1:50 pm

6% of my investment portfolio is in the Vanguard Total International Bond Index fund. That's the lowest. Next lowest is 14% in the Vanguard Total Bond Market Index fund. These 2 combined make up my bond holdings (20% of my portfolio).

Njm8845
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Re: Do you own just 5% of anything?

Post by Njm8845 » Mon Jul 02, 2018 2:25 pm

mmcmonster wrote:
Mon Jul 02, 2018 5:02 am
I own 5% of Total International. Because I'm not convinced that I need international, but it's nice to have a little so I'm not totally missing out on the party.
Same here. 3% of my portfolio is International Growth.

GibsonL6s
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Re: Do you own just 5% of anything?

Post by GibsonL6s » Mon Jul 02, 2018 2:32 pm

Only individual stocks left over from the old days and a couple of new names I bought for fun. I only hold broad index funds, individual Treasuries and some tax free muni funds. I actually could see a time when I have just a broad US stock market fund and individual Treasuries in essence a one "fund" portfolio.

hafjell
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Re: Do you own just 5% of anything?

Post by hafjell » Mon Jul 02, 2018 2:53 pm

REIT = 5%

AlwaysaQ
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Re: Do you own just 5% of anything?

Post by AlwaysaQ » Mon Jul 02, 2018 2:58 pm

International stock is less than 5% of my portfolio. 4 individual stocks make up less than 2% and I should sell at least 2 of them.

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Re: Do you own just 5% of anything?

Post by Meg77 » Mon Jul 02, 2018 3:18 pm

Of my total investment portfolio, I hold the following: 2% cash, 2% tech start up accelerator, 5% bonds (17% of which is international).

The remaining portion is 56% investment real estate and 33% stocks (one quarter of which is international).
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cj2018
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Re: Do you own just 5% of anything?

Post by cj2018 » Mon Jul 02, 2018 3:20 pm

For those who have gold in their AA, what's the vehicle you are holding? (physical bullion, coins, or financial securities like futures or stocks in previous metal companies)? Thanks.

bikechuck
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Re: Do you own just 5% of anything?

Post by bikechuck » Mon Jul 02, 2018 3:57 pm

Approx 5% of our portfolio is invested in TIAA Real Estate. We own it for diversification and this year in particular it is doing its job as the last time I looked it was up 5.2% on an annualized basis. No too shabby given this year's returns in my stock and bond index funds.

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serbeer
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Re: Do you own just 5% of anything?

Post by serbeer » Mon Jul 02, 2018 4:07 pm

Yes, of REIT and Emerging markets, 5% each.

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