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Master portfolio – for child
This section examines master investment portfolios for investors looking for a portfolio for a child.
Investing for kids should typically have a long term outlook; the ‘Adventurous’ portfolios will often be appropriate. That being said, putting money away ‘for university’ is less long term than a 30 year old putting money away ‘for retirement’.
The psychology with children’s portfolios will often be a little different than adults psychology’. Younger generations are typically more globally minded, more likely to value sustainability, and more comfortable with technology. This ‘child’s portfolio’ reflects these assumptions.
This investment portfolio contains 5 ETFs:
|ETF||Weighting||Annual yield, %||Annual expenses, %|
|VUKE: Vanguard FTSE-100 ETF||15%||5%||0.09%|
|SUUS: iShares MSCI USA SRI ETF||35%||2%||0.20%|
|CNDX: iShares NASDAQ-100 ETF||15%||0%||0.33%|
|VFEM: Vanguard FTSE Emerging Markets Equities ETF||15%||2.9%||0.22%|
|AGGG: iShares Global Aggregate Bonds ETF||20%||1.6%||0.10%|
This portfolio has 80% equities, split 50:15:15 USA: Emerging markets:UK. The USA equities are mostly those in MSCI’s Sustainable index, with the balance in the tech/growth-orientated NASDAQ-100.
The bond portion of this master portfolio is invested globally. The normal guidance of keeping the fixed income exposure in the country you live in feels like limiting a child’s horizons.