Portfolio construction & instruments
Guiding Principles
The portfolio above is designed to be simple, diversified, and low-cost, while reflecting my current key investment convictions.
- Instruments: liquid ETFs with low management fees
- Risk allocation: 60% equities / 40% fixed income & other diversification (see 60/40 smart benchmarks)
- Approximately 60% of the regional exposure is invested in major indices such as the S&P 500 and SE 600
Investment Thesis:
- Equities: neutral to slightly overweight; 5% cash reserve to capitalize on potential pullbacks
- Regional Allocation: overweight emerging markets, Asia, and China
- Bonds: underweight + inflation protection
- Commodities: significantly overweight (gold, silver, industrial metals, and uranium)
- Themes: technology (AI, robotics, grid, battery). However, concentration risk in the tech giants is balanced by the Equal Weight index, value style, small caps, and Min Vol.
To follow in real time
This portfolio is available free of charge for illustrative purposes only (*) on PortfolioLab under the name 60/40 BABInv*01
Last update (10/26/26):
- Arbitrage: Marginal profit-taking on the S&P 500 (new high) and reinvestment in the battery sector, which has corrected significantly.
- Arbitrage in euro-denominated bonds to extend duration (following the sharp rise in long-term rates) by reducing exposure to euro corporate bonds in favor of inflation-linked bonds (longer durations)
(*) This does not constitute investment advice. The instruments used may result in significant capital losses.