AutoWealth Plus+ Future 2050 portfolio
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AutoWealth Plus+ Future 2050 portfolio
In this article, I provide a detailed breakdown on Future 2050, one of the portfolios that AutoWealth is offering in their AutoWealth Plus+ product. You will also learn about all the Exchange Traded Funds (ETFs) that this portfolio will be investing in.
AutoWealth Plus+ charges an annual performance fee of 8% on the profits at the end of each calendar year, based on the portfolio value at the beginning and the end of the calendar year net of all fund deposits and withdrawals in USD terms throughout the calendar year.
I have also included a simulation of this portfolio based on a starting investment of $10,000 (minimum amount to start) and a monthly investment of $500 (minimum top-up amount) into the portfolio.
Please remember that the information presented is accurate as of the time of this post and past performance is not an indicator of future results.
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Portfolio Objective
The Future 2050 Portfolio is suitable for investors looking to capitalise on futuristics multidecade macro trends. The Future 2050 Portfolio aims to provide above-market returns through its allocation to technology & healthcare companies and some defensiveness against economic contraction & market volatility through its diversification in minimum volatility companies. Technology companies capitalise on futuristic multi-decade macro trends of technological transformation & disruptive technologies. Healthcare companies capitalise on futuristic multi-decade macro trends of ageing population, increasing longevity & substantial resource imbalances. Minimum volatility companies exhibit relatively lower volatility & drawdowns than comparable companies and are relatively more defensive against economic contraction & market volatility
Portfolio summary
- Min to Invest: $10,000
- Total Holdings: > 500 stocks
- Dividend Yield: 0.77%
- Annual Fees: 8% on profits
- Geographic: U.S.
- Risk Rating: High
- Overall Rating: 4 out of 5 stars
Annual performance fees on USD profits, no fee will be charged if there is no profit for the calendar year.
Asset allocation
- Vanguard Information Technology ETF (58.3%)
- iShares U.S. Healthcare Providers ETF (10.6%)
- iShares U.S. Medical Devices ETF (10.6%)
- SPDR S&P Biotech ETF (10.5%)
- iShares MSCI USA Min Vol Factor ETF (10%)
Risk statistics
- Annualized Volatility: 25.92%
- Maximum Temporary Drawdown: -32.42%
- Sharpe Ratio: 0.57
- Recommended Investment Horizon: > 5 years
In view of the higher portfolio volatility, this portfolio is only recommended for users with idle cash and unwavering holding power.
Portfolio exposure
Here’s a look on this portfolio’s asset allocation, market capitalization and sector exposures.
Asset allocation
Market capitalization
Sectors
Portfolio growth
Below is a simulation of AutoWealth Plus+ Future 2050 portfolio from 2012 to 2021, assuming a starting investment of $10,000 and a monthly investment of $500 into the portfolio.
Annual returns
Here are the annual returns and trailing returns based on the simulation above.
| Header | Annualized Return | Annualized Volatility | |||||
|---|---|---|---|---|---|---|---|
| Name | 3 Month | 1 year | 3 year | 5 year | Full | 3 year | 5 year |
| Future 2050 | 14.25% | 36.66% | 25.40% | 23.64% | 21.79% | 20.01% | 17.03% |
AutoWealth Plus+ performance-based fees
As an AutoWealth Plus+ portfolio, an annual performance fee of 8% on the profits in USD terms at the end of each calendar year, based on the portfolio value at the beginning and the end of the calendar year net of all fund deposits and withdrawals in USD terms throughout the calendar year. In the event the AutoWealth Plus+ portfolio is not in a profit position at the end of the calendar year, there will be no fees & charges for the calendar year. AutoWealth absorbs all brokerage fees, exchange clearing fees and custody fees irregardless.
Here’s what the annual performance fees look like based on the simulation above.
|
Year |
Return |
Portfolio Balance |
Annual Fees |
|---|---|---|---|
|
2012 |
16.36% |
$17,588 |
$138 |
|
2013 |
33.79% |
$29,904 |
$549 |
|
2014 |
22.45% |
$42,708 |
$592 |
|
2015 |
7.05% |
$51,569 |
$249 |
|
2016 |
9.08% |
$62,264 |
$408 |
|
2017 |
34.34% |
$88,587 |
$1,767 |
|
2018 |
2.60% |
$96,322 |
$151 |
|
2019 |
40.64% |
$139,160 |
$3,203 |
|
2020 |
36.66% |
$193,484 |
$4,202 |
| Cell | Cell |
Total |
$11,259 |
Portfolio breakdown
Here is a breakdown of all the ETFs in AutoWealth Plus+ Future 2050 portfolio.
Vanguard Information Technology ETF (VGT)
Total annual fund operating expenses: 0.10%
The Fund employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Index (IMI)/Information Technology 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector, as classified under the Global Industry Classification Standard (GICS).
The GICS information technology sector is made up of companies that offer software and information technology services as well as manufacturers and distributors of technology hardware and equipment such as communications equipment, cellular phones, computers and peripherals, electronic equipment and related instruments, and semiconductors.
The Fund attempts to replicate the target index by seeking to invest all, or substantially all, of its assets in the stocks that make up the Index, in order to hold each stock in approximately the same proportion as its weighting in the Index.
Top 10 holdings (as of 31 Dec 2020)
| Holdings | Weight (%) |
|---|---|
| Apple Inc. | 21.68% |
| Microsoft Corp | 15.28% |
| Visa Inc. Class A | 3.29% |
| NVIDIA Corp | 3.08% |
| Mastercard Inc. Class A | 3.05% |
| PayPal Holdings Inc. | 2.50% |
| Adobe Inc. | 2.29% |
| Intel Corp | 2.02% |
| Salesforce.com Inc. | 1.93% |
| Cisco Systems Inc. | 1.81% |
Click here to learn out more about Vanguard Information Technology ETF.
iShares U.S. Healthcare Providers ETF (IHF)
Total annual fund operating expenses: 0.42%
The Fund seeks to track the investment results of the Dow Jones U.S. Select Health Care Providers Index (the “Underlying Index”), which measures the performance of the healthcare providers sector of the U.S. equity market, as defined by S&P Dow Jones Indices LLC (the “Index Provider” or “SPDJI”).
The Underlying Index includes companies that are healthcare providers, such as owners and operators of health maintenance organizations, hospitals, clinics, dental and eye care facilities, nursing homes and rehabilitation and retirement centers.
The Underlying Index may include large-, mid- or small capitalization companies. As of March 31, 2020, a significant portion of the Underlying Index is represented by securities of companies in the healthcare industry or sector. The components of the Underlying Index arelikely to change over time.
Top 10 holdings (as of 21 Jan 2021)
| Holdings | Weight (%) |
|---|---|
| UnitedHealth Group Inc. | 21.66% |
| CVS Health Corp | 11.8% |
| Anthem Inc. | 9.4% |
| Teladoc Health Inc. | 5.03% |
| HCA Healthcare Inc. | 4.4% |
| Cigna Corp | 4.38% |
| Humana Inc. | 4.27% |
| Centene Corp | 4.16% |
| Laboratory Corporation of America | 3.7% |
| Quest Diagnostics Inc. | 2.8% |
Click here to learn out more about iShares U.S. Healthcare Providers ETF.
iShares U.S. Medical Devices ETF (IHI)
Total annual fund operating expenses: 0.42%
The Fund seeks to track the investment results of the Dow Jones U.S. Select Medical Equipment Index (the “Underlying Index”), which measures the performance of the medical equipment sector of the U.S. equity market, as defined by S&P Dow Jones Indices LLC (the “Index Provider” or “SPDJI”).
The Underlying Index includes medical equipment companies, including manufacturers and distributors of medical devices such as magnetic resonance imaging (MRI) scanners, prosthetics, pacemakers, Xray machines, and other nondisposable medical devices.
The Underlying Index may include large-, mid- or small capitalization companies. As of March 31, 2020, a significant portion of the Underlying Index is represented by securities of companies in the healthcare and medical equipment industries or sectors. The components of the Underlying Index are likely to change over time.
Top 10 holdings (as of 21 Jan 2021)
| Holdings | Weight (%) |
|---|---|
| Thermo Fisher Scientific Inc. | 13.26% |
| Abbott Laboratories | 13.07% |
| Medtronic plc | 10.36% |
| Danaher Corp | 7.9% |
| Becton, Dickinson | 4.55% |
| Intuitive Surgical Inc. | 4.42% |
| Stryker Corp | 4.31% |
| Edwards Lifesciences Corp | 4.02% |
| Boston Scientific Corp | 3.97% |
| IDEXX Laboratories Inc. | 3.13% |
Click here to learn out more about iShares U.S. Medical Devices ETF.
SPDR S&P Biotech ETF (XBI)
Total annual fund operating expenses: 0.35%
In seeking to track the performance of the S&P Biotechnology Select Industry Index (the “Index”), the Fund employs a sampling strategy, which means that the Fund is not required to purchase all of the securities represented in the Index. Instead, the Fund may purchase a subset of the securities in the Index in an effort to hold a portfolio of securities with generally the same risk and return characteristics of the Index. The quantity of holdings in the Fund will be based on a number of factors, including asset size of the Fund. Based on its analysis of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the investment adviser to the Fund, either may invest the Fund’s assets in a subset of securities in the Index or may invest the Fund’s assets in substantially all of the securities represented in the Index in approximately the same proportions as the Index, as determined by the Adviser to be in the best interest of the Fund in pursuing its objective. The Fund is classified as “diversified” under the Investment Company Act of 1940, as amended; however, the Fund may become “non-diversified” solely as a result of tracking the Index (e.g., changes in weightings of one or more component securities). When the Fund is non-diversified, it may invest a relatively high percentage of its assets in a limited number of issuers.
Under normal market conditions, the Fund generally invests substantially all, but at least 80%, of its total assets in the securitiescomprising the Index. In addition, in seeking to track the Index, the Fund may invest in equity securities that are not included in the Index, cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds(including money market funds advised by the Adviser). In seeking to track the Index, the Fund’s assets will generally be concentrated in an industry or group of industries to the extent that the Index concentrates in a particular industry or group ofindustries. Futures contracts (a type of derivative instrument) may be used by the Fund in seeking performance that corresponds to the Index and in managing cash flows.
Top 10 holdings (as of 21 Jan 2021)
| Holdings | Weight (%) |
|---|---|
| Ligand Pharmaceuticals Incorporated | 1.23% |
| Agios Pharmaceuticals Inc. | 1.20% |
| Twist Bioscience Corp | 1.16% |
| Intellia Therapeutics Inc. | 1.15% |
| Ionis Pharmaceuticals Inc. | 1.13% |
| SAGE Therapeutics Inc. | 1.13% |
| Vir Biotechnology Inc. | 1.12% |
| Clovis Oncology Inc. | 1.11% |
| Emergent BioSolutions Inc. | 1.11% |
| Alexion Pharmaceuticals Inc. | 1.10% |
Click here to learn out more about SPDR S&P Biotech ETF.
iShares MSCI USA Min Vol Factor ETF (USMV)
Total annual fund operating expenses: 0.15%
The Fund seeks to track the investment results of the MSCI USA Minimum Volatility (USD) Index (the “Underlying Index”), which has been developed by MSCI Inc. (the “Index Provider” or “MSCI”) to measure the performance of large and mid-capitalization equity securities listed on stock exchanges in the U.S. that, in the aggregate, have lower volatility relative to the large- and mid-cap U.S. equity market.
In constructing the Underlying Index, MSCI uses a rules-based methodology to select securities from the MSCI USA Index (the “Parent Index”), which is a capitalization-weighted index, and to determine the weightings of such securities in the Underlying Index.
Under the rules-based methodology, securities and weightings of the Underlying Index are established based on pre-established parameters and discretionary factors are not relied on.
Top 10 holdings (as of 21 Jan 2021)
| Holdings | Weight (%) |
|---|---|
| NextEra Energy Inc. | 1.62% |
| Vertex Pharmaceuticals Inc. | 1.62% |
| Johnson & Johnson | 1.61% |
| Eli Lilly | 1.57% |
| Microsoft Corp | 1.54% |
| Gilead Sciences Inc. | 1.5% |
| T-Mobile US Inc. | 1.5% |
| Newmont | 1.48% |
| Merck & Co. Inc. | 1.48% |
| Accenture plc Class A | 1.48% |
Click here to learn out more about iShares MSCI USA Min Vol Factor ETF.
What do you think about this portfolio?
What do you like or dislike about this portfolio? Share your opinion with me in the comment section.
