Creating a sustainable stock portfolio in the 21st century

Since the start of the 21st century, many technological innovations have taken place. We should not just look at advances in Internet technology, which resulted in lower transaction fees, among others. There have also been drastic changes in the asset types that are available. A good example is the inception and rise of cryptocurrency through the emergence of Bitcoin. Many people have jumped the bandwagon, and many more will follow. Naturally, a healthy and balanced portfolio that looks into the future is also considering those assets. In this article, we will look at a strong diversified portfolio and learn how to track it through a stocks tracker.

A strong foundation: index funds

While this might be conservative, it is still the backbone of the majority of portfolios. Strong index funds that have a track record of realized returns are always a good idea. Think about major indexes such as the S&P500 and the MSCi World. These indexes typically grow over time with a strong growth rate and reflect the companies that are trending at any point in time. You can buy Exchange Traded Funds (ETFs) that mimic these indexes and allocate a strong foundation of your portfolio to it. This helps you to have a relatively safe foundation.

Go for growth

When you have allocated a significant (>50%) portion of your portfolio to an index fund (or multiple), you can start to look into more high-risk high return stocks. Good examples are trending technology stocks, which are currently active in the Software as a Service (SaaS) space. If you have limited experience with technology, it is best to keep track of the news on emerging technologies and select key players you believe in. Note that this is riskier than a broad index fund, and should be approached carefully. These stocks are typically for the short to mid-term, depending on your risk appetite. You can add these stocks to a stocks tracker to see real-time news and stock price information flowing in.

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Cryptocurrencies

Naturally, you should also look at cryptocurrencies. The safest way to approach this is by looking at the top x coins that are listed. Invest in these and keep them for a longer period. You do not need a separate crypto tracker, many stocks tracker applications can also provide you with real-time crypto information.

Using a stocks tracker

Now that you have three baskets of assets, you can combine them into a tracker application. This allows you to have a holistic overview of your portfolio, but there is more to it. For example, you can create clusters of stocks and group them into a ‘portfolio’. This allows you to see the progress of your stocks and crypto in dedicated groups. You can set certain KPIs for yourself, and track your assets using those. This allows you to better steer your portfolio, and adjust where needed.

Note that this is a non-exhaustive list of asset classes you can consider. Other options should be part of a healthy portfolio. For example, real estate has always been a steady return but comes with more effort and responsibility. This, however, can be minimized by investing in Real Estate Investment Trusts (REITs) instead of individual assets.

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