Full transcript
0:00Hey guys, welcome to a new video. So, a
0:02few days ago, I got this comment on one
0:05of my videos and I really like this
0:09comment and I want to address it. So, um
0:11I'll go through what this comment is.
0:13So, it's from at 12 Urban Wildland.
0:16Thank you very much for your comment. I
0:18appreciate it. Good video. Thank you
0:20very much. Thank you. Thank you very
0:21much. How about an income portfolio you
0:24could leave your family set and forget
0:26after I go to the stock market in the
0:28sky? And I really like this question
0:31because I've actually thought about this
0:32myself. Like when I think about my
0:35strategy, it's quite active. Like I know
0:37it's yield and chill is the the concept
0:40and that we're chilling in neutrality uh
0:42and greed and and extreme greed, but
0:44when we're in fear and extreme fear,
0:46we're being quite active. We're buying
0:48we're buying these stock. We're buying
0:49these ETFs. We're buying them at lows.
0:52So if I was to I know this is a bit
0:54morbid but like you know pass away and
0:58leave a portfolio for my family what
1:00would it be so that they don't have to
1:02touch it. It's set and forget. They
1:03don't have to manage it. They don't have
1:05to worry about it. What would it be
1:07where they can just not think about it
1:09not worry about it? Hold it basically
1:11forever and they don't have to think
1:14about anything. They don't have to worry
1:15about it like I said. So that's what I'm
1:17going to talk about today. I'm going to
1:18go through those that concept I guess
1:21and go through the portfolio that I've
1:25created based on this a set and forget
1:28family orientated portfolio that no one
1:30really has to manage or worry about.
1:32Okay. So, of course, this is not
1:34financial advice at all. This is uh this
1:37channel is purely based on my thoughts
1:38as navigating my own personal investment
1:40journey. Please, please, please always
1:42do your own research. So, thank you very
1:45much for this comment at 12 urban
1:48wildland. It's very much appreciated and
1:50I really like this question. So, let's
1:53get into it. So, this is the income
1:56portfolio. I would personally be very
1:59happy to leave my family. Notice this is
2:02income. It's not growth. I would
2:04probably have a growth portfolio on the
2:06side as well, but I'd also be very happy
2:08just to kind of have this as an income
2:10portfolio because it's going to be as it
2:12shows here, income, growth, and
2:15diversification. It's going to generate
2:17some income, but it's going to be built
2:18to last decades and grow as well, not
2:21not really have any navos. We'll talk
2:24about that as we go. All right. So, what
2:27does set and forget actually mean? Well,
2:29it means sustainable income. Generate
2:31income through all market cycles. So, if
2:33we go into a bare market, this needs to
2:35still be able to generate income,
2:37long-term growth. So, you probably hear
2:39my kids in the background going crazy.
2:41Long-term growth, participate in global
2:43growth over time. So, as I said, I don't
2:46just want it to be like paying crazy
2:48amounts of yield and distribution and
2:50for there to be worries and concerns
2:54about my capital getting eroded away. It
2:56needs to have good growth. We're not
2:58going to focus on huge yields and distri
3:01distributions. We're going to be focused
3:03on more conservative yields and
3:05distributions, but also good growth as
3:07well. So true diversification, different
3:10markets and sectors and asset classes.
3:13Yes, diversification is key because
3:15obviously if we go into a bare market,
3:16if you know, Bitcoin is doing well, but
3:18something else isn't doing well, we we
3:20just need diversification. So always
3:21making a bit of income and growing uh
3:23our whole portfolio as well. Minimal
3:25management, no con when it says minimal
3:27management, it should really say no
3:29management. I don't want the person that
3:32I leave or my family that I leave this
3:33to to have to manage this in any way. It
3:35is literally set and forget. You don't
3:37have to worry about it. You don't have
3:39to manage it. You're just going to be
3:40making income and the portfolio should
3:42be growing over a long-term time frame.
3:46All right? Simple to own, easy for
3:48anyone to understand and maintain. They
3:50might not understand it that well.
3:52Actually, if you talk to my wife, she
3:55doesn't really really get this stuff
3:56that much. So, she might not understand
3:58it very well, but I'd be able to explain
4:01it in a way where she doesn't have to
4:02really understand it that much anyway.
4:04She doesn't have to manage it or change
4:05things a lot or buy here and sell there.
4:07She doesn't have to do any of that. All
4:09right. So, maximum yield is not the
4:10goal. Income today, growth for tomorrow
4:12built to last. Right. So, what is it my
4:16set? And I'm just revealing all straight
4:18off the bat. We have got Oval. These
4:22this is my core two. So, I've got two
4:24core income ETFs. I've gone for Oval 30%
4:28allocation 10.41% distribution rate. It
4:30is of course the S&P 500 core US
4:33equities from liquid strategies. Love
4:35this ETF. I've talked about it a lot in
4:37my previous videos. It's got broadbased
4:41kind of market exposure if you like with
4:43large uh cap uh equity exposure. Uh it's
4:47got a nice distribution rate of 10.41%.
4:50It's not super high. It's not like silly
4:52low. Um, and also they're just crushing
4:54it with OVL, OVs, and OVF. Uh, the OVL
4:59Oval is beating the S&P 500 still in
5:02terms of total returns, which is
5:03absolutely insane. They've what they've
5:06done with it is
5:09supremely impressive considering it's
5:11been out for like six years, I think.
5:14So, the second one is GPIQ. This is the
5:16Goldman Sachs NASDAQ 100 income ETF. Uh,
5:20it's such a solid player. I haven't gone
5:22for TDAC. I've gone for something with a
5:24lower distribution rate because I want
5:26more growth. I want to be able to
5:28preserve the capital a bit better. If we
5:30go into a bare market, I just want to be
5:32able to make sure that my wife, my
5:34family don't have to touch it, they're
5:36going to be able to ride out the bare
5:37market with this. Uh it will still
5:40they'll still get some growth from it
5:41and they'll still get yield distribution
5:43rate of around 10 a.5%. So that is my
5:46core 2 50%. Then I've gone for ovs. So
5:49this is of course small caps from the
5:51same company as OVL liquid strategies.
5:54It is of course small caps. You're
5:56getting a similar very similar. Look at
5:58all these distribution rates. Very
5:59similar. That's because they're
6:00manageable. You're not going to see a
6:02lot of nav erosion from these because
6:04the yield is lower. They've generally
6:06got good total return performance but
6:08also good price change performance.
6:09That's why we want that growth as well
6:11as the the yield that we're getting from
6:13these income ETFs. So we're getting some
6:15small cap exposure. We got some NASDAQ
6:17100 and we've got some S&P 500
6:19essentially. Now, we want to get some
6:21global international exposure and that's
6:24what NIH I I call it NIH, NIH high,
6:27whatever you want to call it, NIH, it's
6:30from NEOS, uh it is their international
6:32equities income ETF. Uh the reason I
6:35went for it as opposed to OVF, it's just
6:39got a bit more broader kind of
6:40international uh exposure and yeah, I
6:44like it. You could for for this to be
6:46honest you could go with OVF. You could
6:48just do OVL, OBS, OVF, GPIQ. That's your
6:52kind of core four if you like, but I
6:55went with NIH for a little bit of uh
6:57something different here as I think it
6:59will do extremely well in the long run.
7:01Now, Socky, I've gone for I didn't go
7:03for Chippy because I want something with
7:05better growth. So, when you're looking
7:06at chippy versus you, you generally go
7:08with soy uh if you want exposure to
7:11semiconductors. And I personally believe
7:13that semiconductors
7:15will continue to do well over the long
7:18term. Uh Nvidia isn't going anywhere.
7:21Tech and AI and all this growth into
7:26um just this AI buildout is it's not
7:29going to stop anytime soon. It's not
7:30going to stop. You know, we're not
7:31unless things get really bad for the
7:33world. But from a business point of
7:36view, semis are not going anywhere. So I
7:38think it's good to have some exposure to
7:40that. So, I've got 10% exposure to
7:42semiconductors through Socky because it
7:44gives us more growth, but also um a
7:47distribution rate of 12%. Gold, I really
7:50like to have some exposure to gold. Kind
7:52of something different to stocks. Um
7:55obviously, it's a bit more of a um what
7:58do you call it? Debasement trade. So,
8:01uh, you know, if the US if a lot of cash
8:05is getting printed, um, then and there's
8:08a lot of inflation, then gold usually
8:10reacts pretty well to that because it's
8:11kind of the debasement trade. You know,
8:14it's a hard asset along with Bitcoin.
8:16So, I've got a bit of Bitcoin in here as
8:17well with 5%. So, I've got gold, KGLD at
8:2010%. Uh, I've got MLPI because I think
8:23energy infrastructure going forward is
8:26very, very important. I think nothing's
8:28going to happen to that. Uh I'm very
8:30happy to hold that for the long term for
8:33my family to hold that for the long
8:34term. So just a small exposure to that
8:375% small exposure to Bitcoin. I didn't
8:40go for something like Bloxs which is a
8:42lot more volatile. It's got all sorts of
8:44stocks within it. I went for BTCI. It's
8:47pure Bitcoin exposure and yeah it will
8:50get hurt a little bit in bare markets
8:52like it's getting hurt now but over the
8:54long run I believe in Bitcoin. Now, if
8:56you don't believe in Bitcoin, you don't
8:57think it's you think it's a complete
8:58Ponzi scheme, thinks it's crap, you
9:00think it's uh just going to go to crap,
9:04basically it's going to go to zero, then
9:06don't include it. But I personally think
9:09that Bitcoin will one day be at $1
9:12million. So, I am happy to put it in my
9:16family's portfolio with a small
9:18allocation of 5%. I still don't think
9:20that's very risky. I think that's, you
9:22know, if it was me, I'd be putting way
9:24more in blocks and but this isn't for
9:26me. This is for my family. They
9:27shouldn't have to worry about it. So,
9:29I'm actually very happy with this
9:30diversification with these allocations
9:33and what we've got exposure to. We've
9:35got the S&P 500 essentially, NASDAQ 100,
9:38small cap exposure, international and
9:39foreign exposure, semis, gold, energy,
9:42infrastructure, Bitcoin. I like it.
9:44Those eight ETFs.
9:47Let me know what you think about this
9:48mix, this blend, this diversification.
9:51Do you like these ETFs? What would you
9:53change? What would you put into your
9:55family's set and forget portfolio? If
9:58you were to whisk away into the clouds
10:01one day, what would you leave them as
10:03your ETFs? A bit morbid, I know, but I
10:05think it's I think it's really good uh
10:07kind of talking point and something that
10:08I do actually consider myself. So, I
10:10think it's cool to go through. All
10:12right, so why these eight ETFs? Well,
10:14your course. So, I've got 50% in my core
10:17two, Oval and GPIQ. It's basically S&P
10:21500 and a NASDAQ 100. Um, now why I like
10:24these two is if we I'm just going to
10:26jump to the charts quickly
10:29and you will see that even through a
10:33bare market, Oval is up in the last 6
10:36years. 203%
10:38total returns GPIQ. So, you can see that
10:43doesn't matter what happens. will do
10:44these dips. You can see that dip. Uh
10:46that was the tariffs down here in uh
10:49April 2025. Doesn't matter. Just rides
10:51it out. Rides it out. Look at how much
10:54more volatile Oval is compared to GPIQ.
10:57Unless that's not exactly to scale, but
11:00um yeah, you can see up 203% in 6 years.
11:0390 up 96 almost 100% for GPIQ in what's
11:08that 2 and a half 3 years almost. And
11:10then if we change that to price change,
11:12this is how we know we're going to get
11:14growth as well. Overall, even through
11:16that like bare market when nothing
11:18happened for like almost 2 years, went
11:21down and didn't really recover until
11:232024 from 2020, end of 2021. Um, still
11:29up 130% in price change alone. That is
11:32incredible. Uh, GPIQ up 45% in price
11:36change alone. So, we're going to get
11:38growth from this. This is 50% of the
11:40portfolio. 30% in Oval, 20% in GPIQ.
11:44We're going to get growth out of this as
11:46long as you know my family, my wife
11:49doesn't start selling things here and
11:50there. They just leave it. Leave it for
11:52the long term. You wait a decade. This
11:54will definitely be growing. Um, so
11:57that's why I like that as the kind of
11:59core two. Then we got our growth and
12:00diversifiers. So we got small caps, ovs,
12:02we got kneeh high, we got uh
12:04international socky semis, we got gold,
12:07we got bitcoin as our alternatives. I
12:10like this because this kind of plays on
12:13you know printing money and the the
12:15debasement of um of currency. Um and
12:21then MLPI as energy infrastructure which
12:24I think is just yeah like it's important
12:27to have. Well, it's not important to
12:28have, but I think it will continue to do
12:30very well over the long term. You don't
12:31have to include this. You don't have to
12:33include Bitcoin. You could just have
12:35these five with a bit of gold. Um,
12:37really depends on your thesis. But I
12:39think this is a pretty lowrisk
12:42safe, fairly safe. You know, nothing is
12:45completely safe when it comes to income
12:46ETFs. The fact that you're making a
12:48distribution, again, a yield means that
12:50there is some element of risk to it and
12:52there's potential for nav erosion, at
12:53least in the short term. But I think
12:55over the long term this portfolio would
12:57do incredibly incredibly well.
13:00Okay. So what does it actually pay? It
13:02plays it pays 11.9% as a weighted
13:07distribution. So a blended yield of
13:1011.9% across the portfolio. So if you
13:14were to leave your family uh 100,000
13:16into this portfolio, it would be
13:18generating them $11,900 a year or almost
13:21$1,000 a month. If you had half a
13:23million invested, then that would be
13:25almost $60,000 a year or $5,000 a month.
13:29Or if you were a ball and you got a
13:30million, say you got a big inheritance
13:33and you got a million to throw into this
13:35portfolio, I think this is the portfolio
13:38to do it for. Um because there's not
13:41going to be a huge amount of navos as
13:43long as you're playing this um playing
13:46the long game on this. uh it will
13:49generate over a hundred almost $120,000
13:52a year from a million invested almost
13:55$10,000 a month if you were to come into
13:59a million dollars of cash and wanted to
14:00throw it into this portfolio. Now we
14:03talked about um performance of OVL and
14:05GPIQ but what about the other ones? So
14:09total return and this is max or all time
14:13frame. So, since each of these ETFs uh
14:17were launched basically, and you can see
14:19that they're all up, of course, Oval has
14:21been out the longest uh 6 years,
14:23whatever it's been. SOXY up 122%, OVs
14:27117%.
14:29GPIQ, KGLD, MLPI, NIH, BTCI. Obviously,
14:34Bitcoin's been doing pretty badly um
14:36this year, so it's not up too much. If
14:38we go to So, you'd be doing extremely
14:41well. like you know if you'd put a
14:43million into this you'd be up in terms
14:45of your capital your price change would
14:47have gone up your value of your
14:48portfolio would have gone up and you'd
14:50be making obviously better income as
14:52well your yield on cost would go up as
14:54well right now what about um price
14:57change so this is where we consider nav
14:59erosion what's happening to the actual
15:01nav the price the share price of these
15:03ETFs well overall as we talked about
15:06before up 130% soy up 80% in growth in
15:11price change alone. That's incredible.
15:13OVs small caps up 63%. GPIQ up 45%,
15:17golds up 10%, uh MLPI and knee high up
15:22just small singledigit numbers. The only
15:25one down which you could if you're just
15:28using the basic understanding of nav
15:31erosion in the sense that if your share
15:33price is negative, there's kind of your
15:35capital is being eroded away. But
15:37really, Bitcoin is down, right? We're in
15:39a Bitcoin bare Bitcoin and crypto bare
15:41market. So, I'm not worried that that's
15:43down 34%. For me, that doesn't concern
15:45me. It's small exposure. It's only 5% of
15:47the portfolio is BTCI. And I think that
15:50will climb back up when we start going
15:52into another Bitcoin and crypto bull
15:55market. That will go back up. These will
15:57all be in the green. Um, as long as we
15:59don't, you know, go into some crazy
16:01long-term recession. But I think this is
16:03pretty recession proof. As long as you
16:04just hold it, you're able to hold it.
16:07Um, I think it would do very well over
16:09the long run. But let me know what you
16:12think on this portfolio. Do you agree
16:15with uh these ETFs? What would you do
16:18differently? Um, have you thought about
16:21this as a potential topic, a portfolio
16:25that you would potentially leave for
16:26your family or a set and forget
16:28portfolio that you don't have to maybe
16:30in your retirement you just want like a
16:32simple kind of lower risk portfolio like
16:37this that you don't have to manage,
16:38don't have to worry about it. You chuck
16:40a load of money in there and uh live off
16:43the income. Uh maybe you thought about
16:45that. Anyway, I'd love to hear your
16:47thoughts in the comments, guys.
16:49Otherwise, I'll leave it there and I
16:51will see you in the next one. Cheers.