Inside My Portfolio: What I Hold And Why

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Includes: ARR, CYS, DX, EPR, FCX, FSITX, FSIVX, FSRVX, FSTVX, FUSVX, MO, MTGE, NNN, O, PM, SCHB, SCHC, SCHD, SCHF, SCHH, SCHZ, STOR, TGT, VNQ, VTI, WMT, XOM
by: ColoradoWealthManagementFund

Summary

I’ll take readers through a look at my personal portfolio.

In late July I took advantage of high prices on domestic equity to move some capital from equity into bond funds.

I added to my position in Philip Morris.

It is useful for readers to have a solid disclosure about the investing choices of the analysts they follow. Seeing the choices the analyst has personally made and what plans the analyst has for their future investing choices provides other investors the opportunity to better understand the mindset of the analyst and determine how they feel about the quality of the analyst's research.

My individual holdings are a mix of ETFs, stocks, and cash in my accounts with more freedom and mutual funds in employer sponsored accounts. Because the employer sponsored accounts are limited to mutual funds, the amount of overlap in my portfolio is higher than it would otherwise be. After Brexit the market recovered most of its losses and bond funds are legitimately higher as the international situation put more pressure on interest rates.

Positions and weightings are as of the end of July.

Holdings

The following list contains my current holdings, recent holdings, and some of the shares that I am currently considering taking a position in.

Ticker

Name of Fund

VTI

Vanguard Total Stock Market ETF

FSTVX

Fidelity Spartan® Total Market Index Fund Fidelity Advantage Class

FUSVX

Fidelity Spartan® 500 Index Fund Fidelity Advantage Class

SCHB

Schwab U.S. Broad Market ETF

SCHD

Schwab U.S. Dividend Equity ETF

MO

Altria Group

XOM

Exxon Mobil

WMT

Wal-Mart Stores, Inc.

TGT

Target

FCX

Freeport-McMoRan

FSRVX

Fidelity Spartan® Real Estate Index Fund Fidelity Advantage® Class

VNQ

Vanguard REIT Index ETF

SCHH

Schwab U.S. REIT ETF

NNN

National Retail Properties

STOR

STORE Capital

O

Realty Income Corp.

EPR

EPR Properties

SCHF

Schwab International Equity ETF

SCHC

Schwab International Small-Cap Equity ETF

FSIVX

Fidelity Spartan® International Index Fund

PM

Phillip Morris International

FSITX

Fidelity Spartan® U.S. Bond Index Fund

SCHZ

Schwab U.S. Aggregate Bond ETF

GOOD Pref

DX Pref

EPR-E

ARR

ARMOUR Residential REIT

MTGE

American Capital Mortgage Investment

DX

Dynex Capital

CYS

CYS Investments

CASH

Click to enlarge

From that list, the ones that I'm not currently holding are:

SCHB, FUSVX, XOM, O, EPR, CYS, and the common stock for Dynex Capital.

New Positions

I added to my position in Philip Morris. Philip Morris has great dividends and sustainable earnings that understate the growth rate in sales due to the impact of exchange rates.

The Categories

As an American, I'm heavily invested in domestic equities and I classify all foreign investments as international.

Click to enlarge

Compared to the prior month, my exposure to domestic equity markets is substantially lower and my bond position is much higher. The market simply feels too expensive to me, so I moved money into a fairly low risk bond fund.

Individual Companies / ETFs / Mutual Funds

The next chart breaks down the allocations by the actual ticker.

Click to enlarge

Domestic Equity: VTI / FSTVX / FUSVX / SCHB / SCHD

The first five investments offer exposure to the U.S. market while having very low expense ratios. SCHD is making my portfolio just a tiny bit overweight on the established dividend companies, which makes things feel slightly less volatile in a market that has been fairly volatile. I cleared out the position in FSUVX in favor of bonds due to the high prices on domestic equity in late July.

WMT, TGT, MO

My other allocations for domestic equity are through WMT, TGT, and MO. This is a solid group of dividend champions. I took a position in Target after their poor earnings and explained how Target's decades of dividends were thrown on the clearance rack.

VNQ / FSRVX / SCHH

This is a fairly small position, but it gives me some diversification in the REIT exposure.

Preferred Shares

I like preferred shares as a way to generate strong yields in a low rate environment. I will move my positions around some based on the changes in which shares are offered at attractive prices. Lately there have not been as many opportunities.

Expected Moves

I am moving cash from some of my preferred shares to free up capital for another trade idea. ARMOUR Residential REIT will report earnings after the market closes on 08/02/2016. I am hoping for a bump in the share price that would put discounts at roughly comparable levels to peers and lead me to look for the exit.

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Disclosure: I am/we are long VTI, FSTVX, FUSVX, SCHB, SCHD, MO, WMT, TGT, FSRVX, VNQ, SCHH, NNN, STOR, SCHF, SCHC, FSIVX, PM, FSITX, SCHZ, PREF SHARES OF GOOD, DX-A.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Information in this article represents the opinion of the analyst. All statements are represented as opinions, rather than facts, and should not be construed as advice to buy or sell a security. This article is prepared solely for publication on Seeking Alpha and any reproduction of it on other sites is unauthorized. Ratings of “outperform” and “underperform” reflect the analyst’s estimation of a divergence between the market value for a security and the price that would be appropriate given the potential for risks and returns relative to other securities. The analyst does not know your particular objectives for returns or constraints upon investing. All investors are encouraged to do their own research before making any investment decision. Information is regularly obtained from Yahoo Finance, Google Finance, and SEC Database. If Yahoo, Google, or the SEC database contained faulty or old information it could be incorporated into my analysis. Tipranks: Assign no ratings.