hello everyone and thanks for tuning into the financial investor channel my
name is Brent and today we're gonna be talking about m1 finances portfolio and
how you guys can create your very own essentially an ETF an exchange-traded
fund without the expense ratios so today's video we're gonna talk about one
fun that I had talked about previously which was the essential 40 now I've
already brought up a little article here let's go ahead and bring that up
so the essential 40 is basically 40 stocks that are essential to life right
now this is a mix of active and passively managed stocks each stock has
a weighting of 2.5% waiting meaning that you know it's pretty diversified no one
stock is greater than another and it has a very you know unique range so it has
many tech stocks texts and services as energy has healthcare financials
materials industrials we have some staples and you have some discretionary
and then just the one telecom stock which is Verizon I would have chosen
AT&T over Verizon but to each their own also this one holds GE which you know
right now we're just basically going to be going through and I'm gonna show you
how you guys can make your own exchange-traded fund if I am talking a
little bit quiet its 1250 in the morning right now I have to be up and do some
work out one so that's why I am up right now so I'm going to try to make this
video quick we're gonna be creating our portfolio over on m1 finance that'll
track basically the essential 40 without the expense ratio making sure that all
those earnings and capital appreciation dividends that you make for your future
are 100% yours you don't have to pay a financial advisor to manage your
portfolio and there's not going to be an expenses coming out of your portfolio
because you're using m1 finance which is be free and
offers free free and the same free stock buys so you can buy stocks for free so
what we're gonna be doing is selecting add slices and we're gonna be starting
here by beginning to add some of these stocks in so all we have to do is select
the stock type them in hit the plus sign it's going to queue them up towards the
bottom now we're going to go through here and at all of our tech stocks in
which we have facebook we have Amazon we have Cisco and infrastructure we have
Google at the services and TAC apple with their attack and services we have
some big names here an apple you know more tech more services we have Intel
you know these are all very good large companies ADP know for their human you
know Human Resources if you log in I pay maybe no I pay I think believe that was
in the military but if you log in to you know till beYOU your your paychecks
and such a lot of times you'll be using either ATP or paychecks I believe so
that is ATP here that was our last one in the tech sector so we're gonna hit in
an ad and that will have added our stocks into our portfolio so we have two
four six eight stocks out two four six eight okay that's correct
let's go ahead and get into our energy so next we're going to be adding Exxon
Duke Energy
EP D and those are our three energy one so
I'm gonna go ahead and add next we go into our healthcare so we have our
United Healthcare our bristol-myers very we have to hit the plus if you don't hit
the plus it won't queue it up at the bottom and you'll end up missing it and
then with a list like this it would be really hard to find out which stock we
did not add in and then Johnson and Johnson there's that's a pretty nice
pretty good well diversified healthcare area so now we're going into our
financials visa accepted everywhere I would always choose visa over MasterCard
JP Morgan one of the largest banks and financial institutions I didn't I'm
surprised they don't have Goldman Sachs on here but JP Morgan is a great bank
too and we have CME Group we have AIG
and what appears to be berkshire hathaway this has a B at the end the
ticker symbol that they use is the a which is the incorrect one so I'm going
to go ahead and add B and that is our financials so we've added our TAC energy
healthcare and financials now we're going into our materials so IP is the
paper paper company great company I've owned them in the past the Dow DuPont
great company Monsanto X I've never heard of X that's us steel and then
potage I don't believe we can add Canadian stocks in here what we can
definitely try us go ahead and hit potage that's intrepid potage Inc I
don't believe that's the correct one so I'm gonna go ahead and leave this one
out and what would be a good material sock I don't I can't think of one off
top ahead so I'm gonna go ahead and just continue on to the industrials so we're
gonna add these in continue into our industrial sector waste management got
company H we have Triple M so a lot of these names you may
recognize American Airlines these are just you know the essential 40 American
Airlines when you're flying anywhere and you Mase flight Delta American Airlines
but these are some of the big names that are you know going to be used FedEx you
could also throw ups and there instead it's really up to you how you want to
diversify your portfolio General Electric you may not want to
hold General Electric but it could be bottom doubt you can see here it did
bottom out I'm sure drain this even this correction period it's just a good time
to buy these stocks because they basically bottomed out so last one on
our industrials was Lockheed Martin we added those in next we go to our staples
we have Costco great company we have Cisco for their delivery of food I
remember I seen Cisco trucks everywhere just delivering foods in a CVS those are
pretty good companies right there so those are some staples next we go into
our discretionary we have CVS we have Comcast charter I don't usually
see a lot of charter I knew people that work our charter but very little that
invest in charter we have Home Depot that's another one I'd probably choose
Lowe's / Home Depot and then we'll add those in and then last we have Verizon
so let's go ahead and add the Rison in here and add it to our portfolio so that
should give us 29 stocks let's go ahead and hit Save Changes confirm now we have
our portfolio in there so you can see over the year this essential 40
increased by twelve point seven seven percent over the last year now some of
the stocks that may have affected this part folio negatively would be generally
Elektra or General Motors if we remove it from our portfolio and hit save it'll
probably adjust this but I'm not going to go ahead and do that I'm gonna go
ahead and just hit refresh and that'll bring it back in because I've already
saved it with General Electric in there so all I did it bring it back in so I am
missing one stock you can see here that you can see here that if I had Toronto
Stock Exchange this would all be weighted at 2.5 but because I do not
have it in there I currently have 39 stocks I believe so if we go through
here we'll have one two three four
ten
20
thirty
eight so we have 38 stocks in there so there may be one that I missed so if you
guys saw which one I missed but I know we missed this one here the potage one
because I could not find the Tigger what other one I'm gonna add in for Telecom
is going to be ticker symbol T I'm gonna go ahead and add that one in there and
discretionary is we're missing some staples I'm gonna go ahead and add
I'll go ahead and leave that as it is for now so I'm gonna go ahead and
equalize targets so everything is that three percent and 2 percent right here
so it looks like it doesn't it doesn't go into the 0.5 so you can't enter a 2.5
so that's why some of these are showing up as three percent target and some of
these are showing up as two percent target so I'm gonna go ahead and hit
Save Changes so now we currently have 39 different stocks in here you can see
here that the performance and the state about the same even with the addition of
AT&T so we have eleven point seven nine percent return over the past year we
have an average yield of two point one eight meaning that for every hundred
dollars that we have invested in this portfolio we will get roughly two
dollars and 18 cents back from dividends for the entire year so if you have a
thousand dollars they'll get roughly twenty one dollars and eighty cents if
you have ten thousand dollars you'll get two hundred and eighteen dollars back in
just dividends oh it shows our here we have 39 Holdings so we are missing one
stock and you guys can add whichever kind of stock so here we essentially
made our essential 40 so essential 40 cool it's actually 39 so no copyright
you know we got our essential 39 stocks now you can mix and match if you would
like to remove General Electric and add some other
Industrial company I would recommend that
I'm sure without General Electric being in there you know it could it does
actually have a lot more up potential than down potential as they begin to
split up but who knows if their price will drop once they begin to split up
and I'm sure even if it does you'll get other companies you know as they split
into more companies you're be rewarded with the companies that they split into
so that is basically it we have created our essential thirty nine portfolio it
has an expense ratio of zero we are holding thirty-nine stocks we have an
average dividend yield of two point one eight and if we go to our portfolio now
it does show up here if we added funds into this portfolio on the next trade
day our m1 finance app what by you know basically whatever the actual it would
buy into the target to match the target so we would put in our money in there
and then whenever it hit the target cap whenever the actual percentage would hit
the target cap it would stop in that specific stock and continue on and tell
all of them were funded and then if you would want in the future there'd be a
rebalance here so you could rebalance your portfolio if it begins to get over
weighted in one specific sector and you feel that you can rebalance it and some
of your lower hanging fruit will be able to you know grow gain some capital gains
and then I'll bring your portfolio back up
better so that is basically it we have covered how to create your own
exchange-traded fund if there's an exchange-traded fund out there I'm not
sure how many stocks you can actually have within your portfolio but you can
see here that we have 39 different stocks with on our m1 finance so when
money comes into this portfolio it'll get split up between 39 of these
stocks now this may be a little bit more diversified than what you want you know
every one is different diversification there is not a wrong way
or a right way to do it the more diverse afraid you are the less risk you may
have but at the same time you don't get as many returns whereas the last
diversify you are if you're only buying one or two stocks and those stocks go up
10 20 30 % then you get the higher risk and reward because those same stocks
could go down by 10 20 30 % so diversification it's all up to the
person and what their risk level is so that is there for this video I hope you
guys have enjoyed the video if you did I'm going to like this comment or like
the video remember to leave us subscribe for future financial videos thank you
guys for watching up to this point if you are brand new to my channel do you
hit the subscribe button I really appreciate it and that is it for this
video I think you guys for watching I will see you next time have a great day
bye
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