blog . invest  .

3 minutes reading time (665 words)

A Solid Coronavirus Investment Portfolio To Cash In On The Stock Market Slump.

The stock market has been on collision course in recent weeks due mainly to the global spread of coronavirus (COVID-19). Accordingly, we aligned our portfolio to help us weather this extreme period of volatility.

Investors have witnessed steep stock market declines--drops not seen since the 2008 financial crisis, amid the global spread of coronavirus (COVID-19). So far, all stock market indices are trading in negative territory. The coronavirus global pandemic, declared as such by the World Health Organization on 03/11/2020, is forcing investors to find ways to capitalize on this period of extreme volatility. Investing steps include, but are not limited to 1) portfolio rebalancing; 2) buying more securities at rock-bottom prices; 3) selling equities to prevent further losses; 4) maintaining current investment allocation. On our end, we made a few investment modifications. We maintained our diversified growth portfolio (large, small, mid-cap funds) and added a few individual stocks for income. We target both: ultra-growth & income in the form of dividends, as we show below.

[Related: 3 Premium High-dividend REIT Stocks We're Putting in our Coronvirus Basket.]

Coronavirus Growth Portfolio

Security Type Expense Ratio (%) Allocation (%) Dividend Yield (%)
Large Cap Gr. ETF0.08451.09
Mid Cap Ind. Fund0.05151.55
Small Cap Gr. Ind. Fund0.054N/A (new fund)
International ETF0.07103.75
Dividend ETF0.46210.2
Growth StockN/A81.27
Value StockN/A26.25
Value StockN/A25.54
Utilities StockN/A23.80

Table 1. Growth Portfolio: Index Funds & Stocks. This portion of our coronavirus portfolio maintains a traditional diversified portfolio (large, mid, small cap funds), while also incorporating a few value stocks that also pay dividends. This occupies 90% of our portfolio.

Growth Portfolio. Image source: Pixabay

This portfolio aligns very well with our risk tolerance. It is heavy towards growth, with our large-cap fund occupying a significant portion of this portfolio (45%). We continue to remain bullish on our large growth ETF, which has produced a pre-coronavirus return of nearly 25%. We have no intention of trimming this allocation. Although the main idea of this portion of the portfolio is ultra-growth, it is not hard to spot some amount of income. Three of our 4 individual stocks and our dividend ETF have yields that exceed that of the S&P 500's average yield of approximately 2%.

[Recommended: Not comfortable setting up your portfolio during this slump? Hire a financial advisor!]

Coronavirus Income Portfolio

Security Type Expense Ratio (%) Allocation (%) Dividend Yield (%)
REIT-Mortgage N/A2 11.73
REIT-Industrial N/A2 8.04
REIT- Healthcare Facilities N/A2 5.8
REIT-Residential N/A2 5.75
REIT-Retail N/A2 8

Table 2. Income Portfolio: Real Estate Investment Trusts (REITs) Stocks. This portion of our coronavirus portfolio is built for income, using real estate investment trusts (REITs). REITs occupy 10% of our portfolio.

Income Portfolio. Image source: Pixabay

Real estate investment trusts (REITs) are required to distribute at least 90% of their taxable income to shareholders via dividends. Therefore, we selected a few high-quality small-cap REITs with a track record of paying dividends to obtain guaranteed income. We decided not to invest in bonds. Here's why.

[Related: 3 High-Yield Dividend Stocks for the Poor & Cheap Investor]

The bottom line

The coronavirus global pandemic is testing investor patience. Making changes to your investment portfolio to fit your risk tolerance and investment objectives may be necessary changes you can implement to weather this period of extreme volatility. We believe our coronavirus portfolio is well-positioned to withstand this pandemic or any future stock market headwinds. Subscribe below to obtain the names of all the funds and stocks that comprise our coronavirus investment portfolio.

[Related3 Simple Tips to Help the Rookie Investor Weather Stock Market Volatility]

Disclosure: This article contains an affiliate link to an investment product. We may receive a commission through this link when you join the partner. Our full disclaimer. Portfolio current as of article publication date. 

Is The FIRE Movement A Huge Success In The US?
9 Costly Investing Mistakes That Make You Look Lik...

Related Posts

 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Thursday, 22 April 2021

Captcha Image

By accepting you will be accessing a service provided by a third-party external to https://newvestor.com/

Stock Screening Tool

Stock screening and investing made easy with Stock Rover. Discover your favorite stocks! Why Stock Rover? Disclaimer.

SPONSORED CONTENT

BECOME A FAN. SUBSCRIBE

Investing is for Everyone.

Investing is one of the best ways to build wealth quickly. Let's get you started below.

Investing can be intimidating when you're just getting started. Let's simplify it for you. Let's start with the building blocks.

Read our latest blog articles about investing, financial freedom and debt management. Give us your feedback.
Got $5, $50, $100, $1,000 or more? Investing your way up to financial independence is achievable.  Ready to get there?

#Featured Stories

#Sponsored Content

#Most popular

How to invest in real estate without buying properties.

Can you invest in real estate without buying physical properties? Yes, indeed! Here's your guide...

Poor? How to invest $50. Here's what we recommend.

Got $50 collecting dust? Get on the path to financial independence. Here's what to buy...

Cash is trash, not king. Invest your cash to build wealth.

Got cash sitting around? Being robbed by banks? Your money is losing value. Invest it to build...

#Product Reviews

Stock Rover: stock screener!

From stock screening and research to full portfolio analysis, we haven't found a more robust screening tool.
Read more

SoFi: Simple investing platform

Investing has never been so easier with SoFi. With a simple app, start investing in stocks, ETFs & Crypto.

Read More

Stock Rover: Stock Screener.

From stock screening and research to full portfolio analysis, we haven't found a more robust screening tool.

Read More

#Let's Invest!

Disclaimer: We may receive a commission for products or services you sign up for. Thanks! Full disclaimer.

#Get in touch.

Please fill out the form below. We will get in touch soon.

#Become a fan.

Subscribe for our latest updates, blog posts and investing tips. No spamming!