From P2P lending to ETF Bonds + Portfolio Update
If you have been following my posts I have been investing using Mintos for P2P lending. During the start the pandemic but probably unrelated to that a lot of Loan originators (LOs) defaulted. Two of them were in my portfolio Aforti and Capital Service, both from Poland and both seemingly still operating normally under the protection of Covid related laws. Fortunately my investment on them was only small, diversifying between LOs is important. Unfortunately now all my previous profits from mintos have been frozen and are awaiting recovery. This recovery based on Mintos will take more than 3+ years after an agreement has been reached between them and Capital Service more details here. Yes I know investing in 12% loans is risky but due diligence and constant checks on the LOs should be the job of Mintos. Lastly we (investors) should be able to sell our loans in secondary market, in order to have the ability to take a couple of cents per Euro now instead of waiting for 3+ years for partial recovery of our funds.
My investing portfolio follows the 80-10-10 strategy. Which breaks down to 80% of money invested in stocks, 10% of money invested in cryptocurrency and 10% of money invested in Loans.The above led me to the decision of going full on corporate for the last 10%. This means bonds ETFs instead of P2P loans, so I stop autoinvest in Mintos and started transferring all my available funds in trading212.com. My preferred ETFs are VECP and VGEB both in EUR as my USD related investments in stocks are now a big percentage of my total liquid assets (investments + cash). Both ETFs have good returns (better than bank deposits anyway) and low expense ratio that is really important in any ETF plus they are managed by Vanguard the largest asset management company in the world.
In the following image you can see my invested portfolio until 08/01/2021
In the following image you can see the percentage of my portfolio based on current value on 09/01/2021
As you can see finally after months on negative from crypto it now represents 30% of my total assets. While stocks are still the 65% probably due to Tesla (TSLA) skyrocketing again. At this time the correlation between TSLA and BTC will be at a maximum because the same investors driving the price up for TSLA are also buying BTC and any other crypto they can get their hands on, on what I can only describe as FOMO.
In the future I will be adding also EU stocks, to lower USD risk, using trading212.com. I have already created an autoinvest Pie that I will share in a future post after I start investing on it.
Leave a Reply