Personal investing strategy: ETFs, stocks, and crypto allocation for 2021

Executive overview

Keeping 80%+ in cash made for a safe but underperforming 2020. The shift: invest 50% of monthly surplus across ETFs, individual stocks, and a small Bitcoin allocation — automated where possible, rules-based throughout.

The core move is replacing broad inaction with a structured monthly allocation split across growth ETFs, value ETFs, emerging markets, and a capped crypto position.

Allocation framework

• 50% of monthly surplus stays in cash (taxes, emergencies, liquidity)
• 25% goes to index funds and ETFs (automated where possible)
• 23% goes to individual stocks
• 2–3% goes to Bitcoin

Index funds (automated)

• VGUC — large US companies; still favoured despite bubble debate
• VTSAC — entire US market (large, mid, small cap)
• VTIX — developed and emerging markets

ETF additions (manual)

• iShares Russell 2000 — small-cap value stocks with strong fundamentals but lower multiples
• iShares MSCI China — exposure to China's faster economic recovery post-pandemic
• iShares MSCI All Country Asia ex-Japan — diversified mid/large-cap Asian exposure
• ARK Autonomous Technology and Robotics ETF — companies reshaping industries through innovation
• ARK Genomic Revolution ETF — biotech long-term growth
• iShares Global Real Estate ETF — real estate exposure without owning property

Stock strategy

• No new positions in large-cap tech (Amazon, Apple, Google, Tesla already held)
• Focus on growth companies and green/sustainable businesses
• Each position capped at 5% of total portfolio (diversification rule)
• Dollar cost averaging used — buy at regular intervals, not in a single transaction

Bitcoin rationale

• ARK data suggests 2–6% allocation optimises risk-adjusted returns
• Corporate Bitcoin adoption (Square, Tesla) signals a structural shift
• If S&P 500 companies allocate even 1% of cash, price impact would be significant
• 2–3% position: enough to participate, limited enough to contain downside

Real estate and tax planning

• Real estate purchase (possibly Austin) targeted for 2022, not 2021
• Working with a mortgage broker to restructure business deductions
• Reducing aggressive write-offs to qualify for a mortgage