 Hi guys. Welcome back to the Independent Investor Channel. We're going to jump into the Vanguard sector specialty ETF portfolio. I know this is a touch exploratory. I know there's some folks out there that would just say, hey, why don't you just invest in the S&P 500 and call it a day? I do that already. Okay. And this is a cool way of coupling the technology of M1 finance with each of the 11 sectors, right? I think if you invest in the S&P 500 and the whole thing goes up, right, you make money. When the S&P 500 goes down, you'll lose money. I think that this is just a different hybrid way of seeking individualized tailored exposure to each of the sectors. So there is a possibility of having the S&P actually digress on us, but having certain pocket sectors perform. And with this strategy, this allows you to capture some of that performance rather than just put all of your eggs into the 510 companies that make up the S&P 500. And it's an interesting way as well to be able to invest in all 11 sectors and do so with as little as $25, $50 every couple of weeks, whatever it is that you choose, and allow that money to be portfolio redistributed across all the sectors, right? If you had to just invest in the S&P 500 on a traditional broker, you'd be stuck having to put $360 per share at minimum to buy a whole share of, let's say, VOO. M1 Finance takes all that out of the equation and allows you to go ahead and invest in partial contributions to each of the sectors. It divides your money up automatically. So all you really have to do is take your allocation or take your contribution and just throw it at this portfolio, let M1 do the rest. With that, we'll jump into the account and conduct the review. Hi guys, welcome into the Vanguard Sector Specialty ETF portfolio. This is one of the most proud projects that I've rolled out, a little bit exploratory in nature for you guys that have been following me for a long time. I do chronicle this portfolio fairly frequently on the channel. I think there's a lot of people that come in and they catch this for the first time and it's of interest. And for the folks that are returning subscribers to the message, it proves or it serves to be an update to the portfolio, tracking progress. It's interesting enough to see how these sector specialty ETFs perform as a basket all in one portfolio. So for you guys that don't know, this is comprised of all 11 sectors, okay? Technology, industrial healthcare, materials, energy down the line, okay? It's got them all. This is a taxable brokerage account. With M1 Finance, it is completely passive. I've had this portfolio since March 5th of 2019, so just a little over two years of having this portfolio. For a beginning investor, this can mean an awful lot. And I want to bring your focus to a couple of things, okay? If you were looking to invest now, get started in the market. You don't know anything about what the investing opportunity brings. This portfolio, the way that I've built it requires zero energy, zero. Once it's done, I fund this up every couple weeks and I let it go. I have not touched this portfolio for two years. There's no buying and selling in this portfolio per se. The only buying that I do is on a dollar cost average basis every couple weeks. Now I've had a few people come to the channel and give me a little bit of grief about some fund ups here that they noticed on the chart. Absolutely. The great thing about passive investing is that you can monitor the market and when the market is actually down, you can use that as an opportunity to put a little bit more than your dollar cost average schedule would demand every couple weeks. In other words, if you've got a $500 bill or $1,000 bill sitting aside and you see that the market is dipped a little bit more aggressively, you can use that to buy the market. So it's almost as if you're using your account as a barometer of the stock market and when it does go down, you do what most people do and that's panic. Do what's contrary to common thought of panicking yourself out of the stock market and in fact, use that as a buying opportunity. That's point number one. Point number two is this top-end gains here are $4,000. This is serious money for a relatively small portfolio. Approaching $15,000, I started this with a couple grand and it has performed absolutely incredible. It has performed better than I expected it to perform. This was again somewhat experimental in nature and I'll explain that when I get to the bottom end of the portfolio. But for a lot of new investors seeking exposure to the market, a lot of people have come to the channel and of course they want to have problems with the way that I invest my own money, which I find ironic. I really do. Why don't you just invest in the total stock market Ryan and just not do this? Well, I do that. I do invest in the VTI in another capacity, in another account, in my total comprehensive portfolio. This is just what works in this particular hybrid method of seeking out passive exposure in a brokerage account. This is what I do. Well, why don't you just own the S&P 500 Ryan? I do. I do own the S&P 500 in my Roth IRA in a much larger position that is in the Roth. This is not tax protected dollars. Since I already own those avenues or own those assets in other places, this just made good sense to me to really drive home and really embrace the idea of passive diversified assets in a little bit more of a hybrid structure. It's performed well. It's performed well for a couple different reasons. The DCA schedule I've already mentioned. The market has been conducive, so I've got some capital gains here. That's great. But I think the funding and the way that M1 Finance puts new dollars to work in underperforming sectors really cannot be overstated in this portfolio. In other words, when energy was underperforming for those many, many years and months leading up to owning this portfolio and then owning energy into that downturn, new funds were flowing in there constantly with the technology of M1 Finance. No other broker allows you to do that. No other brokerage does portfolio redistribution of funds. I think that really needs to be earmarked as an incredible benefit to M1. I'll quickly mention here the $285 of dividends rendered here in passive income is also not to be understated. Multiple aspects of positive flags in this portfolio that new investors can look at and say, wow, Ryan's really hitting it on the head here. He's talking about dollar cost averaging, capital gains, positive dividends, positive portfolio redistribution of funds, positive. We're up in all 11 of the slices here. And I might just add we are up handily in all of the slices. Okay, even with the downturn in technology and the rotation, right, that rotation is flowing somewhere into the S&P 500. I have my presumptions that it's going into a multitude of different value avenues like financials, energy specifically, utilities, real estate really it's flowing into a lot of those value names, staples as well. I'm seeing some inflow and I'm benefiting because I own all of them. And I think there's a lot of people out there that try to say, you know what, technology is my favorite, I'm just going to own technology and you forget all the other sectors. I think that's a real mistake. And I think that was part of my strategic angle when I started this portfolio initially is that if I was going to own the sectors individually, I wanted to insist on owning them all within the same portfolio. In other words, I was not going to omit a sector. I wasn't going to do that. And I know there's a lot of schools of thought out there that would say, Ryan, you suck. That's a terrible approach. You know, material sucks. And I think some of those underweighted sectors in the S&P 500 are some of the best wealth generating avenues that are in the S&P 500. And I think so many people are stuck chasing the top end stocks in the S&P that they forget that sometimes that that that so called junk in the portfolio can actually render some incredible returns. Case in point, good doesn't remain good all the time. And junk, per se, doesn't always remain junk always. In other words, the performing stocks just don't perform good all the time. And there's going to be companies that you wouldn't normally have invested in as an individual company. But by nature of owning them in this diversified method, some of that wealth can be generated from some of the most deepest pockets of the stock market that don't get attention at all. But those can really lift that with the tide as the stock market does improve over time. So just wanted to highlight some of the gains in here. We're doing quite well. It's progressing well. You could split this up in the slices that I have and name them technology health care financials. I actually built this portfolio before I knew how to do that. So admitting that this portfolio is built the way that it is and it's got the slices, you know, in each of the in each of the actual products itself, it really speaks to how insistent I was upon deploying the strategy. But if you wanted to get cute with it, you could actually name these technology slice health care slice financial slice and so on. And then click into it and see the one individual holding in there. I found that to be after the fact not necessary. This does the job the same. And hope you guys really appreciate this update on the Vanguard specialty ETF portfolio. With that, we'll kick you back and we'll conclude the video. All right, guys. So we've come out of the Vanguard specialty ETF portfolio, just a unique way of seeking exposure to the stock market. Interesting enough, you know, anybody can do this. It takes very little to no effort. If that's of interest to you guys, you might want to subscribe to the channel, identify how many other strategies I roll out like this. I invest in the stock market in a lot of different ways, dividend growth, passive speculation, I kind of try to do it all because I think each individual strategy has its own unique benefit. You leave your comments at the bottom of the video, guys, and share the message with anybody out there that has an interest in stock market investing. Bring them on to the channel. Certainly, we provide a lot of different avenues and strategies to seek out that exposure to the market and start wealth building for yourself. Guys, thank you so much for tuning in to the message and good luck in your investment future.