 As I'd love to welcome everybody back to the Independent Investor Channel, we're going to be chronicling my Vanguard Sector Specialty ETF portfolio. I know it's a mouthful. I get it, but there's a little bit of terminology that you got to embrace if you want to be involved in this game. What you're going to really get out of this video is to understand the power of diversification. I've built this portfolio with 11 of the sectors in the S&P 500. I have not omitted any. I'll explain more through the course of this video as to why I did that. But it's performed fantastic in the face of this 2022, while a lot of people are incurring losses of up over 50% and in some cases even more than that. I provide these insights and tutorials to the M1 Finance Opportunity to really show how defense stands up in the face of volatility. And for a lot of people that don't have time to sit there and manage their portfolio, and they don't have the risk tolerance necessary to ride stocks down 50%, 75%, and in some cases 90% into the hole, a lot of people out there, rational and reasonable people, would suggest that that's even crazy to do. I share these portfolios so you can really show and take this as a benchmark and throw it up against the S&P's performance year over year. Throw it up against some of those investors out there that have really heavily weighted their stuff to more of the aggressive growth type of style. And then even more, some of those investors out there right now that are crying and whining about everybody else's fault, the government, the companies that they invested in, or blah blah, they just picked wrong. And now some of these investors are off hundreds of thousands of dollars. This is a serious gig. And the quicker you can adhere to the idea of defensive, passive investing over time, the better off you'll be. So without further ado, we're going to kick you in. And I'm going to run you through a tutorial of the performance of the 11 sector specialty ETFs that comprise this ETF portfolio. It is 100% passive. I have done absolutely nothing to this over the last two and a half years, but fund it, watch it grow. It is a stress free way of investing. So no coming on and whining to my audience about how down I am in the stock market or how one particular stock just doesn't like me. You'll hear none of that sympathy from me rather than just the bottom line performance in the face of volatility. We'll kick you into the portfolio and begin the review. Love to welcome everybody into the M1 finance portfolio, not to be confused with my dividend portfolio. This is my Vanguard sector specialty ETF portfolio for you guys that may not even understand what I just said. It is a mouth mouthful. This is a portfolio that I built back in 2019 toward the beginning when I was just getting kind of into M1 finance. I can't speak highly enough about this broker. This bakes in a lot of discipline for investors and this was a hybrid strategy that I wanted to put in play by entering into all. And I do repeat all of the 11 sectors of the S&P 500. So there is no stone unturned. You'll see at the bottom this is comprised of the Vanguard's ETFs. Some other offerings have sector specialty ETFs and that's fine. I just offer Vanguard. I like their low expense. I like their product. I like their reputation. Hell, I like everything about them. So I don't mind using their products for the exposure in the manner that I want. But this has been just a fantastic portfolio. I'm approaching the $25,000 threshold. I've already met the initial thresholds of $500,000, $1,000, $2,500, $5,000, $10,000. And now the next one is $25,000. It's a big leap from that $10,000 mark. And I've only owned the portfolio since March 5th of 2019. For you guys that understand a few very simple rules surrounding this portfolio rules that I abide by, I only buy. I don't sell in this. I only buy and this is 100% passive. I don't take profit. I don't rebalance. I don't do anything to this other than add to it when I have a little bit of surplus capital. That is the strategic goal of this and it is what I use it for. It is kind of a slush bucket of passive investing that I invest in and I love it. I think it's fantastic. You can see the total overall inflows to the portfolio just over $18,000. We are up total aggregate of just over $4,800 and just shy of $4,000. Those are capital gains and just over $800 of those are earned dividends. So we earn a little bit of dividend income from the ETFs and those pay and are reinvested back into the portfolio. But this is a small indication on a very small scale on what can happen with the snowball effect when you invest in this way. Talking to you guys in 2022 and declaring numbers like this. These are big numbers in a year that a lot of people are running and jumping into the prepper bunkers. Either they invested too heavy in NFTs or dare I would say the for sure thing of investing in Bitcoin didn't really work out too well for them. They should have listened to Charlie Munger on this topic because now they're getting their ass kicked. And those people are going to have to go back to the drawing board and hopefully they can find a strategy like mine because I'm right. So this is one of very few strategies passive diversified exposure to financial markets that will work over the long term. It's just that simple. A lot of people can't handle the swings and stock market investing. A lot of people think that they can, but I'm here to tell you that they can't. So instead of trying to outthink the gig, why don't you just take on those tried and true fundamentals of setting up a portfolio that you can add to when you want. Or remain an investor when it suits you to do so. Monitor it, you bet you can. No problem. There's no harm in that. But this right here on the chart is what everybody's screaming and yelling about. You know, I'm not I'm fine. I take some aggressive postures in my other accounts of my portfolio, but these portfolios have really just been a nice anchor. And I'm going to look to grow these up over time. My strategic goal is to get these up to six figures each in each of my M1 finance portfolios. The one that I don't chronicle very often is my fixed income portfolio, which is about $2,500. So nothing too crazy. But those are the three accounts that I have with them on finance and then I've got multiple other accounts with other brokers, but I'm very well vested in M1 and very well rooted. I don't see myself transitioning in the near or medium term. Perhaps maybe when I get these accounts up up to something really special, you know, six, you know, maybe a quarter million in between there, maybe we'll think about bringing them home into the major brokers. But until then M1 finance is a fantastic wealth building tool. It's just that simple. So if we scroll down here, you're going to find that there's only one one dark spot in the portfolio and that's probably telecom. It's at the bottom. The rest of it 10 out of 11 are green and they're green handily telecom has really taken it on the chin. So this is an indication of how unfortunate the portfolio has performed or that sector has performed in relation to the rest of the sectors that will change in time it always does. And it has a 6% waiting to the portfolio so less than half of what I have to the top end exposure requirement in health care and technology, respectively 14% in tech it's just under performed. We were up sizably in that we've given some profits back in that sector which is fine. We're still up a $500 bill. And then health care has really taken the leading position because health care health care has just been bananas this year. It's been absolutely fantastic. So from a passive perspective, we look at these and we don't we don't do a whole lot in these. This is a nice barometer of understanding. Yeah, I mean we all know that energy is outperformed. The stables have done really really well this year in the face of adversity people are looking for safe haven. I've just held it no matter what if the market goes back to favoring technology. So be it it doesn't mean that I'm going to sell my staples or I'm going to attempt to try to buy more technology. I own these passive. And so when I contribute the dollars to this portfolio. The idea is that I'm contributing it when I can how I can and it's spreading out those dollars strategically in a manner that I've asked the portfolio to perform in. I don't try to outthink this. In other words if you're looking at this portfolio and saying well, you know Ryan wouldn't why wouldn't you just take health care and tech and and and consumer staples and just leave the rest. I think that's a fallacy. I would just assume you invest in the S&P 500 as a whole which I do in other capacities. But this portfolio wasn't built for that it was built to give holistic coverage of the S&P using the sector specialty ETFs and I didn't want to leave one out because as I've monitored of this over the last two and a half years. It's been very apparent to me that at certain times there are certain sectors that outperform and others that underperform. Energy being a perfect example of those outliers and those swings. There was a time there where Vanguard's energy ETF was down for a long long time in this and as I continued to fund it it continued to buy. And I was the beneficiary of that when that sector turns now if I outthought it and said you know what I don't want that sector I would have missed out on that. Even though I had to incur some downturn in the sector for a while sector rotation is a very very real thing and the idea here is while it's rotating out of one sector. I can be the beneficiary of it rotating into perhaps maybe the underperforming sector that I've held for a while. And I've seen that hold true in this portfolio as I've owned it. So you guys can find this portfolio in the description below. Please understand that I am affiliated with him on finance. Any length that you click and click over and start an account with I can receive a small compensation for those efforts. But what a great opportunity to sit across from somebody like myself who actually is sharing a real portfolio. This is not monopoly. This is real. You can actually see how the value has grown over time in the chart here. This is my account and we're going to live for better days. I think a turnaround in the market is really going to be a catalyst for this small portfolio. And I could see it approaching that $50,000 mark fairly quickly and then on to our six figure goal in this portfolio as we slowly build it up over time. But I really appreciate you guys tuning into this and getting the tutorial and update on this. It's performed quite well. We will continue to update this throughout the course of the channel as this portfolio grows and evolves and kind of takes on a personality of its own through the snowball effect that we set these portfolios up to render at some point down the line. It has a kick you back and we'll conclude the video. All right, guys, so we've come out of the Vanguard's Sector Specialty ETF portfolio. This is an awesome opportunity for me to demonstrate to people how important it is to enter into financial markets with a defensive perspective. If you do that, you're going to live to fight another day, live to fight another year. And 2022 has been very, very tough on investors. We got lulled to sleep for a long time and thinking that markets just did nothing but pay and forgot the very reality that markets in certain cases take. And when they take, they humble investors, even the best of investors to their knees. This is a way to avoid all of that. I want to demonstrate to you guys that I put zero effort into this. You can have the portfolio. It's in the description below. You can click on the link and you can click over. I am affiliated with M1 Finance. So all those disclaimers are in play and I can receive a small compensation providing these tutorials to you guys. But this is a real account and it's one that I share with my audience openly so that they can truly understand what it looks like to have money in play during volatile markets. And if you appreciate content like this, I would invite you to subscribe to the channel. Hit the notification bell, leave your comments at the bottom of the video and share the message with any of those especially younger investors who need to understand and adhere to this discipline that I teach upon. It's very, very easy to get caught up in the temptation of the sexy market. But there's nothing sexier in stock market investing than making money. And nobody's better than me at providing that making money tutorial to you guys and doing so using tried and true fundamentals. And thank you so much for tuning into the message and good luck in your investment future.