 Guys welcome back to the independent investor channel in this video. I'm going to jump into my Sector specialty ETF portfolio offered by Vanguard. This is an account that I've had for just over three years It's performed quite well. We're going to track the progress in there This is a diversified way of approaching wealth building 101 and it can apply to the masses as I'll explain as we get into the particulars of the Vanguard sector t ETF portfolio With M1 finance and for the viewers here love to welcome everybody into the M1 account. This is the Vanguard ZTF portfolio It's got the sectors all 11. It's broken down Strategically by percentage. I'll explain that a little bit when we get to the bottom end of the portfolio But for you guys that perhaps are new to these portfolio reviews. I do them periodically Through the channel to show progress. I really want to demonstrate To new investors out there that investing is a it's a process And it is not one of those things that you get involved with in the acute and and you find riches overnight It is more of a process that I think people need to incorporate into their life They need to become long-term investors This account was started beginning of 2019 March 5th to be exact. So we've had this portfolio working for us for the last three years in about four months and It has performed absolutely magical and we have owned this portfolio in good times And as of late you can see here on the church the small tail off that we've incurred here as it's rolled off due to the volatility, but you know, we're the real takeaway here for a lot of investors that may be looking for options is the you know the ability of this portfolio to really weather storms and You know, I think it is imperative that investors look at this passive investing option as their first and only option for quite some time and allow themselves to understand the psychology of the stock market and You're looking at the brokerage account for M1 finance here and M1 finance is One of those brokers that I share with my independent investor audience because I think it aligns a new investors desire to get involved with stock market investing With what I think the they should be adhering to and that is a passive approach M1 finance is not a trading platform It is an investing platform and new investors really need to adhere to that as quickly as I can Just to put some context Around that statement. I have invested in this portfolio over the last three and going on three and a half years And I've never touched it. I have never taken money from this. I have never rendered profits I have only funded this so it's a very important takeaway for those investors And this can really provide a lot of value for viewers in that I share this portfolio openly with investors It's in the description of all my videos listed under the vanguards Sector specialty ETF portfolio, but for the sake of transparency I will also share this in the description or the comment section for you you guys for ease of access For those would be patrons to M1 This may be your opportunity to start investing. I started this portfolio with around $1,500 That can absolutely be a very very prudent entry to the market for new investors For would be existing customers of M1 finance. This can be an opportunity to take and save An idea or a portfolio that does it a little bit different. I break down the sector strategically Instead of investing in the S&P 500, which I do in other capacities in other buckets of my total portfolio Just understand that the independent investor channel is affiliated with M1 finance and we always will be They provide a phenomenal cutting-edge product. Their technology is awesome And it really just allows you to pursue what I feel is the most important Aspect of investing and that is approaching Investing as if you are a wealth builder Please understand that if you do click on the links and start your portfolio with any of my links the independent investor channel Can be provided a small piece of comfort Compensation for offering these tutorials, but these are wonderful These really allow it would be investor in a few minutes to sit back and look at a real portfolio these are real dollars these Dollars have been grown over the time frame that I have disclosed to you They have grown and they have digressed So you're seeing all of the whims and ways of the stock market demonstrated for you Right through the complements of YouTube and I think it's a very very powerful way To get to those would be retail investors that are looking to get involved in the stock market in the correct manner There's thousands of different ways out there's People who are selling different strategies for you. I contend that there is only one and one alone That stands paramount in comparison to all and that is the passive investing approach make no mistake about it This is just an example of that So total inflows into the portfolio 17 and a half thousand. We're up about 3200 In capital appreciation still in this portfolio with about $722.50 and dividends to boot. I'll kick you over This is a new feature in M1 finance that allows you to view the dividends per holding in my case I have 11 these are the 11 sectors that make up this portfolio And here are the dividend renderings that have been that have been drawn off of each of these different ETFs You see here energy and financials lead the way followed by real estate coming up third But in the last few years, I mean look at these renderings. These are nothing to shake a stick at these are just the dividends earned Okay, so 722 50 coupled with the capital appreciation of just shy Or just north of three thousand dollars totaling just shy of four thousand is nothing to shake a stick at when we're talking about a relatively lower portfolio and If you're a new investor out there and you sit back and you look at this and you think gosh You know in three years, I can have over twenty thousand dollars invested if I just you know Take a building approach like Ryan and that's the amazing part about my message is that it does scale To the masses. I'm not asking you to get lucky I'm asking you to adhere to a tried and true Method of fundamental wealth building here and this is something that anybody can do I find all the time that so many people want to go out there and they want to find those 999 other Aspects or or avenues or approaches to the stock market and they'll end up coming back to passive investing because they've been burned by those 999 other methods of investing when the answer is right here in front of your face on how to properly wealth build in the stock market And I openly share this I do it with ferocity through the channel because I understand that there is a lot of misguidance out there Schools of thought will watch my channel and they'll understand exactly what I'm doing And I just so happen to be right and I share this so people can sit across from a real example of a wealth builder Who invests in the stock market passively and just to put some context around this portfolio? I have only funded it. I have never taken a rendering from this nor do I plan on doing that This was established with the idea of diversification and funding over the long term and allowing this money to build and grow Over time. Okay, and I and I think those are the the fundamentals that any investor out there can adhere to They can take they can deploy for themselves and they can find success in very important I want to bring your attention to the value over time here in the chart This is of interest to me to demonstrate how when you start the account, it's not going to do very much Okay, this grew its value over time and it was really kind of a Straight line and then I fund it up just a little bit here and then we went into the pandemic low here Okay, so look at all that time that I started the account and you know new investors are going to question why they even do what they do Oh, this Ryan guys off his rocker. Where's my $20,000? But if you notice something great happened here is that the snowball effect started to happen with my constant funding and My constantly adhering to the passive investing philosophy over the long term It's really been able to demonstrate for you guys How wealth can be grown? Over a relatively short amount of time and you might be thinking okay. Well, how does the portfolio stack up? This is it. We are up in all 10 out of 11 of the sectors and when I consider Sectors and I say that for you guys that may be new to the concepts of investing This is broken down into 11 slices each slice or sector is indicated here and healthcare information technology financials consumer staples consumer discretionary utilities industrials Real estate and down the line represent each of those different groupings of stocks Okay, so if you're a new investor, you could look at this and say wow, this is incredible and you might say okay well, how many Different healthcare names are comprised in these different names and you can go into each of these And again, this is part of the reason why you want to you know, maybe kick over and borrow my portfolio I own 12 shares of this one here, but you can kick into the VHT details here and get all the information that you want About what it does what it tracks How many different holdings are are in the ETF itself? Top its top holding is Johnson and Johnson and United Health, which is right in line with what you would want So just just a really cool aspect of understanding what you own here Just shy of 16 billion and market cap in this particular ETF So kind of kind of a cool way of doing that and so if we go back here to the home and We check here at the bottom And you guys can take and find that information once I share the portfolio with you you can you can go to find out each Individual more information on each individual But I want to focus on the performance of each of these if you notice here healthcare up over $500 a lot of people are losing a lot of money right now in the market due to the volatility I'm up and I've given back some house profit here But but sitting good here with the market off about 20% year-to-date We stand to to really take a nice upside appreciation in this portfolio as it's used some house profit To buffer the downside volatility that we've incurred in the market over the the last few months and You know I look for these to really embolden and you know Strategic goals for me for the portfolio would to be to get and achieve that 25,000 and then up to the $50,000 mark in this portfolio in each of these holdings I'd love to get each of them up to $10,000 and we will there's no doubt in my mind So this is just indicative of what happens Over time if you're willing to take a tried-and-true approach to passive investing and build wealth over time now The only strategic piece to this portfolio That I have is the allocation Okay, and I don't want to lose new investors here But what I've done here is I've asked this portfolio to try to achieve a 13 percent target allocation Now the reason why it's run above that target is because health care has outperformed and So there will be times when the equities within the CTF the stocks itself out perform and out pace This target allocation, okay Now what this means in M1 finance is that new fundings will not flow into this health care Slice rather go to fund some of the underweight Sectors within this portfolio So health care is kind of on its own to perform if it digresses it will digress toward that target if it continues to Appreciate it will continue to expand beyond this target But it will not be by nature of new fundings that this health care ETF grows Now conversely right below it. We have technology that has a target of 14 percent and as you are well aware Technology has really rolled off. Okay, so that's why we're below the target here and think of M1 finance is Constantly trying to find that equilibrium in your portfolio as you've asked it to perform so new fundings this could flow into technology if new fundings are Injected into the portfolio because we're trying to boost it back up to this target allocation of 14 percent. Okay, same idea here in financials financials have rolled off Okay, so this is the target of 12 and 11.4 is the actual dollar amount at the time of filming this video Okay, consumer staples. They've outperformed. So we're over a little bit on that But I have set these targets and this is something that is customizable by you You can use mine. It's fine. I mean they make sense. They are arbitrary. There's no right or wrong answer It's just a preference and I share those preferences with you guys and a lot of would-be investors You know may not have the wherewithal to come in here and set these preferences in a way that makes sense In other words, you wouldn't want to set this to be, you know 20% devoted to communications Sector because that's one of the one of those sectors that I don't want the bulk of my money going to So when I sit back and I say, where do I want the bulk of my money to go in this portfolio where you can see here on the top End, I've got 12 13 and 14 percent Respectively all going toward these top three sector ETFs and it just makes sense for me in accordance with what I prefer as kind of a rule in this portfolio and So you can use what it is that I have when when you take advantage of the portfolio itself Or not so it's totally up to you But guys I really appreciate you tuning in to this and we'll kick you back and we will conclude the video guys Thank you so much for tuning into this message man. This Vanguard portfolio it can apply to the masses It's a great way to get exposure to the total stock market using the sector specialty ETFs These ETFs if you do a little bit of research on them They perform at about a 10% clip every year and it's great to own them all because when one sector outperforms and another Underperforms that outperformance will eventually rotate to those underperforming sectors And you always are there to catch that Appreciation on those sectors if you own them all guys if you enjoy the message coming through you want to make sure and Subscribe to the channel hit the notification bell if you like updates like this the portfolio reviews are fairly popular through YouTube because people get to take a Seat right next to me an experienced investor I get to show you a real account these are real dollars in the account and can really help provide a visual learning Experience for those investors out there that want a visual tutorial and they want to understand and really taste what it's like To be an investor I take you as close to the edge to that very feeling as possible through the power of YouTube Guys share the message with anybody out there that you know is looking to start in the market And they know that they do these portfolio reviews for them leave your comments at the bottom of the video guys Thank you so much for tuning in to the message and good luck in your investment future