Google AI developed Portfolio

Status
Not open for further replies.
P

Philip S

Registered User
Messages
100
I am reposting this thread as the prior thread was removed due to discussion around the stocks included, which is not allowed on this site.

At the end of 2025, I simplified my portfolio into a simple set-and-forget portfolio. As a result, and for a bit of fun, I asked Google AI to design me a portfolio aimed at dividend growth. It could not include any U.S.-based ETFs, and the base currency would be in Euro. I put €300 in as the starting funds and don't plan to top up the account, but any dividends will be reinvested.

I plan to update this thread once a month, so I have a record of the movement myself and in case anyone is interested in wondering how an AI-generated portfolio would perform.

ETF1 25% starting balance €75.01
EFT2 25% starting balance €74.90
Company 1 10% starting balance €29.80
Company 2 10% starting balance €29.80
Company 3 10% starting balance €29.80
Company 4 10% starting balance €29.80
Company 5 5% starting balance €15
Company 6 5% starting balance €15
 
You’re taking gambling to the next level. I like it.

I assume that these are accumulating ETFs if you intend to re-invest dividends (wouldn’t make sense to pay taxes on dividends before re-investing them I imagine). In fact, I wonder why limiting the portfolio to dividend growth if you’re re-investing them anyway?

For added fun, in addition to showing how it actually performs, it would suggest to also ask Google AI to analyse its own portfolio performance and see whether it comes up with the correct numbers and correct comparison with the reference indexes.

Which reference indexes are you going to compare your portfolio against BTW?
 
Hi Philip

I am not sure what the exercise achieves? It's fun maybe, but if it outperforms some comparable index, so what?

I suggest asking Google to do it again and see if it produces the same results.

While we don't allow discussion of individual shares, how diversified is it? Has it raised any issues about your investment objectives?
 
Hi Brendan, mainly it is for a bit of fun. My main consideration would be how the AI-generated portfolio compares to my self-made portfolio and the S&P 500. My main investment objectives is to be as set and forget as i can. Which as their is a both ETF's and shares in here would be interesting to see if a rebalance is needed after certian period such as 6 months or a year.

I would be thinking of asking google to evaluate the portfolio after a while to see what its replies are.
 
Philip S said:
At the end of 2025, I simplified my portfolio into a simple set-and-forget portfolio. As a result, and for a bit of fun, I asked Google AI to design me a portfolio aimed at dividend growth. It could not include any U.S.-based ETFs, and the base currency would be in Euro. I put €300 in as the starting funds and don't plan to top up the account, but any dividends will be reinvested.
Click to expand...
If it's a "set and forget" portfolio, which I take to mean a long position with no regular income or other ongoing drawdowns, then it would surely be more tax efficient to select stocks that don't pay dividends and to focus on capital appreciation? That way you're only (eventually) dealing with CGT and not income tax on an ongoing basis? Dividends are still subject to income tax (and possibly PRSI/USC) even if reinvested.
 
Brendan Burgess said:
But I presume you can have a European ETF which tracks the S&P 500?
Click to expand...
But then the issue is 8 yearly deemed disposal and exit tax of 38% that applies to most ETFs?

Key Post - ETF Tax Changes - Summary of current position

Previous thread: https://www.askaboutmoney.com/threads/is-the-41-exit-tax-soon-to-be-scrapped-michael-mcgrath-to-review.230266/post-1949220 Thread to discuss Life Assurance changes: https://www.askaboutmoney.com/threads/life-assurance-exit-tax-laet-changes.241236/ This thread summarises the...
www.askaboutmoney.com
(That thread and many that it links to mention 41% because they predate the Budget 2026 reduction to 38%)
 
Regarding the tax issues. As the money in the fund is little, I have no issue with cashflowing the tax on the dividends. For the first few years, the tax on the dividends will be less than an extra value meal at McDonald's.
Regarding the 8-year rule, I am assuming based on current information that the deemed disposal will be gone by the time the 8 years are up.
 
Fortune said:
A good question, but I think the answer is "fun"
Click to expand...
Yeah. Seems like a bit of a pointless exercise to me to be honest. And I don't think that the tax issues can really be ignored if the idea is to compare results with alternative investment approaches.
 
Philip S said:
Regarding the 8-year rule, I am assuming based on current information that the deemed disposal will be gone by the time the 8 years are up.
Click to expand...
Why are you so confident, is it because Simon harris new minister for finance or have you more information?
 
I think it is an interesting enough idea just to see how it performs. It's only 300 euro so not gonna make or break Op. It is pointless but doing something for the sake of doing it and seeing what happens can be interesting.
 
Connard said:
doing something for the sake of doing it and seeing what happens can be interesting.
Click to expand...
It makes it a bit more interesting than just tracking the portfolio on paper, having a bit of skin in the game.

This is the same argument used for sports betting, isn't it?
 
The Google pics are AI? Whether it can outperform passive is an important question.
 
Why are you focusing on distributing ETFs and shares if you're reinvesting? The tax will be a massive drag on performance if you're a higher rate payer. Also with the amounts you're talking about then trading costs will also be a big drag. That's before the admin required tracking all of the dividends, paying the tax and potentially having to do a Form 11 if the ETF's aren't Irish domiciled. Sounds like the opposite of fun to me but have at it!
 
Djimi Traore said:
Why are you focusing on distributing ETFs and shares if you're reinvesting?
Click to expand...
Indeed...
ClubMan said:
If it's a "set and forget" portfolio, which I take to mean a long position with no regular income or other ongoing drawdowns, then it would surely be more tax efficient to select stocks that don't pay dividends and to focus on capital appreciation? That way you're only (eventually) dealing with CGT and not income tax on an ongoing basis? Dividends are still subject to income tax (and possibly PRSI/USC) even if reinvested.
Click to expand...
 
With online brokers like Trading212 you can set up automatic reinvestment of dividends without any trading fees.
 
Status
Not open for further replies.
Back
Top