Among the first ETFs to come on the market were from iShares. In this sample portfolio or “investment quiver” we see how these early securities are used to construct a portfolio. Both value and growth asset classes are covered for different cap sizes. SPY is included to cover the S&P 500 so there will be potential overlap or highly correlated assets. The overlap can be controlled by what percentage is set for the Max AA. I’m not paying too much attention to these percentages in this example.
International equities, domestic and international REITs, treasuries, and bond ETFs round out the asset class options.
iShares Sample Portfolio
Below is a sample $100,000 portfolio where Shares Held match the current recommendations. Five “off-ramp” securities are included for periods when equities are out-of-favor. Those five are: AGG, TLT, BWX, TIP, and PCY. One might add a corporate bond ETF to this list.
iShares Tranche LRPC Model Recommendations
With the model set to LRPC and the Max Number of Assets adjusted to seven (7), below are the current recommendations. Note how this equity portfolio ends up with a beta of nearly one (1). Equities are current in favor vs. bonds/treasuries which fall into the Sell zone.
I’m considering using this portfolio, or one very similar, with a portfolio or two. Now that Schwab and TDAmeritrade removed their commissions, we have a bit more freedom to built portfolios around a wide variety of ETFs. ETFs included in this sample are anything but fringe ETFs. All are quite popular for the asset classes they cover.
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