3 ideas for longterm ETF portfolios

Discussion in 'ETFs' started by Chuck Krug, Jan 29, 2009.

  1. 1)
    15% Vanguard Value Index (symbol VIVAX) (Tracks an index of undervalued stocks from the largest 750 U.S. companies)
    15% Vanguard Small Cap Value Index (VISVX) (Tracks an index of stocks of small, undervalued U.S. companies)
    13% iShares MSCI EAFE Value Index (EFV) (Tracks an index of stocks of large, undervalued foreign companies)
    13% iShares MSCI EAFE Small Cap Index (SCZ) (Tracks an index of stocks of small overseas companies)
    4% Vanguard Emerging Markets Stock Index (VEIEX) (Tracks an index of companies from developing nations)
    40% Vanguard Inflation-Protected Securities (VIPSX) (Invests at least 80% of assets in inflation-indexed bonds issued by the U.S. government)

    2)
    20% Vanguard Total Stock Market ETF (VTI) (Tracks a broad index of U.S. companies)
    20% Vanguard FTSE All-World ex-US ETF (VEU) (Tracks a broad index of stocks from developed and emerging foreign markets.)
    20% Vanguard Total Bond Market ETF (BND) (Tracks a broad index of high-quality U.S. bonds)
    10% Vanguard Capital Opportunity (VHCOX) (An actively managed fund that likes big growth companies down on their luck)
    10% Vanguard Emerging Markets ETF (VWO) (Tracks an index of stocks developing nations)
    10% Templeton Dragon (TDF) (Invests in stocks from China and nearby nations)
    10% Matthew's India (MINDX) (Invests in stocks from India)

    3)
    25% iShares Barclays Aggregate Bond ETF (AGG) (Tracks a broad index of high-quality U.S. bonds)
    25% iShares iboxx $ Investment Grade Corporate (LQD) (Tracks an index of the most liquid, long-term corporate bonds)
    10% Fidelity Floating Rate High Income (FFRHX) (Invests in floating rate bank loans that automatically adjusts to rising short-term interest rates. It offers additional inflation hedge)
    10% iShares MBS Fixed Income (MBB) (Tracks a broad index mortgage-backed securities)
    7.5% SPDR DB International Govt Inflation-Protected Bond (WIP) (Invests in an index of non-U.S., inflation-linked bonds)
    7.5% PowerShares Emerging Markets Sovereign Debt (PCY) (Tracks an index of emerging markets government debt)
    7.5% iShares Barclays TIPS Bond (TIP) (Tracks an index of inflation-protected, U.S. Treasury securities)
    7.5% iShares Iboxx $ High Yield Corporate Bond (HYG) (Tracks an index of high yield bonds)

    http://www.kiplinger.com/columns/fundwatch/archive/2009/fundwatch0127.htm
     
  2. 4) 100% S&P-500 Index Fund. It has all of the "diversification" one could "need". :cool:
     
  3. the USA is 25% of the world's economic activity and the dollar is suspect. Even though many of the 500 are multinational, it is still good to hold international portfolios.

    In addition, it leaves out midcap and small cap.

    The Wilshire is a better hold, if just one index.
     
  4. TZ---You're mostly correct. However, if nearly all markets and sectors are correlated, diversification becomes unnecessary. :)
     
  5. What's the goal of each portfolio?
     
  6. He wants his account statement to have the "appearance" of activity and complexity. :cool:
     
  7. LEAPup

    LEAPup

    Exactly! What is the goal?
     
  8. alexg

    alexg

    Can't agree more. If you just want to be "in the market," have the performance of the broad market mutual funds, an S&P ETF (I like SPY) is the way to go.
     
  9. What about commodities, bonds and cash?
     
  10. How about this 1?

    (40%) vtsax - emulates wilshire 5000 broad domestic
    (05%) vtmsx - emulates russell 2000 small cap
    (10%) veusx - western europe, not true index but close
    (05%) vpacx - pacific, again not true index but close
    (25%) vbtlx - broad bond fund - 4.77% return, good for bond allocation
    (05%) vwehx - corporate bond exposure
    (05%) vnq - reit fund
    (05%) vwo - etf emerging markets

    Sorry for the original poster of this allocation, I would give you credit, but I forgot your name.
     
    #10     Feb 9, 2009