Meta etf portfolio11/24/2023 ![]() ![]() Each of these portfolios must form a "comprehensive core." This means that each must, at a minimum, include some US stocks, some developed market international stocks, some emerging markets, and some bonds.It's much easier to compare one firm's US small cap ETF to the same firm's emerging market ETF, or to compare one firm's US small cap ETF to another firm's US small cap ETF, than to try and compare one firm's US small cap ETF to the another firm's emerging market ETF. Information and its presentation/delivery are far more consistent coming from a single provider.This consistency can help prevent gaps and overlaps, with one notable example being how Korea is classified differently by Vanguard and iShares.Single brand ETF portfolios reflect a consistent approach to portfolio construction, often through using the same index provider.While one might expect the fund companies to be the ones providing branded ETF model portfolios, and independent advisers to mixing ETFs of different brands, there are three main reasons I wanted to create my own independently constructed, single brand ETF model portfolios: All the ETFs in each portfolio must come from the same brand.My approach to creating these ETF model portfolios are as follows: In this article, I share 12 different model portfolios reflecting 12 different investment philosophies, each of which I believe reflect an investment approach that each of 12 different ETF brands do better than the others. While I'm also a fan of keeping things simple and keeping costs low, I find it far more important to critically question and deviate from market cap weighting, and I'm willing to evaluate and accept higher ETF fees if I see a clear benefit from paying those fees. The one investment adviser I know who most vocally advocates simple portfolios of no more than four low-cost index funds is Rick Ferri, who shares several of his trademarked Core-4 portfolios freely on his website. ![]() I have so far never met an investor or professional investment adviser who would invest 100% of anyone's net worth (even his or her own) into just two ETFs, though the first model portfolio below might be the "easiest" for many to accept. ETF model portfolios can be simple or complicated, but I believe every investor should have at least one ETF model portfolio "handy." For individual investors who like to "keep it super simple" (KISS), having one "go-to" bond ETF and one stock ETF takes out all the "analysis paralysis" that may slow down the decision of where to invest a lump sum of short-term savings (into your bond ETF) or long-term savings (into your stock ETF) respectively. ![]()
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