Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

3 Simple All-ETF “Core” Portfolios

Thu, Nov 1, 12:15 PM ET, by Michael Johnston

The proliferation of exchange-traded funds over the past few years has opened up the doors to previously difficult-to-reach corners of the global market, making it easy and cost-effective for mainstream investors to tap into virtually any asset class. While the current lineup of nearly 1,500 ETFs is likely intimidating at first glance, it’s important to remember that these financial instruments were created with simplicity in mind. ETFs were originally designed for buy-and-hold investors; as such, these vehicles are meant to simplify the investing process by offering access to diversified baskets of securities through a single ticker [see also Free 7 Simple & Cheap ETF Model Portfolios].

The largest issuer by total assets, iShares, has taken the themes of simplicity and cost-efficiency to a new level with its recent launch of the “Core Series” of ETFs. This initiative includes the launch of several new funds along with tweaks to the names and prices of some popular existing iShares ETFs, ultimately offering a greater variety of “core” building block ETFs suited for long-term, buy-and-hold investors [see How To Pick The Right ETF Every Time].

As such, below we outline three simple (and inexpensive) ETF model portfolios built around the iShares “core” lineup of funds:

Total Market Simplicity

Ticker ETF Weight Expense Ratio Commission Free
ITOT Core S&P Total U.S. Stock Market ETF 35% 0.07% Not Available
IXUS Core MSCI Total International Stock ETF 35% 0.16% Not Available
AGG Core Total U.S. Bond Market ETF 30% 0.08% Fidelity, TD Ameritrade
Total 100% 0.10%

This portfolio covers every major asset class, and it does so with only three tickers. ITOT covers almost the entire U.S. equity market as it is comprised of the S&P 500, MidCap 400 and SmallCap 600 Indexes. IXUS covers foreign stocks outside of the United States, and its portfolio spans across both developed and emerging markets. The final component, AGG, is the core bond holding, which can serve to tame overall volatility as it focuses on U.S. investment grade debt notes from the government as well as corporations.

Ex-U.S. Portfolio

Ticker ETF Weight Expense Ratio Commission Free
IEFA Core MSCI EAFE ETF 60% 0.14% Not Available
IEMG Core MSCI Emerging Markets ETF 40% 0.18% Not Available
Total 100% 0.15%

Investors looking to steer clear of domestic securities given the frustratingly slow recovery at home may wish to undertake the ex-U.S. approach this portfolio offers. IEFA fills the need for developed market exposure as it tracks the popular MSCI EAFE Investable Market Index; this benchmark is comprised primarily of large cap securities from the United Kingdom and Japan. IEMG on the other hand fills the need for “high-growth” opportunities, tapping into emerging markets like China, South Korea, Taiwan, Brazil and South Africa [see also Euro Free Europe ETFdb Portfolio].

International Bull Porfolio

Ticker ETF Weight Expense Ratio Commission Free
IJR Core S&P Small-Cap ETF 40% 0.16% Fidelity, TD Ameritrade
IEMG Core MSCI Emerging Markets ETF 40% 0.18% Not Available
ILTB Core Long-Term U.S. Bond ETF 20% 0.12% Not Available
Total 100% 0.16%

This portfolio is designed for long-term investors who are willing to take on more risk in exchange for attractive upside potential. IJR rounds out exposure to the U.S. small cap market, an asset class that has demonstrated the potential to deliver better risk-adjusted returns than large cap counterparts during certain environments. IEMG taps into emerging markets, another asset class that features a lucrative risk/return profile for those with a stomach for volatility. ILTB rounds out the fixed income component, and its focus on longer-term U.S. bonds offers an attractive source of current income. However, this ETF does bear greater interest rate risk than its shorter-term counterpart ISTB [see also Greedy When Others Are Fearful ETFdb Portfolio].

Follow me on Twitter @SBojinov

[For more ETF analysis, make sure to sign up for our free ETF newsletter or try a free seven day trial to ETFdb Pro]

Disclosure: No positions at time of writing.

Click here to read the original article on ETFdb.com.


SDI Glossary: "Bond" Definition
SDI Glossary: "price" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "iShares" Definition
SDI Glossary: "Stock" Definition
This Article's Word Cloud:   Ameritrade   Available   Bond   Commission   Core   ETFdb   ETFs   Expense   Free   IEMG   ILTB   ITOT   MSCI   Market   Portfolio   Ratio   Stock   This   Ticker   Total   Weight   also   asset   class   core   covers   current   emerging   fills   funds   hold   iShares   into   investors   market   markets   need   offering   popular   portfolio   risk   rounds   securities   simplicity   term   that   this   three   volatility   with

| More

Danaher Moves Up In Analyst Rankings, Passing Anadarko Petroleum
Tue, Jul 22, 1:14 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

RWM: ETF Inflow Alert
Tue, Jul 22, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: RWM Exchange traded funds (ETFs) trade just like stocks, but ...

SPDR Dow Jones International Real Estate ETF Experiences Big Inflow
Tue, Jul 22, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: RWX, BAM.A.CA, REI.UN.CA, HR.UN.CA Exchange traded funds (ETFs) trade just ...

FXZ, TMST, RYAM, FCX: ETF Inflow Alert
Tue, Jul 22, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: FXZ, TMST, RYAM, FCX Exchange traded funds (ETFs) trade just ...

VB, SLXP, FL, AJG: ETF Inflow Alert
Tue, Jul 22, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: VB, SLXP, FL, AJG Exchange traded funds (ETFs) trade just ...

SPXU: ETF Inflow Alert
Tue, Jul 22, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: SPXU Exchange traded funds (ETFs) trade just like stocks, but ...

EFA, AI, CS, AIR: Large Inflows Detected at ETF
Tue, Jul 22, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: EFA, AI, CS, AIR Exchange traded funds (ETFs) trade just ...

18.0% of FDM Holdings Seeing Recent Insider Buys
Tue, Jul 22, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust Dow Jones Select MicroCap ...

CAT a Top 25 Dividend Giant With $3.51B Held By ETFs
Tue, Jul 22, 8:14 AM ET, by ETF Channel

Caterpillar Inc. (CAT) has been named as a Top 25 ''Dividend Giant'' by ETF Channel, ...

PepsiCo Inc. a Top Socially Responsible Dividend Stock With 2.9% Yield (PEP)
Tue, Jul 22, 8:14 AM ET, by ETF Channel

PepsiCo Inc. (PEP) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, ...

Notable Two Hundred Day Moving Average Cross - IEV
Mon, Jul 21, 5:24 PM ET, by ETF Channel

In trading on Monday, shares of the iShares Europe ETF (IEV) crossed below their 200 ...

Google Takes Over #14 Spot From Facebook
Mon, Jul 21, 12:14 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

See How Pfizer Ranks Among Analysts' Top Dow 30 Picks
Mon, Jul 21, 12:14 PM ET, by ETF Channel

A study of analyst recommendations at the major brokerages shows that Pfizer Inc (PFE) is ...

iShares MSCI Germany Small-Cap Getting Very Oversold
Mon, Jul 21, 11:34 AM ET, by ETF Channel

In trading on Monday, shares of the iShares MSCI Germany Small-Cap ETF (EWGS) entered into ...

WisdomTree Barclays U.S. Aggregate Bond Negative Duration Fund (AGND) Enters Oversold Territory
Mon, Jul 21, 11:34 AM ET, by ETF Channel

In trading on Monday, shares of the WisdomTree Barclays U.S. Aggregate Bond Negative Duration Fund ...

Shares of HYLS Now Oversold
Mon, Jul 21, 11:34 AM ET, by ETF Channel

In trading on Monday, shares of the First Trust Tactical High Yield ETF (HYLS) entered ...

JDST Crowded With Sellers
Mon, Jul 21, 11:34 AM ET, by ETF Channel

In trading on Monday, shares of the Daily Junior Gold Miners Index Bear 3x Shares ...

RSP, VRTX, WMB, COV: Large Inflows Detected at ETF
Mon, Jul 21, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: RSP, VRTX, WMB, COV Exchange traded funds (ETFs) trade just ...

12.7% of VBR Holdings Seeing Recent Insider Buys
Mon, Jul 21, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the Vanguard Small-Cap Value ETF (VBR) shows ...

Procter & Gamble a Top Socially Responsible Dividend Stock With 3.2% Yield (PG)
Mon, Jul 21, 9:24 AM ET, by ETF Channel

Procter & Gamble Co. (PG) has been named a Top Socially Responsible Dividend Stock by ...

Why Public Storage is a Top 25 Dividend Giant (PSA)
Mon, Jul 21, 9:24 AM ET, by ETF Channel

Public Storage (PSA) has been named as a Top 25 ''Dividend Giant'' by ETF Channel, ...

Shares of SSG Now Oversold
Fri, Jul 18, 4:57 PM ET, by ETF Channel

In trading on Friday, shares of the Proshares UltraShort Semiconductors ETF (SSG) entered into oversold ...

Guggenheim Enhanced Short Duration (GSY) Shares Cross Below 200 DMA
Fri, Jul 18, 4:57 PM ET, by ETF Channel

In trading on Friday, shares of the Guggenheim Enhanced Short Duration ETF (GSY) crossed below ...

GERJ Makes Notable Cross Below Critical Moving Average
Fri, Jul 18, 4:57 PM ET, by ETF Channel

In trading on Friday, shares of the Germany Small-Cap ETF (GERJ) crossed below their 200 ...

UPRO, ADBE, AES, AET: Large Outflows Detected at ETF
Fri, Jul 18, 11:32 AM ET, by ETF Channel

Symbols mentioned in this story: UPRO, ADBE, AES, AET Exchange traded funds (ETFs) trade just ...

VPL, BHP, WBK, MTU: Large Inflows Detected at ETF
Fri, Jul 18, 11:32 AM ET, by ETF Channel

Symbols mentioned in this story: VPL, BHP, WBK, MTU Exchange traded funds (ETFs) trade just ...

FXE: ETF Outflow Alert
Fri, Jul 18, 11:32 AM ET, by ETF Channel

Symbols mentioned in this story: FXE Exchange traded funds (ETFs) trade just like stocks, but ...

Johnson & Johnson a Top Ranked SAFE Dividend Stock With 2.8% Yield (JNJ)
Fri, Jul 18, 9:20 AM ET, by ETF Channel

Johnson & Johnson (JNJ) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying ...

McDonald's a Top Socially Responsible Dividend Stock With 3.3% Yield (MCD)
Fri, Jul 18, 9:20 AM ET, by ETF Channel

McDonald's Corp (MCD) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, ...

BSJG Crowded With Sellers
Thu, Jul 17, 4:56 PM ET, by ETF Channel

In trading on Thursday, shares of the Guggenheim BulletShares 2016 High Yield Corporate Bond ETF ...

FYX Makes Notable Cross Below Critical Moving Average
Thu, Jul 17, 4:56 PM ET, by ETF Channel

In trading on Thursday, shares of the First Trust Small Cap Core AlphaDEX Fund ETF ...

GUR Makes Notable Cross Below Critical Moving Average
Thu, Jul 17, 4:56 PM ET, by ETF Channel

In trading on Thursday, shares of the SPDR S&P Emerging Europe ETF (GUR) crossed below ...

SUB Makes Bullish Cross Above Critical Moving Average
Thu, Jul 17, 4:56 PM ET, by ETF Channel

In trading on Thursday, shares of the iShares Short-Term National AMT-Free Muni Bond ETF (SUB) ...

HYG Makes Notable Cross Below Critical Moving Average
Thu, Jul 17, 4:56 PM ET, by ETF Channel

In trading on Thursday, shares of the iShares iBoxx $ High Yield Corporate Bond ETF ...

Brazil Small-Cap Breaks Below 200-Day Moving Average - Notable for BRF
Thu, Jul 17, 4:56 PM ET, by ETF Channel

In trading on Thursday, shares of the Brazil Small-Cap ETF (BRF) crossed below their 200 ...

FDM Makes Notable Cross Below Critical Moving Average
Thu, Jul 17, 4:56 PM ET, by ETF Channel

In trading on Thursday, shares of the First Trust Dow Jones Select MicroCap Index Fund ...

IYJ, CAT, ACN, EMR: Large Outflows Detected at ETF
Thu, Jul 17, 12:32 PM ET, by ETF Channel

Symbols mentioned in this story: IYJ, CAT, ACN, EMR Exchange traded funds (ETFs) trade just ...

ESR Crosses Below Key Moving Average Level
Thu, Jul 17, 12:32 PM ET, by ETF Channel

In trading on Thursday, shares of the iShares MSCI Emerging Markets Eastern Europe ETF (ESR) ...

SPDR S&P Russia Breaks Below 200-Day Moving Average - Notable for RBL
Thu, Jul 17, 12:32 PM ET, by ETF Channel

In trading on Thursday, shares of the SPDR S&P Russia ETF (RBL) crossed below their ...

HYXU Crosses Below Key Moving Average Level
Thu, Jul 17, 12:32 PM ET, by ETF Channel

In trading on Thursday, shares of the iShares Global ex USD High Yield Corporate Bond ...

PHO Crosses Below Key Moving Average Level
Thu, Jul 17, 12:32 PM ET, by ETF Channel

In trading on Thursday, shares of the PowerShares Water Resources Portfolio ETF (PHO) crossed below ...

ICF, HCN, HCP, VNO: Large Inflows Detected at ETF
Thu, Jul 17, 12:32 PM ET, by ETF Channel

Symbols mentioned in this story: ICF, HCN, HCP, VNO Exchange traded funds (ETFs) trade just ...

EMC Takes Over #41 Spot From Alexion Pharmaceuticals
Thu, Jul 17, 12:32 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

United Technologies a Top 25 Dividend Giant With 2.07% Yield (UTX)
Thu, Jul 17, 10:17 AM ET, by ETF Channel

United Technologies Corp. (UTX) has been named as a Top 25 ''Dividend Giant'' by ETF ...

VZ Named A Top Socially Responsible Dividend Stock
Thu, Jul 17, 10:17 AM ET, by ETF Channel

Verizon Communications Inc (VZ) has been named a Top Socially Responsible Dividend Stock by Dividend ...

FKO Crosses Below Key Moving Average Level
Wed, Jul 16, 5:17 PM ET, by ETF Channel

In trading on Wednesday, shares of the First Trust South Korea AlphaDEX Fund ETF (FKO) ...

First Trust Large Cap Core AlphaDEX Fund Experiences Big Outflow
Wed, Jul 16, 11:32 AM ET, by ETF Channel

Symbols mentioned in this story: FEX, MU, NFX, APA Exchange traded funds (ETFs) trade just ...

iShares 1-3 Year International Treasury Bond (ISHG) Shares Cross Below 200 DMA
Wed, Jul 16, 11:32 AM ET, by ETF Channel

In trading on Wednesday, shares of the iShares 1-3 Year International Treasury Bond ETF (ISHG) ...

GDX, GG, ABX, NEM: ETF Outflow Alert
Wed, Jul 16, 11:32 AM ET, by ETF Channel

Symbols mentioned in this story: GDX, GG, ABX, NEM Exchange traded funds (ETFs) trade just ...

FTA, NOV, JBL, ADT: ETF Outflow Alert
Wed, Jul 16, 11:32 AM ET, by ETF Channel

Symbols mentioned in this story: FTA, NOV, JBL, ADT Exchange traded funds (ETFs) trade just ...

Related videos | all videos »
  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

3 Simple All-ETF “Core” Portfolios | Self Directed Investor | Copyright © 2008 - 2014, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of over 1000 individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.