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:   Available   Commission   Core   EAFE   ETFdb   ETFs   Emerging   Expense   Fidelity   Free   IEMG   IXUS   International   MSCI   Market   Markets   Portfolio   Ratio   Stock   This   Ticker   Total   United   Weight   also   asset   class   component   core   covers   emerging   funds   iShares   income   into   investors   market   markets   popular   portfolio   risk   rounds   securities   simplicity   term   that   these   this   volatility   with

| More

MDIV Makes Bullish Cross Above Critical Moving Average
Wed, Dec 7, 11:14 AM ET, by ETF Channel

In trading on Wednesday, shares of the Multi-Asset Diversified Income Index Fund ETF (MDIV) crossed ...

XHB, WSM, TOL, BBBY: Large Outflows Detected at ETF
Wed, Dec 7, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: XHB, WSM, TOL, BBBY Exchange traded funds (ETFs) trade just ...

First Trust Tactical High Yield (HYLS) Shares Cross Above 200 DMA
Wed, Dec 7, 11:14 AM ET, by ETF Channel

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

Notable ETF Outflow Detected - IWM, AMD, MSCC, CW
Wed, Dec 7, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IWM, AMD, MSCC, CW Exchange traded funds (ETFs) trade just ...

WIP: ETF Outflow Alert
Wed, Dec 7, 10:54 AM ET, by ETF Channel

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

BWX: Large Outflows Detected at ETF
Wed, Dec 7, 10:54 AM ET, by ETF Channel

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

INDA: Large Outflows Detected at ETF
Wed, Dec 7, 10:54 AM ET, by ETF Channel

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

Conns Reaches Analyst Target Price
Wed, Dec 7, 9:14 AM ET, by ETF Channel

In recent trading, shares of Conns Inc (CONN) have crossed above the average analyst 12-month ...

Autodesk Reaches Analyst Target Price
Wed, Dec 7, 9:14 AM ET, by ETF Channel

In recent trading, shares of Autodesk Inc. (ADSK) have crossed above the average analyst 12-month ...

NFLX Crosses Above Average Analyst Target
Wed, Dec 7, 9:14 AM ET, by ETF Channel

In recent trading, shares of Netflix Inc. (NFLX) have crossed above the average analyst 12-month ...

CHMI Crosses Above Average Analyst Target
Wed, Dec 7, 9:14 AM ET, by ETF Channel

In recent trading, shares of Cherry Hill Mortgage Investment Corp (CHMI) have crossed above the ...

LendingClub Reaches Analyst Target Price
Wed, Dec 7, 9:14 AM ET, by ETF Channel

In recent trading, shares of LendingClub Corp (LC) have crossed above the average analyst 12-month ...

AVAV Crosses Above Average Analyst Target
Wed, Dec 7, 9:14 AM ET, by ETF Channel

In recent trading, shares of AeroVironment, Inc. (AVAV) have crossed above the average analyst 12-month ...

UTHR Crosses Above Average Analyst Target
Wed, Dec 7, 9:14 AM ET, by ETF Channel

In recent trading, shares of United Therapeutics Corp (UTHR) have crossed above the average analyst ...

ZG Crosses Above Average Analyst Target
Wed, Dec 7, 9:14 AM ET, by ETF Channel

In recent trading, shares of Zillow Group Inc (ZG) have crossed above the average analyst ...

GLDD Crosses Above Average Analyst Target
Wed, Dec 7, 9:14 AM ET, by ETF Channel

In recent trading, shares of Great Lakes Dredge & Dock Corp (GLDD) have crossed above ...

Why Intel is a Top 25 Dividend Giant (INTC)
Wed, Dec 7, 8:14 AM ET, by ETF Channel

Intel Corp (INTC) has been named as a Top 25 ''Dividend Giant'' by ETF Channel, ...

VSS Makes Bullish Cross Above Critical Moving Average
Tue, Dec 6, 4:24 PM ET, by ETF Channel

In trading on Tuesday, shares of the Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) crossed ...

Daily Small Cap Bear 3x Shares Getting Very Oversold
Tue, Dec 6, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the Daily Small Cap Bear 3x Shares ETF (TZA) ...

Zimmer Biomet Holdings Moves Up In Analyst Rankings, Passing Alliance Data Systems
Tue, Dec 6, 11:54 AM ET, by ETF Channel

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

Noteworthy ETF Outflows: ICF, BXP, VNO, GGP
Tue, Dec 6, 11:34 AM ET, by ETF Channel

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

EWY: Large Outflows Detected at ETF
Tue, Dec 6, 11:34 AM ET, by ETF Channel

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

ProShares Ultra Bloomberg Crude Oil Experiences Big Outflow
Tue, Dec 6, 11:34 AM ET, by ETF Channel

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

IWS, JCI, SYF, BHI: Large Inflows Detected at ETF
Tue, Dec 6, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: IWS, JCI, SYF, BHI Exchange traded funds (ETFs) trade just ...

TQQQ, KHC, CHTR, NFLX: Large Inflows Detected at ETF
Tue, Dec 6, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: TQQQ, KHC, CHTR, NFLX Exchange traded funds (ETFs) trade just ...

VYM, PG, CVX, VZ: Large Inflows Detected at ETF
Tue, Dec 6, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: VYM, PG, CVX, VZ Exchange traded funds (ETFs) trade just ...

Gold Miners ETF Experiences Big Outflow
Tue, Dec 6, 11:24 AM ET, by ETF Channel

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

ITOT, BAC, C, V: Large Inflows Detected at ETF
Tue, Dec 6, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: ITOT, BAC, C, V Exchange traded funds (ETFs) trade just ...

XLK, ACN, NVDA, HPE: ETF Outflow Alert
Tue, Dec 6, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: XLK, ACN, NVDA, HPE Exchange traded funds (ETFs) trade just ...

LogMeIn Reaches Analyst Target Price
Tue, Dec 6, 9:34 AM ET, by ETF Channel

In recent trading, shares of LogMeIn Inc (LOGM) have crossed above the average analyst 12-month ...

CLS Crosses Above Average Analyst Target
Tue, Dec 6, 9:34 AM ET, by ETF Channel

In recent trading, shares of Celestica, Inc. (CLS) have crossed above the average analyst 12-month ...

NSH Crosses Above Average Analyst Target
Tue, Dec 6, 9:34 AM ET, by ETF Channel

In recent trading, shares of NuStar GP Holdings LLC (NSH) have crossed above the average ...

CTAS Crosses Above Average Analyst Target
Tue, Dec 6, 9:34 AM ET, by ETF Channel

In recent trading, shares of Cintas Corporation (CTAS) have crossed above the average analyst 12-month ...

ICFI Crosses Above Average Analyst Target
Tue, Dec 6, 9:34 AM ET, by ETF Channel

In recent trading, shares of ICF International Inc (ICFI) have crossed above the average analyst ...

New Residential Investment Reaches Analyst Target Price
Tue, Dec 6, 9:34 AM ET, by ETF Channel

In recent trading, shares of New Residential Investment Corp (NRZ) have crossed above the average ...

PDC Energy Reaches Analyst Target Price
Tue, Dec 6, 9:34 AM ET, by ETF Channel

In recent trading, shares of PDC Energy Inc (PDCE) have crossed above the average analyst ...

Exelixis Reaches Analyst Target Price
Tue, Dec 6, 9:34 AM ET, by ETF Channel

In recent trading, shares of Exelixis Inc (EXEL) have crossed above the average analyst 12-month ...

The Gap Reaches Analyst Target Price
Tue, Dec 6, 9:24 AM ET, by ETF Channel

In recent trading, shares of The Gap, Inc. (GPS) have crossed above the average analyst ...

Customers Bancorp Reaches Analyst Target Price
Tue, Dec 6, 9:24 AM ET, by ETF Channel

In recent trading, shares of Customers Bancorp Inc (CUBI) have crossed above the average analyst ...

HFC Crosses Above Average Analyst Target
Tue, Dec 6, 9:14 AM ET, by ETF Channel

In recent trading, shares of HollyFrontier Corp. (HFC) have crossed above the average analyst 12-month ...

USM Crosses Above Average Analyst Target
Tue, Dec 6, 9:14 AM ET, by ETF Channel

In recent trading, shares of United States Cellular Corp (USM) have crossed above the average ...

CONSOL Energy Reaches Analyst Target Price
Tue, Dec 6, 9:14 AM ET, by ETF Channel

In recent trading, shares of CONSOL Energy Inc (CNX) have crossed above the average analyst ...

Milacron Holdings Reaches Analyst Target Price
Tue, Dec 6, 9:14 AM ET, by ETF Channel

In recent trading, shares of Milacron Holdings Corp (MCRN) have crossed above the average analyst ...

MLPJ's Holdings Could Mean 12% Gain Potential
Tue, Dec 6, 9:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Nordstrom Reaches Analyst Target Price
Tue, Dec 6, 9:14 AM ET, by ETF Channel

In recent trading, shares of Nordstrom, Inc. (JWN) have crossed above the average analyst 12-month ...

OLN Crosses Above Average Analyst Target
Tue, Dec 6, 9:14 AM ET, by ETF Channel

In recent trading, shares of Olin Corp. (OLN) have crossed above the average analyst 12-month ...

Hecla Mining Reaches Analyst Target Price
Tue, Dec 6, 9:14 AM ET, by ETF Channel

In recent trading, shares of Hecla Mining Co (HL) have crossed above the average analyst ...

SYY Named Top 25 SAFE Dividend Stock Increasing Payments For Decades
Tue, Dec 6, 8:14 AM ET, by ETF Channel

Sysco Corp (SYY) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying a ...

JPMorgan Chase a Top 25 Dividend Giant With 2.31% Yield (JPM)
Tue, Dec 6, 8:14 AM ET, by ETF Channel

JPMorgan Chase & Co (JPM) has been named as a Top 25 ''Dividend Giant'' by ...

Why Eaton is a Top Socially Responsible Dividend Stock (ETN)
Tue, Dec 6, 8:14 AM ET, by ETF Channel

Eaton Corp plc (ETN) has been named a Top Socially Responsible Dividend Stock by Dividend ...

  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 - 2016, 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 serious 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.