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

General Dynamics Achieves #117 Analyst Rank, Surpassing Prudential Financial
Thu, Aug 28, 12:14 PM ET, by ETF Channel

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

IEMG, BAP, MBT, SCCO: ETF Inflow Alert
Thu, Aug 28, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IEMG, BAP, MBT, SCCO Exchange traded funds (ETFs) trade just ...

IYM, LYB, PX, FCX: Large Inflows Detected at ETF
Thu, Aug 28, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IYM, LYB, PX, FCX Exchange traded funds (ETFs) trade just ...

BLV: ETF Inflow Alert
Thu, Aug 28, 11:14 AM ET, by ETF Channel

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

IEF: Large Outflows Detected at ETF
Thu, Aug 28, 11:14 AM ET, by ETF Channel

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

Proshares Short 20+ Year Treasury Getting Very Oversold
Thu, Aug 28, 10:54 AM ET, by ETF Channel

In trading on Thursday, shares of the Proshares Short 20+ Year Treasury ETF (TBF) entered ...

iShares MSCI Switzerland Capped Breaks Below 200-Day Moving Average - Notable for EWL
Thu, Aug 28, 10:54 AM ET, by ETF Channel

In trading on Thursday, shares of the iShares MSCI Switzerland Capped ETF (EWL) crossed below ...

TTT Crowded With Sellers
Thu, Aug 28, 10:54 AM ET, by ETF Channel

In trading on Thursday, shares of the Proshares UltraPro Short 20+ Year Treasury ETF (TTT) ...

TMV Crosses Critical Technical Indicator
Thu, Aug 28, 10:54 AM ET, by ETF Channel

In trading on Thursday, shares of the Daily 20+ Year Treasury Bear 3x Shares ETF ...

11.7% of FPX Holdings Seeing Recent Insider Buys
Thu, Aug 28, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust US IPO Index Fund ...

Cullen/Frost Bankers a Top Ranked SAFE Dividend Stock With 2.6% Yield (CFR)
Thu, Aug 28, 9:54 AM ET, by ETF Channel

Cullen/Frost Bankers, Inc. (CFR) has been named to the Dividend Channel ''S.A.F.E. ...

CenturyLink a Top Socially Responsible Dividend Stock With 5.3% Yield (CTL)
Thu, Aug 28, 9:54 AM ET, by ETF Channel

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

Canadian Dollar Trust (FXC) Shares Cross Above 200 DMA
Wed, Aug 27, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Canadian Dollar Trust ETF (FXC) crossed above their ...

GDX, GG, ABX, NEM: ETF Inflow Alert
Wed, Aug 27, 10:54 AM ET, by ETF Channel

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

FXU, POM, TDS, GXP: Large Outflows Detected at ETF
Wed, Aug 27, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: FXU, POM, TDS, GXP Exchange traded funds (ETFs) trade just ...

QQQ, AAPL, MSFT, GOOG: Large Inflows Detected at ETF
Wed, Aug 27, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: QQQ, AAPL, MSFT, GOOG Exchange traded funds (ETFs) trade just ...

KRE, CIT, UBSI, HBAN: Large Inflows Detected at ETF
Wed, Aug 27, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: KRE, CIT, UBSI, HBAN Exchange traded funds (ETFs) trade just ...

iShares Russell 1000 Value ETF Experiences Big Inflow
Wed, Aug 27, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IWD, GE, JNJ, WFC Exchange traded funds (ETFs) trade just ...

CURE: Large Outflows Detected at ETF
Wed, Aug 27, 10:54 AM ET, by ETF Channel

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

IJH, URI, SLG, HSIC: Large Inflows Detected at ETF
Wed, Aug 27, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IJH, URI, SLG, HSIC Exchange traded funds (ETFs) trade just ...

VUG, FB, AMGN, AXP: ETF Inflow Alert
Wed, Aug 27, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VUG, FB, AMGN, AXP Exchange traded funds (ETFs) trade just ...

11.6% of FTHI Holdings Seeing Recent Insider Buys
Wed, Aug 27, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust High Income ETF (FTHI) ...

MO a Top 25 Dividend Giant With $3.11B Held By ETFs
Wed, Aug 27, 8:14 AM ET, by ETF Channel

Altria Group Inc (MO) has been named as a Top 25 ''Dividend Giant'' by ETF ...

Analog Devices a Top Socially Responsible Dividend Stock With 2.8% Yield (ADI)
Wed, Aug 27, 8:14 AM ET, by ETF Channel

Analog Devices, Inc. (ADI) has been named a Top Socially Responsible Dividend Stock by Dividend ...

PowerShares Cleantech Portfolio (PZD) Shares Cross Above 200 DMA
Tue, Aug 26, 3:54 PM ET, by ETF Channel

In trading on Tuesday, shares of the PowerShares Cleantech Portfolio ETF (PZD) crossed above their ...

Navient Achieves #139 Analyst Rank, Surpassing Dover
Tue, Aug 26, 11:54 AM ET, by ETF Channel

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

OIH, SLB, NOV, SDRL: Large Inflows Detected at ETF
Tue, Aug 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: OIH, SLB, NOV, SDRL Exchange traded funds (ETFs) trade just ...

FCG Makes Bullish Cross Above Critical Moving Average
Tue, Aug 26, 10:54 AM ET, by ETF Channel

In trading on Tuesday, shares of the First Trust ISE-Revere Natural Gas Index Fund ETF ...

NGE Crosses Critical Technical Indicator
Tue, Aug 26, 10:54 AM ET, by ETF Channel

In trading on Tuesday, shares of the MSCI Nigeria ETF (NGE) entered into oversold territory, ...

10.1% of FYC Holdings Seeing Recent Insider Buys
Tue, Aug 26, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust Small Cap Growth AlphaDEX ...

Home Depot a Top 25 Dividend Giant With 2.07% Yield (HD)
Tue, Aug 26, 8:34 AM ET, by ETF Channel

Home Depot Inc (HD) has been named as a Top 25 ''Dividend Giant'' by ETF ...

Shares of HYXU Now Oversold
Mon, Aug 25, 4:14 PM ET, by ETF Channel

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

Proshares USD Covered Bond Breaks Above 200-Day Moving Average - Bullish for COBO
Mon, Aug 25, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the Proshares USD Covered Bond ETF (COBO) crossed above ...

Swedish Krona Trust (FXS) Enters Oversold Territory
Mon, Aug 25, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the Swedish Krona Trust ETF (FXS) entered into oversold ...

UPV Makes Bullish Cross Above Critical Moving Average
Mon, Aug 25, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the Proshares Ultra FTSE Europe ETF (UPV) crossed above ...

Kinder Morgan Moves Up In Analyst Rankings, Passing Mallinckrodt
Mon, Aug 25, 11:54 AM ET, by ETF Channel

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

VDE, OXY, HAL, APA: ETF Outflow Alert
Mon, Aug 25, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: VDE, OXY, HAL, APA Exchange traded funds (ETFs) trade just ...

IJS, TQNT, THS, EPR: Large Outflows Detected at ETF
Mon, Aug 25, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: IJS, TQNT, THS, EPR Exchange traded funds (ETFs) trade just ...

VGT, CRM, CTSH, GLW: Large Inflows Detected at ETF
Mon, Aug 25, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: VGT, CRM, CTSH, GLW Exchange traded funds (ETFs) trade just ...

EDC: Large Outflows Detected at ETF
Mon, Aug 25, 11:24 AM ET, by ETF Channel

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

iShares U.S. Consumer Goods ETF Experiences Big Outflow
Mon, Aug 25, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: IYK, MO, MDLZ, KMB Exchange traded funds (ETFs) trade just ...

IHE, BMY, LLY, PRGO: ETF Outflow Alert
Mon, Aug 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IHE, BMY, LLY, PRGO Exchange traded funds (ETFs) trade just ...

PRF, USB, TRV, PRU: ETF Inflow Alert
Mon, Aug 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: PRF, USB, TRV, PRU Exchange traded funds (ETFs) trade just ...

TWM: ETF Outflow Alert
Mon, Aug 25, 11:14 AM ET, by ETF Channel

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

XME, AKS, X, STLD: Large Inflows Detected at ETF
Mon, Aug 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: XME, AKS, X, STLD Exchange traded funds (ETFs) trade just ...

18.1% of XOP Holdings Seeing Recent Insider Buys
Mon, Aug 25, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the SPDR S&P Oil & Gas Exploration ...

Wal-Mart Stores a Top Ranked SAFE Dividend Stock With 2.5% Yield (WMT)
Mon, Aug 25, 9:24 AM ET, by ETF Channel

Wal-Mart Stores, Inc. (WMT) has been named to the Dividend Channel ''S.A.F.E. ...

HCN a Top 25 Dividend Giant With $3.18B Held By ETFs
Mon, Aug 25, 9:24 AM ET, by ETF Channel

Health Care REIT Inc. (HCN) has been named as a Top 25 ''Dividend Giant'' by ...

ENOR Makes Notable Cross Below Critical Moving Average
Fri, Aug 22, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the iShares MSCI Norway Capped ETF (ENOR) crossed below ...

DSUM Makes Notable Cross Below Critical Moving Average
Fri, Aug 22, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the PowerShares Chinese Yuan Dim Sum Bond Portfolio ETF ...

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.