Category: Global Index

Portfolio: Global Index

An indexed portfolio is one of the most efficient methods of providing an investor the broadest exposure to the market for targeted or smaller size accounts.

The table in Figure 1 is an asset allocation consideration that uses individual index securities for global coverage. The allocation amongst the index securities is determined by using the relative fair value for each domestic sector, domestic market capitalization, international market and bond classification. Overvalued areas have a lower allocation while undervalued areas receive a higher allocation. Bond allocations are determined on a market weight, relative yield and long-term average return basis.

Portfolio: Global Index

Financials reduced by 0.7 percentage points, Consumer Staples increased by 0.5 points, Telecomm increased by 0.3 points and Utilities reduced by 0.2 points.

Global Index (ETF) Portfolio Considerations (American View)

Changes in asset allocation considerations since last report: all of the changes in this report are domestic in nature and influence the Opportunity Target more than the Stable Target.

Global Index Portfolio Considerations April 2017

An indexed portfolio is one of the most efficient methods of providing an investor the broadest exposure to the market for targeted or smaller size accounts. A portfolio under $10,000 may be well served in terms of market return and reduced management fees as well as lower transaction costs by using a single Large Cap index such as IVV, a security that mimics the S&P 500 Index. Once the portfolio reaches a level greater than $10,000 and under $250,000, an expanded investment footprint may be the best vehicle.