What does the ideal portfolio look like?

The check marks in the style boxes below indicate the asset classes that work best together in a portfolio optimized to capture the highest returns with the least volatility and risk. Your plan may offer other kinds of funds, but you only need the asset classes shown below to get the best results with the highest efficiency.

The Best Combination of Asset Classes:

A slight bias towards value tends to increase returns and reduce volatility.
 


        Aggressive
 Moderate Conservative
    %Equity
   100% 60%
40%
     %Bond    0%  40%  60%
Fund Category
           
             
US Large Blend
        11%  6%  4%
US Large Value
        11%  7%  4%
US Small Blend
       11%  7%  5%
US Small Value
       12%  7%  5%
US REITS        5%  3%  2%
International Large Blend
       9%  5%  3%
International Large Value
       9%  5%  4%
International Small Blend
        9%  6%  4%
International Small Value
       9%  6%  4%
International REITS
       5%  3%  2%
Emerging Markets        9%  5%  3%
Intermediate-Term Treasury Bonds
       0%  20%  30%
Short-Term Treasury Bonds
       0%  12%  18%
Inflation Protected Bonds (TIPS)
       0%  8%  12%
             
             
             
 
 
  As you can see the ideal asset classes include the following:
  • U.S. Large Blend
  • U.S. Large Value
  • U.S. Small Blend
  • U.S. Small Value
  • International Large Blend
  • International Large Value
  • International Small Blend
  • International Small Value
  • U.S. REITs
  • International REITs
  • Emerging Markets
  • Bond Fund Choices, preferably short-term bonds, intermediate-term bonds and TIPs .

 

DISCLAIMER:
This information is provided by Merriman, Inc., a registered investment advisor, and is believed to be from reliable sources, but no guarantee is made as to accuracy or completeness. The investment securities and strategies discussed are not suitable for all investors. Recommendations are of a general nature, not based on knowledge of any individual's specific needs or circumstances, and there is no intent to provide individual investment advisory, supervisory or management services. Unless otherwise noted, all reported or projected results (1) assume reinvestment of interest and dividends; (2) are net of any applicable management fees and transaction costs; and (3) do not reflect any effect of taxes. Past returns, whether actual or hypothetical, are not indicative of future results, which will be different from those of the past.