Sample Portfolios

EDITOR'S NOTE: These sample portfolios are no longer being updated at FundAdvice.com for external use. The Merriman Research Team continues to provide portfolio guidance for our clients. If you are interested in meeting with a Merriman advisor, please click here. We will continue to display these portfolios through the end of June, at which time they will be removed from the site.

Last update: November 1st, 2010

At Merriman, we have always been committed to helping both clients and non-clients through sound financial educational materials.

We know that choosing the proper assets and maintaining consistent investment discipline can be challenging to many people. Investors often make emotional decisions in response to changing markets, economic and political trends – and those emotional decisions can be very counterproductive in the long run.

We believe that most investors could benefit greatly from having  professional advice and, where appropriate, professional investment management. A good financial advisor can serve as a guide, a coach and a source of encouragement during good times and bad times.

That is exactly the business we are in. If you would like to pursue that possibility, the place to start is a consultation with one of our financial advisors. This consultation, which has no cost or obligation, can be done by telephone or in person at our Seattle office.

To see if you qualify for a consultation, please go here . If you are a good fit for Merriman and we are a good fit for you, we would love to have you as a client.

All that said, on this page you will find suggestions for sample portfolios using Exchange Traded Funds (ETFs) and Vanguard mutual funds. These sample portfolios are not the same as those we use for clients. However, they reflect the academic research, philosophy and principles we use to build portfolios for Merriman clients.

In the past, we suggested portfolios constructed exclusively from no-load mutual funds.  We believe that ETFs are increasingly attractive for their lower costs and greater tax efficiency.

 

 

SAMPLE ETF PORTFOLIO
SAMPLE VANGUARD TAX-DEFERRED PORTFOLIOS
SAMPLE VANGUARD TAX-MANAGED EQUITY PORTFOLIO
SAMPLE VANGUARD MONTHLY INCOME PORTFOLIO
SAMPLE EMERGENCY FUND

ASSET CLASS ABBREVIATIONS

Large Cap Blend
LCB
Large Cap Growth LCG
Large Cap Value
LCV
Mid Cap Blend
MCB
Mid Cap Growth
MCG
Mid Cap Value
MCV
Small Cap Blend
SCB
Small Cap Growth SCG
Small Cap Value
SCV
Real Estate Investment Trust
REIT
International Large Cap Blend
Int'l LCB
International Large Cap Growth
Int'l LCG
International Large Cap Value
Int'l LCV
International Small Cap Blend
Int'l SCB
International Small Cap Growth
Int'l SCG
International Small Cap Value
Int'l SCV
International Real Estate Investment Trust
Int'l REIT
Emerging Markets
EM
Short Term Bond
ST Bond
Intermediate Term Bond
IT Bond
Long Term Bond
LT Bond
Treasury Inflation Protected Securities
TIPS
High Yield Bond HY Bond
Mortgage Bond
MBS

 

This table shows three different suggested asset allocations for stocks and bonds, for Aggressive, Moderate and Conservative portfolios, which will be followed in the tables below. 

 

Aggressive

Moderate

Conservative

% Equity

100%

60%

40%

% Bond

0%

40%

60%

 
   
 

Any change to any recommended portfolio is not a recommendation to sell mutual funds or ETFs you may own.  Before you do that, you should carefully consider the tax consequences, purchase fees and any other relevant factors.

 

  SAMPLE ETF PORTFOLIO
Fund Name
Symbol Fund Category
Aggressive Moderate Conservative
Schwab U.S. Large-Cap
(SCHX) LCB 11.25% 6.75% 4.50%
Vanguard Value VIPERs (VTV) LCV 11.25% 6.75%
4.50%
Schwab U.S. Small Cap
(SCHA) SCB 11.25%
6.75%
4.50%
Vanguard Small Cap Value VIPERs (VBR) SCV 11.25%
6.75%
4.50%
Vanguard REIT Index ETF (VNQ) REIT 5.00% 3.00%
2.00%
Schwab International Equity
(SCHF) Int'l LCB 9.00%
5.40%
3.60%
iShares MSCI EAFE Value Index
(EFV)
Int'l LCV 9.00%
5.40%
3.60%
Vanguard FTSE All-World ex-US Small-Cap Index
(VSS)
Int'l SCB 9.00%
5.40%
3.60%
WisdomTree Int'l Small Cap Div Fund (DLS)
Int'l SCV 9.00%
5.40%
3.60%
Schwab Emerging Markets Equity ETF
(SCHE)
EM 9.00% 5.40%
3.60%
Vanguard Global ex-U.S. Real Estate
(VNQI)
Int'l REIT 5.00%
3.00%
2.00%
iShares Barclays 1-3 yr (SHY) ST Bond
0.00%
12.00%
18.00%
iShares Barclays 3-7 yr Treasury (IEI)
IT Bond 0.00%
20.00%
30.00%
iShares Barclays TIPS Bond
(TIP)
TIPS 0.00%
8.00%
12.00%
           
     Total 100.0%
100.0%
100.0%
Minimum Suggested Initial Investment
    $11,000
$14,000
$14,000
SAMPLE STARTER PORTFOLIO (less than $14,000)
Fund Name
Symbol Fund Category
Aggressive
Moderate
Conservative
Vanguard Total World Stock ETF
(VT)
Global
100.0% N/A
N/A

   

Before buying or selling any mutual fund, please check the fund company website to see if there are purchase or redemption fees, all of which may not be listed here, or may not be up-to-date.

 

SAMPLE VANGUARD TAX-DEFERRED PORTFOLIOS
Fund Name
Symbol
Fund Category
Aggressive
Moderate
Conservative
Vanguard 500 Index (VFINX)
LCB
10.00% 6.00%
4.00%
Vanguard Value Index (VIVAX) LCV 10.00% 6.00% 4.00%
Vanguard Small Cap Index (NAESX) SCB 10.00% 6.00% 4.00%
Vanguard Small Cap Value Index (VISVX) SCV 10.00% 6.00% 4.00%
Vanguard REIT Index (1)
(VGSIX) REIT 10.00% 6.00% 4.00%
Vanguard Developed Markets Index (VDMIX) Int'l LCB
10.00% 6.00% 4.00%
Vanguard International Value (VTRIX Int'l LCV 20.00%
12.00%
8.00%
Vanguard FTSE All-World ex-US Small-Cap Index (2) (VFSVX) Int'l SCB 10.00% 6.00% 4.00%
Vanguard Emerging Market Index (3)
(VEIEX) EM 10.00% 6.00% 4.00%
Vanguard Short-Term Treasuries
(VFISX) ST Bond
0.00% 12.00% 18.00%
Vanguard Intermediate-Term US Treasuries
(VFITX) IT Bond
0.00% 20.00% 30.00%
Vanguard Inflation-Protected Securities
(VIPSX) TIPS 0.00% 8.00% 12.00%
           
     Total 100.0% 100.0% 100.0%
Minimum Initial Investment (based on fund minimums)
    $30,000
$50,000
$75,000
SAMPLE VANGUARD TAX-MANAGED EQUITY PORTFOLIO (4)
Fund Name
Symbol
Fund Category
Aggressive Moderate (5)
Conservative (5)
Vanguard 500 Index (VFINX) LCB 12.50%
N/A
N/A
Vanguard Value Index
(VIVAX) LCV
12.50%
N/A
N/A
Vanguard Small Cap Index
(NAESX) SCB
12.50%
N/A
N/A
Vanguard Small Cap Value Index
(VISVX) SCV
12.50%
N/A
N/A
Vanguard Developed Markets Index (VDMIX)
Int'l LCB 10.00%
N/A
N/A
Vanguard International Value (VTRIX) Int'l LCV 20.00%
N/A
N/A
Vanguard FTSE All-World ex-US Small-Cap Index (2) (VFSVX Int'l SCB 10.00%
N/A
N/A
Vanguard Emerging Market Index (3) (VEIEX)
EM 10.00%
N/A
N/A
           
    Total
100.0%
N/A
N/A
Minimum Initial Investment (based on fund minimums)
    $30,000
N/A
N/A

(1) The Vanguard REIT fund has a 1% fee on sales of shares held less than one year.

(2) The Vanguard FTSE All-World ex-US Small-Cap Index fund has purchase and redemption fees of 0.75%.

(3) Vanguard Emerging Market Index fund applies a purchase fee of 0.50% and a redemption fee of 0.25%

(4) If you hold the Vanguard Tax-Managed International Fund, you should know your holding period before making any trading decisions. This fund applies a 1% redemption fee if held less than five years. Effective April 28, 2011 the 1% redemption fee on sales of shares held less than five years was removed for the TM Balanced, TM Capital Appreciation, TM Growth and Income and TM Small Cap Funds.

(5) We don't have the recommendation for the Vanguard Tax-Managed Moderate and Conservative portfolios since the tax situation varies from person to person.

 

SAMPLE VANGUARD MONTHLY INCOME: BUY-AND-HOLD (6)
Fund Name
Symbol
Fund Category
Allocation
Vanguard Short-Term Investment Grade (VFSTX)
ST Bond
25.00%
Vanguard Intermediate-Term Investment Grade (VFICX )
IT Bond
25.00%
Vanguard GNMA
(VFIIX) MBS
25.00%
Vanguard High-Yield Corporate
(VWEHX) HY Bond
25.00%
       
    Total
100.0%
Minimum Initial Investment (based on fund minimums)
    $12,000

 

(6) We recommend managing portfolios on a total rate of return basis, with the total return coming from interest on bonds, dividends on stocks, and potential price appreciation from the securities in the portfolio.  Withdrawals from a total return portfolio may come from both income and principal.  The monthly income portfolio is designed for those investors who want to generate income from the portfolio, without withdrawing any principal.  In order to generate reasonable levels of income, we are including allocations to investment grade corporate bonds, high yield corporate bonds, and Ginnie Mae mortgage securities, bond types which are not included in our total return portfolios.  The Vanguard High-Yield Corporate Fund assesses a 1% fee on shares held less that one year.

 
SAMPLE EMERGENCY FUND: BUY-AND-HOLD
Fund Name
Symbol
Fund Category Allocation
Vanguard Prime Money Market
(VMMXX)
Money Market
First three to six months worth of living expenses.
Vanguard Short Term Investment Grade Bond (VFSTX
ST Bond Funds in excess of three to six months of living expenses.
Minimum Initial Investment (based on fund minimums)     $3,000
 
 

 
 
 

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