A new all-ETF model portfolio is now available to ETFdb Pro members; the Aggressive ETFdb Portfolio offers a broad-based collection of ETFs constructed with bullish investors in mind who are willing and able to stomach great amounts of volatility, in exchange for potentially lucrative returns.
A high risk/return investment strategy focuses on heavy allocation to equities, spread out across all corners of the globe, and minimal exposure to “safer” fixed income holdings. Moreover, an aggressive approach may have some benefits over more conservative portfolios given it’s inclusion of mid and small cap size companies, which are often times overlooked altogether given the sheer popularity of large cap-heavy ETFs. Mid/small cap size equities bear a greater amount of risk when compared to their large cap counterparts, however this asset class offers the potential to improve risk-adjusted returns over the long-run and from a historical perspective, “smaller” companies tend to emerge stronger coming out of economic downturns.
The new Aggressive ETFdb Portfolio is designed for investors with a high risk tolerance who want to build a diversified portfolio that is positioned to do well as the global economic recovery picks up speed. Equities account for 80% of the total portfolio and allocation is tilted towards large cap stocks, although as a whole exposure is very well diversified across all market levels, industries, and economic regions. The fixed income portion of this portfolio stays true to the “aggressive” theme as well, since there is no allocation to “safe” U.S. Treasury holdings. Instead, this ETFdb portfolio holds emerging market bond funds, an asset classes with a sizable degree of risk and the potential for uncorrelated returns. Investors who are a bit more conservative, but still eager to profit from the ongoing economic recovery, should consider the Moderate ETFdb Portfolio as it strikes a nice balance between risk and reward.