The Financials Free ETFdb Portfolio is now available to ETFdb Pro members and those with a free 7-day trial of the Pro subscription. This new portfolio, one of more than 30 all-ETF model portfolios available at ETFdb.com, is designed for risk-averse investors who wish to construct a well rounded portfolio that generates a modest current income, while also entirely avoiding the financials sector. The investment thesis behind the Financials Free ETFdb Portfolio may appeal to those who are bullish on the global economic recovery, but are fearful that exposure to the financials sector could be a drag on overall portfolio returns as this corner of the market remains plagued with uncertainty.
This ETFdb portfolio is geared towards value investors who prefer dividend-paying securities, while also enjoying the “safety cushion” of a hefty fixed income allocation. The portfolio’s ex-financials investment strategy utilizes a pair of unique ETFs that are designed to deliver the desired exposure; the equity component of the Financials Free ETFdb Portfolio offers exposure to both foreign and domestic high-yield stocks outside of the financials sector. Investors should note that excluding financial stocks may lower portfolio volatility over time, although it could also result in some missed opportunities, seeing as how the financials sector is often times associated with both high risks and lucrative rewards.
The Financials Free ETFdb Portfolio is split 60/40 between stocks and bonds respectively. The equity component offers stability and current income thanks to it dividend-focused, ex-financials exposure. The fixed income component is also well diversified; this portfolios uses three ETFs to cover a vast range of securities from the bond market. Exposure to U.S. Treasuries, agency bonds, investment grade corporate bonds, and “junk bonds is included.
The complete Financials Free ETFdb Portfolio is available to ETFdb Pro members or with a free 7-day trial to ETFdb Pro. Also check out our new Energy Bull ETFdb Portfolio , as well as our Cheapskate Hedge Fund ETFdb Portfolio.
Also included with the ETFdb Pro subscription are more than 30 all-ETF model portfolios, including both retirement-focused and more tactical themed strategies. [To see all that is included, a free sample of the Emerging & Frontier Markets ETFdb Portfolio is available to all ETFdb readers]
Disclosure: No positions at time of writing.