Moderate Portfolio
Portfolio Strategy
The Moderate ETFdb Portfolio is designed for clients who maintain some degree of risk tolerance and willingness to accept volatility in their investment portfolios, but a desire to avoid excessively risky assets and extreme fluctuations . The risk and return of this ETFdb Portfolio may be ideal for investors interested in growing assets over a relatively long time and willing to accept a moderate amount of volatility in order to do so.
The Moderate ETFdb Portfolio may also be used as a starting point for more active traders without a strong opinion as to the short to intermediate-term performance of the financial markets. As investors become more bullish, a shift towards equities may be appropriate, while a deteriorating outlook may call for a shift into fixed income securities.
This ETFdb Portfolio is inspired by a moderate investment strategy that follows an allocation of roughly 60% equity and 40% fixed income. In addition, although many investors have shied away from real estate investments in recent years, we believe this asset class can still provide valuable return enhancement and diversification benefits (particularly over the long term), and as such have given it a minor 5% allocation (reducing our equity allocation to 55%).
The equity allocation is tilted towards large cap U.S. stocks through IWB, but maintains material weightings in small and mid cap domestic equities, as well as international markets, both emerging and developed. On the fixed income side, this ETFdb Portfolio invests exclusively in government bonds, and maintains a high weighting towards inflation protected securities.
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