
Exchange-traded products have found their way into countless portfolios as investors of all walks have embraced these financial instruments for their ease of use, cost efficiency, and unparalleled transparency.
A 2013 WSJ article by Anna Prior highlighted the sheer diversity among products in the ETF universe and how investors can actually build fairly complete portfolios with just a few funds.
In the spirit of simplicity, below we outline 25 all-ETF portfolios, each comprising just three funds in total.*
*Please note that investors should adjust the suggested allocations within each of the strategies to better suite their individual risk preferences and current income needs (expenses as of 5/15/2015).
25. Global Stocks & Bonds
This strategy spans the globe, covering both equity and fixed-income asset classes from both developed and emerging markets:
Ticker | ETF | Allocation |
---|---|---|
(VTI ) | Total Stock Market ETF | 65% |
(VEU ) | FTSE All World Ex US ETF | 20% |
(FWDB ) | Madrona Forward Global Bond ETF | 15% |
- | Portfolio Expense Ratio | 0.21% |
24. U.S. Total Market
This strategy is geared towards investors who are wary of international markets and would prefer to achieve foreign exposure tangentially through U.S. companies with overseas operations. A small bond component is also included to add diversification:
Ticker | ETF | Allocation |
---|---|---|
(RSP ) | S&P Equal Weight ETF | 40% |
(SCHA ) | U.S. Small-Cap ETF | 40% |
(BND ) | Total Bond Market ETF | 20% |
- | Portfolio Expense Ratio | 0.21% |
23. Foreign Growth
This portfolio is not for the risk-averse as it focuses entirely on foreign developed and emerging markets equity funds along with an ex-U.S. bond component:
Ticker | ETF | Allocation |
---|---|---|
(SCHF ) | International Equity ETF | 60% |
(DGS ) | Emerging Market SmallCap Fund | 20% |
(BWX ) | SPDR Barclays Intl Treasury Bond | 20% |
- | Portfolio Expense Ratio | 0.27% |
22. Low Volatility
Anyone with capital preservation as a top priority ought to consider this “safer” equity-centric strategy:
Ticker | ETF | Allocation |
---|---|---|
(SPLV ) | S&P 500 Low Volatility Portfolio | 50% |
(EFAV ) | iShares MSCI EAFE Minimum Volatility ETF | 30% |
(EEMV ) | iShares MSCI Emerging Markets Minimum Volatility ETF | 20% |
- | Portfolio Expense Ratio | 0.24% |
21. Ex-Financials
This is another strategy geared towards more risk-averse investors who wish to entirely steer clear of the infamous financials sector:
Ticker | ETF | Allocation |
---|---|---|
(DTN ) | Dividend ex-Financials Fund | 50% |
(DOO ) | International Dividend ex-Financials Fund | 25% |
(ENGN ) | iShares Industrials Bond ETF | 25% |
- | Portfolio Expense Ratio | 0.41% |
20. U.S. Dollar-Denominated
This strategy offers international stock and bond exposure while at the same time circumventing the inherent currency risk by utilizing U.S. dollar-denominated funds:
Ticker | ETF | Allocation |
---|---|---|
(DBEF ) | MSCI EAFE Hedged Equity Fund | 60% |
(DBEM ) | MSCI Emerging Markets Equity Fund | 20% |
(EMB ) | iShares J.P. Morgan USD Emerging Markets Bond ETF | 20% |
- | Portfolio Expense Ratio | 0.46% |
19. BRIC Bull
The name says it all; this strategy delivers targeted exposure to the BRIC markets:
Ticker | ETF | Allocation |
---|---|---|
(EWZ ) | iShares MSCI Brazil Capped ETF | 25% |
(RSX ) | Market Vectors Russia ETF | 25% |
(FNI ) | ISE Chindia Index Fund | 50% |
- | Portfolio Expense Ratio | 0.61% |
18. Ex-Europe
Investors looking to steer clear of the debt-burdened currency bloc, but still wish to maintain international exposure, ought to consider this strategy:
Ticker | ETF | Allocation |
---|---|---|
(SCHB ) | U.S. Broad Market ETF | 50% |
(VPL ) | FTSE Pacific ETF | 30% |
(ILF ) | iShares Latin America 40 ETF | 20% |
- | Portfolio Expense Ratio | 0.15% |
17. Cyclical-Tilt
This strategy focuses on the most cyclical sectors, and as such, should appeal to bullish investors with a stomach for volatility:
Ticker | ETF | Allocation |
---|---|---|
(IPW ) | SPDR S&P International Energy Sector ETF | 40% |
(IPK ) | SPDR S&P International Technology Sector ETF | 40% |
(BJK ) | Market Vectors Gaming ETF | 20% |
- | Portfolio Expense Ratio | 0.45% |
16. Global Consumers
As a complement to the Cyclical-Tilt Portfolio, this strategy is based around consumer staples exposure across the globe, covering both developed and emerging markets; the bond component is heavily tilted towards consumer staples as well:
Ticker | ETF | Allocation |
---|---|---|
(KXI ) | iShares Global Consumer Staples ETF | 50% |
(ECON ) | EGShares Emerging Markets Consumer | 25% |
(ENGN ) | iShares Industrials Bond ETF | 25% |
- | Portfolio Expense Ratio | 0.52% |
15. Commodity Bull
This strategy is intended for those with a bullish outlook on the global economy and is balanced between commodity stocks and futures-based exposure to natural resource prices:
Ticker | ETF | Allocation |
---|---|---|
(HAP ) | Market Vectors Hard Assets Producers ETF | 40% |
(MOO ) | Market Vectors-Agribusiness ETF | 40% |
(RJI ) | Rogers Intl Commodity ETN | 20% |
- | Portfolio Expense Ratio | 0.57% |
14. ex-Japan
It’s no secret that Asian markets are going to account for a growing share of global GDP growth over the coming years. However, Japan has long been stuck in a rut, and as such, this strategy entirely avoids exposure to this developed market in an otherwise booming region:
Ticker | ETF | Allocation |
---|---|---|
(AAXJ ) | MSCI All Country Asia ex Japan Index Fund | 50% |
(GMF ) | SPDR S&P Emerging Asia Pacific ETF | 30% |
(AUNZ ) | Australia & New Zealand Debt Fund | 20% |
- | Portfolio Expense Ratio | 0.58% |
13. Warren Buffett Clone
This strategy revolves around the investment principles embraced by the Wall Street legend:
Ticker | ETF | Allocation |
---|---|---|
(MOAT ) | Market Vectors Wide Moat Research ETF | 40% |
(VIG ) | Dividend Appreciation ETF | 40% |
(EES ) | SmallCap Earnings Fund | 20% |
- | Portfolio Expense Ratio | 0.31% |
12. Monthly Income
This strategy should appeal to conservative investors or those nearing retirement and in search of meaningful current income; each of the components here pays out a monthly dividend:
Ticker | ETF | Allocation |
---|---|---|
(SDIV ) | SuperDividend ETF | 40% |
(KBWD ) | KBW High Dividend Yield Financial Portfolio | 30% |
(BND ) | Total Bond Market ETF | 30% |
- | Portfolio Expense Ratio | 0.72% |
11. Emerging Markets Fever
This portfolio is intended for aggressive, long-term investors who wish to tap into the world’s fastest growing economies:
Ticker | ETF | Allocation |
---|---|---|
(VWO ) | Emerging Markets ETF | 50% |
(EWX ) | SPDR S&P Emerging Markets Small Cap ETF | 25% |
(FM ) | MSCI Frontier 100 Index Fund | 25% |
- | Portfolio Expense Ratio | 0.44% |
10. Commodity Countries
This strategy offers tangential exposure to commodity markets by focusing on the world’s largest producers of natural resources:
Ticker | ETF | Allocation |
---|---|---|
(ABCS) | ABC High Dividend ETF | 40% |
(GUNR ) | Morningstar Global Upstream Natural Resources Index Fund | 40% |
(CCX ) | Dreyfus Commodity Currency Fund | 20% |
- | Portfolio Expense Ratio | 0.56% |
9. Ultra-Cheap
The name says it all, this is a traditional stock-and-bond portfolio with the distinguishing feature being its rock-bottom expense ratio:
Ticker | ETF | Allocation |
---|---|---|
(SCHB ) | U.S. Broad Market ETF | 50% |
(VEA ) | Europe Pacific | 30% |
(SCHZ ) | U.S. Aggregate Bond ETF | 20% |
- | Portfolio Expense Ratio | 0.06% |
8. Hedge Fund Clone
For anyone looking to replicate the strategies of professional money managers, this is a great starting point:
Ticker | ETF | Allocation |
---|---|---|
(MCRO ) | IQ Hedge Macro Tracker ETF | 35% |
(LSC ) | S&P CTI ETN | 35% |
(GURU ) | Top Guru Holdings Index ETF | 30% |
- | Portfolio Expense Ratio | 0.75% |
7. Retirement-Ready
Unlike most of the other strategies covered here, this portfolio is bond-heavy and geared towards very conservative investors who wish to preserve capital and generate a steady stream of income:
Ticker | ETF | Allocation |
---|---|---|
(VIG ) | Dividend Appreciation ETF | 20% |
(BND ) | Total Bond Market ETF | 60% |
(TIP ) | TIPS Bond ETF | 20% |
- | Portfolio Expense Ratio | 0.11% |
6. Growth-Tilt
This strategy is geared towards aggressive investors with a long-term horizon in mind:
Ticker | ETF | Allocation |
---|---|---|
(IWZ ) | iShares Russell 3000 Growth ETF | 50% |
(EFG ) | iShares MSCI EAFE Growth ETF | 30% |
(EGRW ) | MSCI Emerging Markets Growth Index Fund | 20% |
- | Portfolio Expense Ratio | 0.26% |
5. Storm Proof
This strategy looks to weather all economic environments by holding on to three asset classes that have historically generated stable returns over the long haul:
Ticker | ETF | Allocation |
---|---|---|
(VDC ) | Consumer Staples ETF | 50% |
(BND ) | Total Bond Market ETF | 30% |
(DBP ) | DB Precious Metals Fund | 20% |
- | Portfolio Expense Ratio | 0.24% |
4. All About Dividends
With interest rates still stuck at historically low levels, this strategy should appeal to anyone looking to generate meaningful current income:
Ticker | ETF | Allocation |
---|---|---|
(LVL ) | S&P Global Dividend Opportunities Index ETF | 60% |
(HYG ) | iShares iBoxx $ High Yield Corporate Bond ETF | 25% |
(EMHY ) | Emerging Markets High Yield Bond Fund | 15% |
- | Portfolio Expense Ratio | 0.76% |
3. Tax Escape
This strategy is intended for investors that fall in the high-income tax bracket, and as such, it avoids dividend-paying securities; the bond component is also made up entirely of municipal debt, which is tax-exempt:
Ticker | ETF | Allocation |
---|---|---|
(IWF ) | iShares Russell 1000 Growth ETF | 50% |
(VBK ) | Small-Cap Growth ETF | 20% |
(MUB ) | iShares National AMT-Free Muni Bond ETF | 30% |
- | Portfolio Expense Ratio | 0.19% |
2. Big Bear
Anyone looking to go against the bull trend should consider this strategy. Note that the holdings here are intended to serve as complements to a traditional long-only portfolio:
Ticker | ETF | Allocation |
---|---|---|
(DEF ) | Defensive Equity ETF | 60% |
(HDGE ) | Ranger Equity Bear ETF | 10% |
(UUP ) | DB USD Index Bullish | 30% |
- | Portfolio Expense Ratio | 0.92% |
1. All Abroad
Since most investors’ portfolios tend to have a glaring home-country bias, this strategy looks to avoid direct exposure to U.S. stocks and bonds:
Ticker | ETF | Allocation |
---|---|---|
(VEU ) | FTSE All World Ex US ETF | 65% |
(IGOV ) | S&P/Citigroup International Treasury Fund | 20% |
(ELD ) | Emerging Markets Local Debt Fund | 15% |
- | Portfolio Expense Ratio | 0.25% |
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Disclosure: No positions at time of writing.