ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Artificial Intelligence
      • Beyond Basic Beta
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Investing
      • ETF Education
      • ETF Strategist
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Institutional Income Strategies
      • Leveraged & Inverse
      • Managed Futures
      • Market Insights
      • Modern Alpha
      • Responsible Investing
      • Retirement Income
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Commodities
        • Gold/Silver/Critical Minerals
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook Channel
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Modern Alpha Channel
  2. Now Is the Time to Refresh 60/40 Ideas
Modern Alpha Channel
Share

Now Is the Time to Refresh 60/40 Ideas

Tom LydonDec 23, 2021
2021-12-23

Advisors making New Year’s resolutions might want to consider revisiting their 60/40 portfolio construction, because low interest rates and high inflation, among other factors, could continue hindering the traditional stock/bond mix in 2022.

But there’s good news: There are plenty of credible alternatives to the 60/40 portfolio. These include the Siegel-WisdomTree Portfolios, which include two model portfolios that could be poised to benefit in a market environment with low bond yields and stretched equity valuations.

For example, the Siegel-WisdomTree Global Equity Model can help advisors looking to boost income streams in client portfolios, because this model features no fixed income exposure. Rather, it’s comprised of 13 ETFs, 10 of which are dedicated dividend funds.

Although the Siegel-WisdomTree Global Equity Model is 100% allocated to equity-based ETFs, it still offers high levels of diversification, which is a trait that shouldn’t be overlooked in the current risk climate.

To that point, the Siegel-WisdomTree Global Equity Model features exposure across the size spectrum, dipping into mid- and small-cap stocks in addition to large-caps. It also allocates 40% of its weight to ex-U.S. equities, both in developed and emerging markets.

The portfolio is a collaboration with Dr. Jeremy Siegel, professor of finance at The Wharton School, and was specifically designed to outperform the traditional 60/40 stock/bond mix by “structurally allocating more toward equities over fixed income and tilting toward factors such as dividend yield and low valuation ratios to seek
higher income generation and outperformance potential,” explains WisdomTree.

As of the end of September 2021, the model’s top three allocations included 15% in the WisdomTree U.S. Total Dividend Fund (DTD A-), 15% in the WisdomTree U.S. LargeCap Fund (EPS A), and 12% in the Vanguard High Dividend Yield Index Fund ETF (VYM A).

The model portfolio’s quality tendencies, which avail themselves in the form of dividend growth, could be advantageous at a time when advisors and clients are increasingly concerned about inflation.

For more news, information, and strategy, visit the Model Portfolio Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X