STA Investment Model Portfolios

Total Available Funds: 24

Asset Class

Ticker

Description

INTERNATIONAL EQUITY
Foreign Large Blend	EFA	Daily EAFE

US EQUITY
LARGE VALUE	IWD	Russell 1000 Value Index
LARGE BLEND	WFSPX	S P 500 Flagship
LARGE BLEND	WFSPX	S P Midcap Index
US Small Cap	^RUT	Russell 2000 Index
LARGE GROWTH	IWF	Russell 1000 Growth Index
SMALL BLEND	SESPX	Yield Enhanced Short Term Investment Fund

Others
Retirement Income	principal pre	Principal Preservation Fund
ROOT	CASH	Vanguard Prime Money Mkt Fund
ROOT	unknow	State Street Global Advisor Target rtmt 2025
ROOT	unknow	State Street Global Advisor Target rtmt 2030
ROOT	unknow	State Street Global Advisor Target rtmt 2035
ROOT	unknow	State Street Global Advisor Target rtmt 2020
ROOT	unknow	State Street Global Advisor Target rtmt 2040
ROOT	unknow	State Street Global Advisor Target rtmt 2015
ROOT	unknow	State Street Global Advisor Target rtmt 2045
ROOT	unknow	State Street Global Advisor Target rtmt 2010
ROOT	unknow	State Street Global Advisor Target rtmt Income Securities
ROOT	unknow	State Street Global Advisor Target rtmt Income
ROOT	unknow	State Street Global Advisor Target rtmt 2050
ROOT	unknow	World Government Bond Ex-U.S. Index
ROOT	CASH	Vanguard Prime Money Mkt Fund

FIXED INCOME
Intermediate-Term Bond	SSBMX	Passive Bond Mkt Index

Emerging Market
DIVERSIFIED EMERGING MKTS	SSEMX	Daily Emerging Mkts Index

We provide two types of investment model portfolios for STA participants. You can customize and follow a model portfolio in your plan account.

Types of portfolio strategies

Strategic asset allocation portfolio: It invests in a diversified portfolio of multiple assets, buy-and-hold without frequently changing the asset allocation weights.
- Suitable: For long-term (more than 15 years, preferably more than 20 years), want to be tax efficient and can withstand interim drawdown or loss as high as 50% or more.
- Pros:
  - Less error-prone
  - Infrequent rebalancing or transactions
  - Tax efficient for taxable brokerage investments
- Cons:
  - Interim loss or drawdown can be substantial
  - Possible low returns for an extended period, such as 10 years or longer
Tactical asset allocation portfolio: it invests in a diversified portfolio of multiple assets, dynamically adjust stock and bond allocations to minimize losses during market stress.
- Suitable: For long-term (more than 10 years or preferably longer) capital. Investors are willing to rebalance as frequent as monthly.
- Pros:
  - Reduce large interim loss or drawdown
  - Less sensitive to investment entry point
  - Likely to improve returns
- Cons
  - Demand more frequent rebalancing or transactions
  - Less tax efficient — more suitable in a tax-deferred account such as 401(k) or IRA
  - Can experience a period of lower returns compared to a broad-based strategic allocation or a buy-and-hold benchmark, especially in some bull markets

These portfolios are proactively monitored and rebalanced on a monthly basis when needed, ensuring it remains in line with its target allocation.

Let us know (Email us) if you need help to create a custom model portfolio for your plan.