fred
Investment Model Portfolios

Total Available Funds: 34

Asset Class

Ticker

Description

Others
ROOT	ETN	Eaton Corp
ROOT	ETN	Eaton Corp
Moderate Allocation	FBALX	Fidelity Balanced
Conservative Allocation	VWIAX	Vanguard Wellesley Income Adm
Moderate Allocation	FBALX	Fidelity Balanced
Moderate Allocation	OAKBX	Oakmark Equity & Income I
Conservative Allocation	VWIAX	Vanguard Wellesley Income Adm
Moderate Allocation	OAKBX	Oakmark Equity & Income I

INTERNATIONAL EQUITY
Foreign Large Value	TFFAX	Templeton Foreign Adv
Foreign Large Growth	FICDX	Fidelity Canada
Foreign Large Blend	FDIVX	Fidelity Diversified International
Foreign Large Blend	FIGRX	Fidelity International Discovery
Foreign Large Value	TFFAX	Templeton Foreign Adv
Foreign Large Growth	FICDX	Fidelity Canada
Foreign Large Blend	FDIVX	Fidelity Diversified International
Foreign Large Blend	FIGRX	Fidelity International Discovery

REAL ESTATE
REAL ESTATE	FRESX	Fidelity Real Estate Investment
REAL ESTATE	FRESX	Fidelity Real Estate Investment

We provide two types of investment model portfolios for fred 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.