Retirement Income ETFs-0-22-no-GLD Investment Model Portfolios

This plan is designed for income producing purpose: high dividend (yield) stock ETFs are chosen for both US stocks and international stocks asset classes. We have decided to use general emerging market stocks ETFs (EEM or VWO) instead of some thinly traded high dividend emerging market stock ETFs. This situation will be changed once the high yield emerging market stock ETFs become more liquid and tradable.

Investment options of Retirement Income ETFs-0-22-no-GLD

Total Available Funds: 41

Asset Class

Ticker

Description

US EQUITY
LARGE BLEND	VIG	Vanguard Dividend Appreciation ETF
MID-CAP VALUE	DVY	iShares Dow Jones Select Dividend Index
LARGE VALUE	SDY	SPDR S&P Dividend
MID-CAP VALUE	PEY	PowerShares Hi-Yield Eq Div Achievers
LARGE VALUE	VYM	Vanguard High Dividend Yield Indx ETF
LARGE VALUE	FVD	First Trust Value Line Dividend Index
LARGE VALUE	SPLV	PowerShares S&P 500 Low Volatility

Others
MISCELLANEOUS SECTOR	PFF	iShares S&P U.S. Preferred Stock Index
Equity Energy	AMJ	JPMorgan Alerian MLP Index ETN

INTERNATIONAL EQUITY
Foreign Large Value	PID	PowerShares Intl Dividend Achievers
Foreign Large Value	IDV	iShares Dow Jones Intl Select Div Idx

REAL ESTATE
REAL ESTATE	IYR	iShares Dow Jones US Real Estate
REAL ESTATE	ICF	iShares Cohen & Steers Realty Majors
Global Real Estate	VNQI	Vanguard Global ex-US Real Estate ETF

FIXED INCOME
High Yield Bond	HYG	iShares iBoxx $ High Yield Corporate Bd
Long-Term Bond	LQD	iShares iBoxx $ Invest Grade Corp Bond
Long-Term Bond	VCLT	Vanguard Long-Term Corp Bond Idx ETF
Intermediate-Term Bond	CIU	iShares Barclays Intermediate Credit Bd
Intermediate-Term Bond	CORP	PIMCO Investment Grade Corp Bd Index ETF
Short-Term Bond	CSJ	iShares Barclays 1-3 Year Credit Bond
Short-Term Bond	VCSH	Vanguard Short-Term Corp Bd Idx ETF
Intermediate Government	IEI	iShares Barclays 3-7 Year Treasury Bond
LONG GOVERNMENT	IEF	iShares Barclays 7-10 Year Treasury
SHORT GOVERNMENT	SHY	iShares Barclays 1-3 Year Treasury Bond
LONG GOVERNMENT	TLT	iShares Barclays 20 Year Treas Bond
Inflation-Protected Bond	TIP	iShares Barclays TIPS Bond
Intermediate-Term Bond	MBB	iShares Barclays MBS Bond
Muni National Long	MUB	iShares S&P National AMT-Free Muni Bd
Muni National Short	SHM	SPDR Nuveen Barclays Capital S/T Muni Bd
WORLD BOND	BWX	SPDR Barclays Capital Intl Treasury Bond
Emerging Markets Bond	EMB	iShares JPMorgan USD Emerg Markets Bond
Emerging Markets Bond	PCY	PowerShares Emerging Mkts Sovereign Debt
WORLD BOND	WIP	SPDR DB Intl Govt Infl-Protected Bond
Intermediate-Term Bond	BOND	PIMCO Total Return ETF
Short-Term Bond	BSV	Vanguard Short-Term Bond ETF
Intermediate-Term Bond	BND	Vanguard Total Bond Market ETF
Inflation-Protected Bond	LTPZ	PIMCO 15 Year US TIPS Index ETF
Inflation-Protected Bond	STPZ	PIMCO 1-5 Year US TIPS Index ETF

Emerging Market
DIVERSIFIED EMERGING MKTS	EEM	iShares MSCI Emerging Markets Index
DIVERSIFIED EMERGING MKTS	VWO	Vanguard MSCI Emerging Markets ETF
DIVERSIFIED EMERGING MKTS	DEM	WisdomTree Emerging Markets Equity Inc

Investment model portfolios

We provide two types of investment model portfolios for Retirement Income ETFs-0-22-no-GLD 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.

Customize a model portfolio now

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