Hsbc North America (U.S.) Tax Reduction Investment Plan Investment Model Portfolios

Investment options of Hsbc North America (U.S.) Tax Reduction Investment Plan

Total Available Funds: 22

Asset Class

Ticker

Description

US EQUITY
LARGE BLEND	VINIX	Vanguard Institutional Index Instl
SMALL BLEND	NEFJX	Natixis Vaughan Nelson Small Cap Value A
MID-CAP BLEND	VIEIX	Vanguard Extended Market Idx Instl
SMALL BLEND	NAESX	Vanguard Small Cap Index Inv
LARGE BLEND	VIIIX	Vanguard Institutional Index Instl Pl
Small Growth	JSERX	JPMorgan Small Cap Equity R5
MID-CAP BLEND	VEMPX	Vanguard Extended Market Idx Instl Plus
LARGE BLEND	VFINX	Vanguard 500 Index Investor
LARGE GROWTH	VPMCX	Vanguard PRIMECAP Inv
LARGE VALUE	DODGX	Dodge & Cox Stock

INTERNATIONAL EQUITY
Foreign Large Blend	MKRYX	MM MSCI EAFE® International Index Y
WORLD STOCK	VTWIX	Vanguard Total World Stock Index Instl
Foreign Large Growth	NMOAX	Columbia Marsico Intl Opp Z
Foreign Large Value	BIIEX	Brandes International Equity I
Foreign Large Blend	VDMPX	Vanguard Developed Markets Idx Instl Pls
Foreign Large Blend	VIDMX	Vanguard Developed Markets Index Instl

FIXED INCOME
Intermediate Government	VFIUX	Vanguard Interm-Term Treasury Adm
Inflation-Protected Bond	VIPIX	Vanguard Inflation-Protected Secs Instl
Intermediate-Term Bond	VBTIX	Vanguard Total Bond Market Index Inst
Intermediate-Term Bond	VBMPX	Vanguard Total Bond Market Idx Instl Pls

Emerging Market
DIVERSIFIED EMERGING MKTS	VEMIX	Vanguard Emerging Mkts Stock Idx Inst

Others
ROOT	-	Vanguard Retirement Savings Trust III

Investment model portfolios

We provide two types of investment model portfolios for Hsbc North America (U.S.) Tax Reduction Investment Plan 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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