NewGSETFS Investment Model Portfolios

Total Available Funds: 19

Asset Class

Ticker

Description

FIXED INCOME
SHORT GOVERNMENT	VFISX	Vanguard Short-Term Treasury Inv
LONG GOVERNMENT	TLT	iShares Barclays 20+ Year Treas Bond
Intermediate Government	VFIIX	Vanguard GNMA Inv

Emerging Market
DIVERSIFIED EMERGING MKTS	BKF	iShares MSCI BRIC Index
DIVERSIFIED EMERGING MKTS	EEM	iShares MSCI Emerging Markets Index
Latin America Stock	ILF	iShares S&P Latin America 40 Index

COMMODITIES
COMMODITIES BROAD BASKET	DBC	PowerShares DB Commodity Index Tracking
Commodities Precious Metals	GLD	SPDR Gold Shares

INTERNATIONAL EQUITY
Foreign Large Blend	EFA	iShares MSCI EAFE Index
PACIFIC/ASIA EX-JAPAN STK	EPP	iShares MSCI Pacific ex-Japan
PACIFIC/ASIA EX-JAPAN STK	EWA	iShares MSCI Australia Index
Foreign Large Value	EWC	iShares MSCI Canada Index
EUROPE STOCK	EWG	iShares MSCI Germany Index
EUROPE STOCK	VGK	Vanguard MSCI Europe ETF
Foreign Small/Mid Blend	VSS	Vanguard FTSE All-Wld ex-US SmCp Idx ETF

US EQUITY
MID-CAP BLEND	MDY	SPDR S&P MidCap 400
SMALL VALUE	VBR	Vanguard Small Cap Value ETF

REAL ESTATE
Global Real Estate	RWX	SPDR Dow Jones Intl Real Estate
REAL ESTATE	VNQ	Vanguard REIT Index ETF

We provide two types of investment model portfolios for NewGSETFS 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.