Demo 1
Investment Model Portfolios
Investment options of Demo 1
Total Available Funds: 26
| Asset Class |
Ticker
| Description |
| US EQUITY |
|
|
| SMALL BLEND |
IWM |
iwm |
| LARGE VALUE |
SDY |
sdy |
| SMALL BLEND |
IJR |
ijr |
| MID-CAP BLEND |
IJH |
ijh |
|
| Emerging Market |
|
|
| DIVERSIFIED EMERGING MKTS |
VWO |
vwo |
|
| Others |
|
|
| EQUITY PRECIOUS METALS |
CEF |
cef |
| Natural Resources |
MOO |
moo |
| Currency |
UUP |
uup |
| Equity Energy |
XLE |
xle |
| Natural Resources |
XME |
xme |
| ROOT |
CASH |
cash |
| Bear Market |
UDN |
udn |
| MISCELLANEOUS SECTOR |
VXX |
vxx |
|
| COMMODITIES |
|
|
| COMMODITIES BROAD BASKET |
DBC |
dbc |
| Commodities Precious Metals |
SLV |
slv |
| Commodities Precious Metals |
GLD |
gld |
|
| REAL ESTATE |
|
|
| REAL ESTATE |
RWR |
rwr |
| Global Real Estate |
RWX |
rwx |
|
| FIXED INCOME |
|
|
| Intermediate-Term Bond |
AGG |
agg |
| Emerging Markets Bond |
PCY |
pcy |
| Bank Loan |
FFRHX |
ffrhx |
| WORLD BOND |
IGOV |
igov |
| SHORT GOVERNMENT |
SHY |
shy |
| Emerging Markets Bond |
PCY |
pcy |
|
| INTERNATIONAL EQUITY |
|
|
| Foreign Large Value |
PID |
pid |
| WORLD STOCK |
VT |
vt |
|
Investment model portfolios
We provide two types of investment model portfolios for Demo 1 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.
