ddh1-demo Investment Model Portfolios

Total Available Funds: 10

Asset Class

Ticker

Description

US EQUITY
LARGE BLEND	SPY	SPDR S&P 500

INTERNATIONAL EQUITY
Foreign Large Blend	EFA	iShares MSCI EAFE Index

Emerging Market
DIVERSIFIED EMERGING MKTS	VWO	Vanguard Emerging Markets Stock ETF

FIXED INCOME
High Yield Bond	HYG	iShares iBoxx $ High Yield Corporate Bd
Emerging Markets Bond	EMB	iShares JPMorgan USD Emerg Markets Bond
Emerging Markets Bond	ELD	WisdomTree Emerging Markets Local Debt
Intermediate-Term Bond	AGG	iShares Barclays Aggregate Bond

COMMODITIES
COMMODITIES BROAD BASKET	DJP	iPath DJ-UBS Commodity Index TR ETN
Commodities Precious Metals	GLD	SPDR Gold Shares

REAL ESTATE
REAL ESTATE	IYR	iShares Dow Jones US Real Estate

We provide two types of investment model portfolios for ddh1-demo 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.