Retirement Income ETFs
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.

Plan investment options

Total Available Funds: 36
Asset Class Ticker Description Rating Expense
Emerging Market
DIVERSIFIED EMERGING MKTS EEM iShares MSCI Emerging Markets Index 0.7%
DIVERSIFIED EMERGING MKTS DEM WisdomTree Emerging Markets Equity Inc 0.63%
DIVERSIFIED EMERGING MKTS VWO Vanguard MSCI Emerging Markets ETF 0.08%
REAL ESTATE
REAL ESTATE IYR iShares Dow Jones US Real Estate 0.4%
REAL ESTATE VNQ Vanguard REIT Index ETF 0.12%
INTERNATIONAL EQUITY
Foreign Large Blend VEA Vanguard MSCI EAFE ETF 0.05%
EUROPE STOCK VGK Vanguard MSCI Europe ETF 0.09%
Foreign Large Value IDV iShares Dow Jones Intl Select Div Idx 0.51%
Others
Utilities XLU Utilities Select Sector SPDR 0.09%
Consumer Defensive XLP Consumer Staples Select Sector SPDR 0.09%
Equity Energy AMJ JPMorgan Alerian MLP Index ETN 0.85%
FIXED INCOME
LONG GOVERNMENT IEF iShares Barclays 7-10 Year Treasury 0.15%
Muni National Short SHM SPDR Nuveen Barclays Capital S/T Muni Bd 0.2%
Intermediate-Term Bond BND Vanguard Total Bond Market ETF 0.15%
Short-Term Bond BSV Vanguard Short-Term Bond ETF 0.07%
Muni National Interm MUB iShares S&P National AMT-Free Muni Bd 0.05%
Intermediate-Term Bond MBB iShares Barclays MBS Bond 0.04%
Intermediate Government IEI iShares Barclays 3-7 Year Treasury Bond 0.15%
SHORT GOVERNMENT SHY iShares Barclays 1-3 Year Treasury Bond 0.15%
Inflation-Protected Bond TIP iShares Barclays TIPS Bond 0.19%
High Yield Bond HYG iShares iBoxx $ High Yield Corporate Bd 0.49%
Long-Term Bond LQD iShares iBoxx $ Invest Grade Corp Bond 0.14%
Bank Loan BKLN PowerShares Senior Loan Port 0.65%
Short-Term Bond VCSH Vanguard Short-Term Corp Bd Idx ETF 0.04%
Long-Term Bond PFF iShares S&P U.S. Preferred Stock Index 0.46%
High Yield Bond SJNK SPDR BarCap ST High Yield Bond ETF 0.4%
Intermediate-Term Bond BOND PIMCO Total Return ETF 0.56%
INVESTMENT GRADE IGSB iShares Short Term Corp Bond 0.04%
INVESTMENT GRADE IGIB iShares Intermediate Term Corp 0.04%
US EQUITY
MID-CAP VALUE DVY iShares Dow Jones Select Dividend Index 0.38%
LARGE VALUE DIA SPDR Dow Jones Industrial Average 0.16%
LARGE VALUE SDY SPDR S&P Dividend 0.35%
LARGE VALUE VYM Vanguard High Dividend Yield Indx ETF 0.08%
LARGE BLEND VIG Vanguard Dividend Appreciation ETF 0.08%
LARGE VALUE SPLV PowerShares S&P 500 Low Volatility 0.25%
LARGE VALUE USMV iShares MSCI USA Min Volatility 0.15%
Average Expense Ratio: 0.25%

The following is a moderate-risk model portfolio constructed from the investment options of Retirement Income ETFs.

This portfolio is proactively monitored and rebalanced on a monthly basis when needed, ensuring it remains in line with its target allocation. We offer customization features, allowing subscribers to tailor the portfolio to align with their own risk tolerance and return expectations by changing risk profile parameter.

Our model portfolio is rooted in the MyPlanIQ Asset Allocation Composite (AAC) strategy. This dynamic (tactical) asset allocation and quantitative fund selection algorithm prioritize risk management by dynamically adjusting stock allocations based on prevailing asset momentum. Extensive research has shown that this momentum-based tactical approach can potentially reduce temporary losses while maintaining or outperforming traditional buy-and-hold strategies.

Both historical back test and real-time portfolio return and risk data are shown in the table on this page. These metrics are compared with stock and moderate allocation index funds.

Furthermore, subscribers have the option to explore alternative strategies such as Strategic Asset Allocation Optimal (SAA) and Tactical Asset Allocation (TAA) to further customize their model portfolio. See our investment methodology for more details on the investment strategies


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Puzzled on what to invest?

  • We ask a few questions to decide your personal return and risk expectations
  • We build a custom portfolio for your plan (401(k), 403(b), 529 ...) or for a  brokerage account
  • We monitor and send timely rebalance emails on what investment funds to buy and sell
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