Balanced ETF Portfolio
In creating a balanced ETF portfolio for investing, one key point to keep in mind is that there is no such thing as one correct/perfect ETF portfolio. There are many factors to consider in creating an ETF portfolio such as propensity to risk, investor's age, the split between stocks and bonds to name a few. The ETF Newsletter website has selected the following mix of 10 ETFs for a balanced ETF portfolio:
20% S&P 500
10% Total Stock Market
15% US Small
10% REIT
10% International Developed Europe
10% International Developed Pacific
5% Emerging Markets
10% Intermediate Term Bonds
5% Short Term Bonds
5% Inflation-Protected Securities (TIPS)
The next step is to select the actual ETF's for the portfolio. MorningStar's ETF Screener and Yahoo Finance are good tools to help with the selection process.
The selection process took place in Februray 2009 which appears to be near the bottom of the one of the worst bear markets in US history. As a result, the returns for the ETFs were quite dismal. The selection was based more on lower expenses and larger market capitalization than performance. The actual balanced ETF portfolio for ETF-Newsletter.com is:
SPDRs 
(SPY, 20%)
(SPY, 20%)Vanguard Total Stock Market ETF (VTI, 10%)
iShares Russell 2000 Index (IWM, 15%)
(IWM, 15%)Vanguard SF REIT ETF (VNQ, 10%)
Vanguard European Stock ETF (VGK, 10%)
Vanguard Pacific ETF (VPL, 10%)
Vanguard Emerging Markets ETF (VWO, 5%)
iShares Barclays Aggregate Bond (AGG, 10%)
iShares Barclays 1-3 Yr Credit Bond (CSJ, 5%)
iShares Barclays TIP (TIP, 5%)
In parenthesis are the ETF symbol and the percentage of the portfolio each ETF will constitute. This portfolio represents the basis for the ETF investing strategy this website is based on.
Contact us at etfnewsletter(@)gmail.com in Land O'Lakes, FL
Balanced ETF Portfolio - ETF Portfolio
