Model Portfolios are used as starting points based on your current investment direction and changed over time as your direction starts to change
Model Portfolios are used as starting points based on your current investment direction and changed over time as your direction starts to change
this is a long term grow portfolio with a good mix of international stocks and bonds, plus some currency and Commodities included
Portfolio Holdings
VEU
Vanguard FTSE All-World Ex-US 47.63 0.38 +0.80% 32,721.81 29.09%
IWV
iShares Russell 3000 76.09 0.18 +0.24% 23,283.54 20.70%
GXC
SPDR S&P China 73.50 -0.22 -0.30% 10,216.50 9.08%
LQD
iShares iBoxx Investment Grade… 110.86 0.03 +0.03% 10,642.56 9.46%
DBC
PowerShares DB Commodity 29.23 -0.13 -0.44% 11,867.38 10.55%
BND
Vanguard Total Bond Market Fun… 81.83 0.08 +0.10% 10,719.73 9.53%
BWX
SPDR Barclays International Tr… 61.80 0.44 +0.72% 5,376.60 4.78%
DBV
PowerShares DB G-10 Currency H… 24.19 0.04 +0.17% 5,128.28 4.56%
Cash 2,520.98 2.24%
This aggressive portfolio anticipates strong returns in the equity markets and captures the most exciting opportunities for capital appreciation.
Portfolio Holdings
VEU
Vanguard FTSE All-World Ex-US 47.63 0.38 +0.80% 32,721.81 28.54%
RSP
Rydex S&P Equal Weight 48.50 0.21 +0.44% 24,492.50 21.36%
IWM
iShares Russell 2000 78.23 -0.04 -0.05% 12,516.80 10.92%
GMF
SPDR S&P Emerging Asia Pacific 81.12 0.06 +0.08% 10,870.08 9.48%
PGJ
PowerShares Golden Dragon Halt… 23.95 -0.20 -0.84% 9,915.30 8.65%
DLS
WisdomTree International Small… 51.81 0.68 +1.33% 5,750.91 5.02%
DGS
WisdomTree Emerging Markets Sm… 52.16 0.51 +0.99% 6,050.56 5.28%
DBB
PowerShares DB Base Metals ETF 23.06 -0.22 -0.95% 5,119.32 4.46%
USL
United States 12-Month Oil Fun… 42.65 -0.79 -1.82% 5,245.95 4.57%
Cash 1,984.54 1.73%
This portfolio anticipates a sustained period of subpar equity returns and aims to deliver consistent returns despite a trendless market.
Portfolio Holdings
PBP
PowerShares S&P 500 BuyWrite 20.71 0.08 +0.39% 25,991.05 23.41%
LQD
iShares iBoxx Investment Grade… 110.86 0.03 +0.03% 15,963.84 14.38%
DBV
PowerShares DB G-10 Currency H… 24.19 0.04 +0.17% 15,409.03 13.88%
DVY
IShares TR DJ SEL DIV INX 52.04 0.28 +0.54% 20,659.88 18.61%
HYG
iShares iBoxx High Yield Corpo… 88.88 1.01 +1.15% 10,043.44 9.05%
AMJ
JP Morgan Alerian MLP Index ET… 35.35 -0.17 -0.48% 10,251.50 9.24%
PFF
iShares S&P U.S. Preferred Sto… 39.10 0.25 +0.63% 5,631.12 5.07%
CWB
SPDR Barclays Capital Converti… 40.26 0.01 +0.02% 5,676.66 5.11%
Cash 1,385.45 1.25%
This portfolio anticipates a pullback in industrialized equities and aims to limit risk while capturing the most attractive returns available in the market.
Portfolio Holdings
MINT
PIMCO Enhanced Short Maturity … 101.16 -0.02 -0.02% 20,232.00 20.03%
EMB
iShares JPMorgan Emerging Mark… 108.12 -0.10 -0.09% 10,703.88 10.59%
TIP
iShares Barclays TIPS Bond Fun… 110.51 -0.10 -0.09% 10,608.96 10.50%
WIP
SPDR DB International Gov. Inf… 61.22 -0.18 -0.29% 10,958.38 10.85%
SGOL
ETF Securities Gold Trust 152.88 1.03 +0.68% 11,313.12 11.20%
LSC
ELEMENTS S&P Commodity Trends … 8.97 0.01 +0.11% 9,696.57 9.60%
SH
ProShares Short S&P 500 42.57 -0.14 -0.33% 9,578.25 9.48%
TBF
ProShares Short 20+ Year Treas… 41.37 0.18 +0.44% 8,977.29 8.89%
TBT
ProShares TR Ultra Short 20YRS 32.59 0.26 +0.80% 8,277.86 8.19%
Cash 686.20 0.68%
This portfolio aims to capture the most attractive opportunities among emerging and frontier markets. It may hold equities, bonds, commodities or currencies as appropriate.
Portfolio Holdings
VWO
Vanguard Emerging Markets 46.49 -0.37 -0.79% 28,312.41 25.71%
GMF
SPDR FDS Asia Pacific ETF 81.53 -0.53 -0.65% 21,441.08 19.47%
EPI
WisdomTree India Earnings 22.85 -0.10 -0.44% 15,515.15 14.09%
EWZ
iShares MSCI Brazil 70.57 -0.88 -1.23% 15,737.11 14.29%
HAO
Claymore/AlphaShares China Sma… 26.52 -0.31 -1.16% 4,906.20 4.46%
EZA
iShares MSCI South Africa 68.21 -0.43 -0.63% 6,070.69 5.51%
BRF
Market Vectors Brazil Small-Ca… 55.54 -0.43 -0.77% 5,609.54 5.09%
ECH
iShares MSCI Chile 70.83 -0.49 -0.69% 6,445.53 5.85%
TUR
iShares MSCI Turkey 58.55 -0.17 -0.29% 5,386.60 4.89%
Cash 686.20 0.62%
This portfolio highlights asset classes that will deliver strong returns during a period of sustained and rising inflation in the United States.
Portfolio Holdings
STPZ
PIMCO 1-5 Year U.S. TIPS Fund 53.73 -0.05 -0.09% 28,369.44 25.17%
DBC
PowerShares DB Commodity 29.23 -0.13 -0.44% 17,801.07 15.79%
TBF
ProShares Short 20+ Year Treas… 41.37 0.18 +0.44% 15,472.38 13.73%
IWM
iShares Russell 2000 78.23 -0.04 -0.05% 11,030.43 9.78%
WIP
SPDR DB International Gov. Inf… 61.22 -0.18 -0.29% 11,876.68 10.54%
CYB
WisdomTree Dreyfus Chinese Yua… 25.45 0.04 +0.16% 11,198.00 9.93%
JNK
SPDR Barclays Capital High Yie… 39.36 0.57 +1.47% 10,863.36 9.64%
DBB
PowerShares DB Base Metals 23.06 -0.22 -0.95% 5,119.32 4.54%
Cash 997.09 0.88%
The Simple (But Effective) Safe Haven ETFdb Portfolio is a blend of equity, commodity, and fixed income holdings, all of which have the potential to take on safe haven appeal during periods of high market volatility. From a historical perspective, this portfolio has a tendency to either surpass or match the performance of the S&P 500; however, its volatility is considerably lower, making for a very appealing risk/return profile [see Historical Return Analysis below].
Investors should consider using this portfolio, or certain parts of it, as a tactical allocation to complement their existing holdings during times of uncertainty when markets seem directionless or when they need to scale back their risk appetite. This portfolio should not be considered as a viable long-term investment strategy since it lacks proper diversification across market cap levels and geographic regions, excluding small cap equities and emerging markets entirely.
• Risk Tolerance: Low to Moderate. Equities receive the heaviest weighting, making this portfolio moderately risky, although the equity exposure in concentrated in safer corners of the market and complemented nicely with a broad fixed-income fund.
• Time Horizon: Intermediate. This portfolio is by no means ideal over the long-run since it lacks proper diversification, although it may be appealing as a buy-and-hold in some instances when economic hardships are expected to continue for some time.
• Current Income Needs: High. The current income portfolio of this portfolio is fairly high since all equity holdings generate relatively stable and meaningful dividend payouts, and the fixed income component is a solid source of yield as well.
Portfolio Snapshot
The following table presents the base weightings for each component of the Equal Weight ETFdb Portfolio. In addition, we have included alternative ETFs corresponding to each portfolio component:
Ticker ETF Asset Type Allocation Expense Ratio Alternative XLU
Utilities Select Sector SPDR U.S. Equities 20% 0.20% VPU, JXI
KXI
iShares S&P Global Consumer Staples Sector Index Fund International Equities 20% 0.48% IPS, RHS
IDV
iShares Dow Jones EPAC Select Dividend International Equities 20% 0.50% VIG, DVY
DBP
PowerShares DB Precious Metals Fund Commodities 20% 0.75% GLTR, JJP
AGG
iShares Barclays Aggregate Bond Fund Fixed Income 20% 0.22% BND
Weighted Average Expense Ratio 0.43%
Top ten value equities:
Symbol Company Name Market Capitalization Dividend Yield
ARR
ARMOUR RESIDENTIAL REIT INC $1.5B 15.35%
PDH
PETROLOGISTICS LP $1.6B 14.53%
RSO
RESOURCE CAPITAL CORP $760.1M 13.45%
AI
ARLINGTON ASSET INVESTMENT CORP $441.6M 13.16%
TWO
TWO HARBORS INVESTMENT CORP $3.4B 12.06%
LRE
LRR ENERGY LP $428.0M 11.93%
NRZ
NEW RESIDENTIAL INVESTMENT CORP $1.5B 11.67%
TICC
TICC CAPITAL CORP $571.1M 10.83%
STRA
STRAYER EDUCATION INC $400.4M 10.81%
BKCC
BLACKROCK KELSO CAPITAL CORP $729.1M 10.61%
Top ten growth equities:
Symbol Company Name Market Capitalization EPS Growth (TTM vs Prior TTM)
XL
XL GROUP PLC $9.1B 1252%
CSRE
CSR PLC $1.4B 1207%
TUC
MAC-GRAY CORP $314.2M 308%
EIG
EMPLOYERS HOLDINGS INC $1.0B 271%
KVHI
KVH INDUSTRIES INC $221.2M 194%
KR
KROGER CO. $21.8B 178%
ORBK
ORBOTECH LTD $590.0M 163%
TPC
TUTOR PERINI CORP $1.2B 133%
OTCQX:DTEGY
DEUTSCHE TELEKOM AG $70.2B 133%
OTCQX:AKZOY
AKZO NOBEL NV $18.1B 128%
For reference, full details of 2013 value strategy returns (12/1/12 to 12/1/13):
Symbol Company Name Performance 12/1/12 – 12/1/2013 Average Dividend Yield
NTI
NORTHERN TIER ENERGY LP 7.60% 21.51%
XRS
TAL EDUCATION GROUP 119.53% 12.36%
OTCPK:KKPNY
KONINKLIJKE KPN NV -44.48% 7.92%
CYS
CYS INVESTMENTS INC -37.13% 15.49%
NMM
NAVIOS MARITIME PARTNERS LP 22.49% 12.01%
EFC
ELLINGTON FINANCIAL LLC 6.15% 12.74%
MITT
AG MORTGAGE INVESTMENT TRUST INC -35.07% 13.81%
HCLP
HI-CRUSH PARTNERS LP 108.00% 9.36%
IRS
IRSA INVERSIONES Y REPRESENTACIONES SA 67.22% 11.20%
NRP
NATURAL RESOURCE PARTNERS LP 5.65% 11.46%
PSEC
PROSPECT CAPITAL CORP 7.26% 11.55%
KCAP
KCAP FINANCIAL INC -4.49% 11.54%
QRE
QR ENERGY LP -10.67% 11.22%
MCC
MEDLEY CAPITAL CORP 4.18% 10.59%
NCT
NEWCASTLE INVESTMENT CORP. 40.75% 8.90%
PNNT
PENNANTPARK INVESTMENT CORP 11.90% 5.20%
BKCC BLACKROCK KELSO CAPITAL CORP -3.35% 10.50%
TEF
TELEFONICA SA 25.57% 7.99%
SFUN
SOUFUN HOLDINGS LTD 204.09% 6.14%
PMT
PENNYMAC MORTGAGE INVESTMENT TRUST -8.53% 9.73%
GSJK
COMPRESSCO PARTNERS LP 15.19% 8.49%
HTGC
HERCULES TECHNOLOGY GROWTH CAPITAL INC 60.32% 8.12%
SDRL
SEADRILL LTD 10.96% 8.41%
RNF
RENTECH NITROGEN PARTNERS LP -48.31% 6.76%
BWP
BOARDWALK PIPELINE PARTNERS LP 2.75% 8.03%
Average Return 21.10% 10.44%
Total Return (with dividends) 31.54%
For reference, full details of 2013 growth strategy returns (12/1/12 to 12/1/13):
Symbol Company Name Performance 12/1/12 – 12/1/2013 Dividend Yield
FSRV
FIRSTSERVICE CORP 45.87% 0.90%
EXTR
EXTREME NETWORKS INC 92.29% 0.00%
GPK
GRAPHIC PACKAGING HOLDING CO 40.28% 0.00%
TWI
TITAN INTERNATIONAL INC -15.45% 0.10%
JBSS
JOHN B. SANFILIPPO & SON INC 47.21% 0.00%
REX
REX AMERICAN RESOURCES CORP 80.31% 0.00%
DENN
DENNYS CORP 53.49% 0.00%
BRCD
BROCADE COMMUNICATIONS SYSTEMS INC 51.57% 0.00%
CLUB
TOWN SPORTS INTERNATIONAL HOLDINGS INC 37.44% 4.60%
NATR
NATURE”S SUNSHINE PRODUCTS INC 28.82% 2.10%
URS
URS CORP 38.41% 1.60%
STFC
STATE AUTO FINANCIAL CORP 49.18% 2.00%
ACAT
ARCTIC CAT INC. 49.09% 0.70%
WDC
WESTERN DIGITAL CORP 124.62% 1.60%
DK
DELEK US HOLDINGS INC 16.27% 2.20%
ACET
ACETO CORP 119.73% 1.20%
SKH
SKILLED HEALTHCARE GROUP INC -24.44% 0.00%
AMED
AMEDISYS INC 55.51% 0.00%
ITRI
ITRON INC -2.10% 0.00%
DF
DEAN FOODS CO 18.15% 0.00%
GTIV
GENTIVA HEALTH SERVICES INC 20.17% 0.00%
KS
KAPSTONE PAPER & PACKAGING CORP 142.84% 0.00%
VMI
VALMONT INDUSTRIES INC 3.47% 0.70%
ZAGG
ZAGG INC -43.16% 0.00%
SMP
STANDARD MOTOR PRODUCTS INC. 77.13% 1.30%
Average Return 44.27% 0.76%
Total Return (with dividends) 45.03%
For those seeking to dial down risk a bit, being held in common makes these 12 stocks preliminary prospects for a conservative equity income portfolio:
Symbol Name
(BAX) Baxter International
(CVX) Chevron
(JNJ) Johnson & Johnson
(K) Kellogg
(KMB) Kimberly-Clark
(LMT) Lockheed Martin
(MCD) McDonald”s
(MO) Altria Group
(PAYX) Paychex
(RSG) Republic Services
(SO) Southern Company
(WM) Waste Management
This article presents a variety of data points for those stocks, to help you decide if they make sense for you.
We currently own and have owned 4 of the stocks for a long time: LMT, JNJ, CVX and BAX.
Figure 1 shows S&P Capital IQ Ratings related to inclusion in SPLV (low volatility), SPHQ (high Quality) and SPHD (high dividend ):
Figure 1:
They all have Beta below 1.00 (less volatile than the S&P 500). They all have B+ or better earnings and dividend quality rankings (above average). They all have materially higher yield than the S&P 500.