ETFInvestor (94.55)

My Asset Allocations

November 18, 2008 – Comments (0) | RELATED TICKERS: IVV , VV , SPY

My current asset allocation targets break down as follows.  

S&P 500                      13.5%

US Large Value              8.0%

US Small                       8.0%

US Small Value             8.0%

US Microcap                 3.5%

International Large         19.5%

International Small         2.5%

Emerging Markets        10.0%

US REIT                       3.5%

International REIT          1.5%

Domestic Bonds           17.0%

International Bonds       3.0%

US Cash                     0.0%

International Cash        2.0%

Total                          100% 

Which further breaks down as follows:

US                            61.5%

Intl                            38.5%

Total                         100%

And also as as: 

Stock                       73.0%

REIT                         5.0%

Bonds                      20.0%

Cash                         2.0% 

Total                         100% 

Why this allocation structure?  I developed these allocations based on my age/risk tolerance, desire for diversification, and availability of ETFs in the asset classes.  With the exception of minor tweaks, I don't change the allocation based on market timing.  Instead, I rebalance annually and add addtional funds as they become available to the asset classes that are below my target levels.

In upcoming blog entries I will lay out a model ETF portfolio based on these asset classes.