As the popularity of exchange traded funds continues to grow, more advisors are offering model ETF portfolios as a service.
Forbes‘ Richard Ferri takes a look at this trend in his recent article The Next Big Thing: Model ETF Portfolios. Ferri offers his own “Core Four” portfolio solution that includes an all-Vanguard line-up:
Total Stock Market ETF (VTI )
FTSE All-World ex-US ETF (VEU )
REIT ETF (VNQ)
Total Bond Market ETF (BND)
Kiplinger’s Jeffrey Kosnett recently published a primer on investing with Exchange Traded Funds and included a list of 10 ETFs that you need to know.
The funds making Kosnett’s 10 “to know” list include:
SPDR Barclays Capital High Yield Bond ETF (JNK)
iShares S&P-Citigroup International Treasury Bond Fund (IGOV)
S&P Global Utilities Sector Index Fund (JXI)
iBoxx $ Investment Grade Corporate Bond Fund (LQD)
Investment adviser Steven Goldberg provides his picks for the top exchange traded funds for 2010 on Kiplinger.com.
Goldberg belives that the market will reward shares of the biggest and strongest companies this year and, within that category, the faster growers among them.
Goldberg’s ETF portfolio for 2010 includes:
55% Vanguard Total Stock Market ETF (VTI)
10% Vanguard Mega Cap 300 Growth ETF (MGK)
20% Vanguard Europe Pacific ETF (VEA)
10% Vanguard Emerging Markets Stock ETF (VWO)
5% Vanguard REIT Index ETF (VNQ)
For more diversification, Goldberg recommends adding bonds with funds such as:
SPDR Barclays Aggregate Bond (LAG)
iShares S&P National AMT-Free Municipal Bond (MUB)
In the column ETF Portfolios for Every Purpose, Kiplinger’s Jeffrey Kosnett recently outlined a series of all ETF portfolios with the idea that you can pursue any goal with nothing more than exchange-traded funds.
Kosnett’s all ETF Growth and Income portfolio includes these funds:
Kiplinger’s Jeffrey Kosnett has put together several model portfolios with the idea that you can pursue any goal with nothing more than exchange traded funds.
Kosnett’s equity-only portfolio is designed for investors who have a healthy tolerance for risk and are investing for long-term growth. The portfolio includes 90% equity ETFs and 10% commodity ETFs:
REIT investors are faring better than the REITs themselves according to the WSJ’s Donna Kardos Yesalavich.
In the article, REITs May Face Trouble, but REIT Shares Don’t, Yesalavich points out that REITs have rallied 90% off 18 year lows set in March, yet remain 60% below February 2007 highs. Despite continued troubles in the commercial real estate market, the improving outlook for debt refinancing means that fewer REITs are likely to be forced into bankruptcy.
Several options for gaining exposure to REITs are available for U.S. investors. The Vanguard REIT ETF (VNQ) tracks a benchmark of U.S. property trusts that covers about two-thirds of the value of the entire U.S. REIT market. Another popular REIT ETF is the DJ Wilshire REIT ETF (RWR) which invests in commercial REITs and is rebalanced monthly.
See the report Investing in REITs with ETFs for more on REIT ETFs.
