David John Marotta presents a list of the best Exchange Traded Funds (ETFs) of 2012 and how you can take advantage of these funds in your investment portfolio.
14. Dynamic Asset Allocation
May boost returns even more
than tilting small and value
Can be adjusted quarterly or annually
Should not increase transaction costs
Can be implemented using relatively
historical ratio of 10-year P/E ratios
27. 15% iShares MSCI Hong Kong Index (EWH)
15% iShares MSCI Singapore Index (EWS)
15% iShares MSCI Australia Index (EWA)
15% iShares MSCI Switzerland Index (EWL)
10% iShares MSCI Canada Index (EWC)
30% Vanguard MSCI Emerging Markets (VWO)
30. The Importance of
Asset Allocation
Short US Foreign US Foreign Hard
Age
Money Bonds Bonds Stocks Stocks Assets
20 0.0% 0.0% 0.0% 40.2% 45.6% 14.0%
30 3.0% 2.2% 2.2% 36.2% 40.8% 15.6%
40 3.0% 5.8% 5.8% 32.2% 35.2% 17.0%
50 3.0% 7.7% 7.7% 30.0% 34.0% 17.6%
60 3.0% 9.7% 9.7% 27.9% 31.5% 18.2%
70 5.0% 13.6% 13.6% 22.8% 25.8% 19.2%
80 5.0% 18.7% 18.7% 17.7% 20.0% 19.9%
31. 3% Money Market
9.7% PIMCO Total Return (PTTRX/PTTDX)
9.7% PIMCO Emerging Bonds (PEBIX/PEMDX)
22.3% Vanguard S&P 500 ETF (VOO)
5.6% Vanguard Information Tech ETF (VGT)
4.7% iShares MSCI Hong Kong Index (EWH)
4.7% iShares MSCI Singapore Index (EWS)
4.7% iShares MSCI Australia Index (EWA)
4.7% iShares MSCI Switzerland Index (EWL)
3.2% iShares MSCI Canada Index (EWC)
9.5% Vanguard MSCI Emerging Markets (VWO)
10.9% iShares NAmer Natural Resources (IGE)
7.3% Vanguard U.S. REIT (VNQ)
32.
33. The Importance of
Asset Allocation
Summary
Invest in all 6 asset classes
Use index ETFs with low expense ratios
Tilt value and small for US stocks
Tilt Foreign toward specific countries
Monitor and rebalance annually
34. Ten Best ETFs of 2012
David John Marotta
Marotta Wealth Management
www.MarottaOnMoney.com