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Models + Your CFP®: Clear Investment Goals. Broad Diversification. Low Costs. Disciplined Approach

Models + Your CFP®: Clear Investment Goals. Broad Diversification. Low Costs. Disciplined Approach

| September 07, 2020

Definition and Investment Strategy

"The Vanguard total return model portfolios seek to provide broad exposure to U.S. and international equities and U.S. and international investment-grade taxable bonds in an asset allocation framework."

Possible best practice: Your CFP® and models typically designed by CFA®s from sponsors

"Generic" model portfolios are often designed by CFA®s employed by sponsors. Your  CFP® can and should evaluate models, recommend which model(s) suit you best as well as modify to better meet your goals.

Vanguard ETF Strategic Models Offer:

  1. Very broad diversification encompassing more than 19,000 global stocks and bonds
  2. Diversified Index investments that can help alleviate active manager risk in portfolios through lower return variability and low turnover
  3. ETFs for transparency, low costs and possible tax efficiency
  4. "Remarkably low costs, with weighted average expense ratios at 0.06%, enabling investors to keep more of their returns."
  5. Preselected portfolios all the way from 100% equity to 100% fixed at all of the 10% intervals, e.g. 90%-10%, 80%-20% ... 10%-90% and everywhere in between.

A diversified portfolio does not assure a profit or protect against loss in a declining market.

Investors should consider the investment objectives, risks and charges and expenses of the funds carefully before investing. The prospectus contains this and other information about the funds.

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