7Twelve Portfolio

The 7Twelve Portfolio is recommended by Craig Israelsen in his book 7Twelve: A Diversified Investment Portfolio with a Plan.  The name is derived from equally dividing your portfolio between 12 funds in 7 asset categories: domestic stocks, international stocks, real estate, resources, domestic bonds, international bonds, and cash.


Asset Allocation

  • 8.3% Large Cap Blend
  • 8.3% Mid Cap Blend
  • 8.3% Small Cap Blend
  • 8.3% International
  • 8.3% Emerging Markets
  • 25% Intermediate Bonds¹
  • 8.3% Cash
  • 16.6% Commodities²
  • 8.3% REITs


1) Israelsen specifically recommends equal parts Domestic Bonds, International Bonds, and TIPS.  Since I don’t have specific data for every asset, I allocated this portion to intermediate term bonds.  While this is a pretty good proxy that should model the design intent reasonably well, be sure to read Israelsen’s justifications for why he chooses the bonds he does.

2) He specifically recommends 8.3% commodities and 8.3% natural resources, but good data for natural resources is not available.  Keeping with his theme of having two equal segments in the “resources” category, I allocated the natural resources to the commodities portion.  There’s a decent amount of overlap in commodities and natural resources ETFs, so I anticipate this will not change the results all that much.


Change the home country to translate the portfolio to local assets, currency, and inflation

Click on the asset acronyms for detailed information in each country