Ideal Index Portfolio

The Ideal Index Portfolio is recommended by Frank Armstrong in his book The Informed Investor: A Hype-Free Guide to Constructing a Sound Financial Portfolio.

ideal-index-portfolio

Asset Allocation

  • 6.25% Large Cap Blend
  • 9.25% Large Cap Value
  • 6.25% Small Cap Blend¹
  • 9.25% Small Cap Value
  • 31% International
  • 30% Short Term Bonds
  • 8% REITs

Notes

  1. Armstrong specifically recommends Small Cap Growth. This is a relatively rare recommendation and index funds can be a little limited, so I allocated this portion to Small Cap Blend that contains both growth and value. Be sure to read Armstrong’s explanation to why he invests the way he does.

Performance

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