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.


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


  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.


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