The Ideal Index Portfolio by Frank Armstrong seeks to increase return and reduce risks through smart asset choices and modern portfolio principles.
- 6.25% Large Cap Blend
- 9.25% Large Cap Value
- 6.25% Small Cap Growth
- 9.25% Small Cap Value
- 31% International Stocks
- 30% Short Term Bonds
- 8% REITs
The Portfolio Charts tools use round numbers, so I reallocated the portfolio slightly while preserving the original design intent as closely as possible.
Find country-specific versions and appropriate ETFs using the Performance charts.
A true student of financial theory, Armstrong presents the Ideal Index Portfolio as a well-considered way to use modern portfolio theory to improve investing outcomes. By demonstrating how smart asset choices can create a portfolio that both increases returns and reduced risk relative to more traditional options, he offers an intelligent and data-backed proposal suitable for any investor.
One of the most notable features of the Ideal Index portfolio is its inclusion of small cap growth stocks in the allocation. Combined with a healthy value tilt and a strong international flavor, it’s a good portfolio choice for investors less married to large cap US stocks and more interested in casting a wider net for portfolio returns.
Books about the Ideal Index Portfolio, and others by Frank Armstrong
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Insights that mention the Ideal Index Portfolio
Portfolios with a similar structure or design intent
Coffeehouse Portfolio — Similar assets, but with less international stocks
Merriman Ultimate — The same basic idea that subdivides international
Larry Portfolio — A shared philosophy with a different allocation approach
Change the home country to translate the portfolio to local assets, currency, and inflation.