Ideal Index Portfolio

The Ideal Index Portfolio by Frank Armstrong seeks to increase return and reduce risks through smart asset choices and modern portfolio principles.

Asset Allocation


  • 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
Asset Notes

The Portfolio Charts tools use round numbers, so I reallocated the portfolio slightly while preserving the original design intent as closely as possible.

Local Interpretations

Find country-specific versions and appropriate ETFs using the Performance charts.

Author


<strong>Frank Armstrong</strong>
Frank Armstrong

Frank Armstrong is a financial adviser and the founder of Investor Solutions. He writes about the Ideal Index Portfolio in the book The Informed Investor.

Overview


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.

Featured Discussion

Books


Books about the Ideal Index Portfolio, and others by Frank Armstrong

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Articles


Insights that mention the Ideal Index Portfolio

Discussion


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Alternatives


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

Performance


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