According to Paul Merriman, the Ultimate Buy-and-Hold Strategy “creates a sophisticated portfolio with worldwide stock diversification by adding value stocks, small company stocks and real estate funds to a traditional large-cap growth stock portfolio.”
- 6% Domestic Large Cap Blend ¹
- 6% Domestic Large Cap Value ¹
- 6% Domestic Small Cap Blend ¹
- 6% Domestic Small Cap Value ¹
- 6% World Large Cap Blend ²
- 6% World Large Cap Value ²
- 6% World Small Cap Blend ²
- 6% World Small Cap Value ²
- 6% Emerging Markets TSM
- 6% REITs ⁴
1) Countries other than the United States are modeled with local regional data instead of pure domestic data for these assets. CAN uses USA funds, while GER & UK use EUR funds.
2) The calculations assume that US investors use a World Ex-US fund while investors living in other countries use a World fund including the US.
3) Merriman specifically calls for 8% TIPS. I don’t have good data for this asset, but in an effort to maintain his design intent I added it to the intermediate term bond allocation. Be sure to read Merriman’s explanation for why he chooses the funds he does.
4) The data is based on USA REITs, but a broad global REIT fund is also a reasonably close alternative if no US fund is available.