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
Performance
Author
Overview
Articles
Books
Discussion
Alternatives

Asset Allocation

%	Asset Class
6.25%	Large Cap Blend Stocks
9.25%	Large Cap Value Stocks
6.25%	Small Cap Growth Stocks
9.25%	Small Cap Value Stocks
31%	International Large Cap Blend 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.

Performance

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

Portfolio Charts

Author

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.

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