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