-
“Open Source” Portfolios is our name for investment allocation models recommended by third-party firms that are available freely on the internet. These portfolios often provide specific security recommendation or sometimes just suggest the asset allocation (leaving the specific fund selection to you).
Portfolio generally consist of either mutual funds or exchange traded funds (ETFs), and almost always use low-cost index funds to provide exposure to each asset class.
Investment portfolios often include investments in:
- Domestic Equities (stocks)
- International Equities (developed and emerging markets)
- Fixed Income (bonds)
- Real Assets (real estate, gold, etc.)
-
Third-party Portfolios – Examples
Coffeehouse Investor
Vanguard
LifeStrategy funds from Vanguard invest in four underlying funds. The mix is adjusted depending on the level of risk desired. Look at fund’s portfolio holdings to see asset allocation.
-
Wealthfront
Similar to Betterment, this robo-advisor presents their recommended asset allocations in a white paper. Click the link below and scroll down to figure #1 (for taxable accounts) and figure #3 (for retirement accounts). Based on the level of risk you desire (1 to 10), you can see the recommended allocation across asset classes.
-
Betterment
It takes a little digging, but you can see this robo-advisor’s asset allocation recommendation displayed in a chart. Click the link below and scroll down to figure #2. Based on the percent allocation to stocks, you can see how the allocation across asset classes.
