Portfolio using Exchange Traded Funds (ETF's) and Exchange Traded Closed End Funds (CEF's) to provide a widely diversified exposure to international stocks (85%) and bonds (15%). The theme is the continued trend that developing countries profitably grow at a pace that is faster than the developed countries like the US and Europe. Also, but to a lesser extent, it assumes that currencies of these countries tend to rise in value relative to the US dollar--hence the value of equities and debt securities in US $ terms will rise. (According to Morningstar Xray software, the FOLIO includes positions in more than 800 stocks and 170 bonds. More than 20% of equities are in Latin America, 30% in Asia-Emerging, and 35% in Asia-Developed. Mostly Large-Cap, but with around 20% Mid-Cap. Bonds are indicated to be generally "intermediate" term.) Standard Deviation ranges 130-160% of S&P500. The benchmark is the MSCI World (Ex US) Index.
Past performance does not predict future performance. Operating expenses for ETF's and CEF's add to the normal investment management and brokerage fees of the FOLIO program and tend to be higher for international investments. This FOLIO tends to be significantly more volatile than domestic equity.
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