What does an optimally designed portfolio look like?

Every well-built house has a strong foundation and your investment portfolio should be the same. Host, Ron DeLegge explains how building a core investment portfolio on a solid foundation of low-cost ETFs is a winning strategy. He also explains how the non-core portion of your investments compliment the core. Subscribe to the ETF Profit Strategy Newsletter @http://www.etfguide.com/newsletter 70% of our Weekly Picks were winners. What's in your wallet?

Comments

1. So-called "low cost" core can actually be very expensive. Here's how. Let's consider your U.S. equity portfolio and assume you're using core-satellite, where "satellite" managers are high cost active managers, let's say a value manager and a growth manager. The "core" you recommend, SCHB, is Schwab's Total Market index. It holds hundreds of value stocks and hundreds of growth stocks, most of which active managers deem unworthy -- they are dead weight stocks. These dead weights reduce the value added by your active managers, so this version of "core" is actually very expensive. It's"Blend" core which is very dilutive of active managers 
   
   You really want to use a special version of core that does undermine active manager decisions. I call it "Centric Core" a redundant but necessary name to differentiate it from the misnomer currently used -- "core." Centric core comprises the stocks in between value & growth. These are good companies that active managers generally don't hold because they are not in value or growth mandates. Centric Core is a superior diversifying partner for core-satellite.  
2. Ron,
   
   Great video for an investor. Investing can be very simple by following your basis.
   
   Darwin