Sep 03
Asset Allocation of Passive Portfolio
Below is a table showing the asset allocation targets for the Passive Portfolio.
Note how the targets are skewed or tilted toward the value side of the investing spectrum. That worked very well during the bear market of the early 2000s but not as well in recent years. However, we will stick with the plan as we do not know which asset classes will perform best over the next year. REITs normally make up 10% of the portfolio, but with the housing and banking markets not doing well, we trimmed 5% off this asset class. Reducing the percentage in REITs is a decision we made well over a year ago. Such a decision is called Tactical Asset Allocation and something not recommended for beginning investors.
More details on the PP are available on Premium Content. Cost is approximately three cups of coffee per month.
| Size | Value | Blend | Growth |
| Large-Cap | 14% | 13% | |
| Mid-Cap | 15% | 13% | |
| Small-Cap | 13% | 5% | |
| International | 15% | ||
| Emerging Markets | 7% | ||
| REiTs | 5% | ||
| Cash | 0% |