Exchange Traded Funds (ETF’s) have exploded in popularity in recent years and while many are beneficial, just as many aren’t worth the time. So, I decided to create a few “Prototype Portfolio’s” with hope you could avoid some of the pitfalls I’ve endured (or am still enduring). Remember though, like you, I’m also an Unqualified Investor and the portfolio’s below are merely a starting point for consideration.
Disclaimer – I’m not a registered investment professional and am unlicensed to provide investment advice. You should always do your own research or contact a qualified professional prior to investing. Any reliance placed upon the prototype portfolio’s provided below will be at your own risk.
Prototype Portfolio’s
- Optimal Growth Prototype Portfolio
- Sustainable Dividend Prototype Portfolio
- Ultimate Dividend Growth Prototype Portfolio
- Maximum Income Prototype Portfolio
- Significant Value Prototype Portfolio
Prototype Portfolio’s Index
Optimal Growth Portfolio
This optimal growth focused portfolio consists of a mix of large-cap and small-cap growth opportunities. A diversified but growth first investment approach.
| Fund Symbol | Fund Name | Fund Details |
|---|---|---|
| QQQM | Invesco Nasdaq 100 | Tracks the Nasdaq 100 Index with a focus on innovative companies and technology. |
| SCHG | Schwab U.S. Large-Cap Growth | Exposure to large-cap growth stocks with a strong performance track record. |
| VOOG | Vanguard S&P 500 Growth | Includes stability & growth oriented stocks from the S&P 500. |
| VGT | Vanguard Information Technology | Focus on technology sector to capitalize on rapid growth. |
| SLYG | SPDR S&P 600 Small Cap Growth | Exposure to small cap growth stocks for diversification. |
Optimal Growth Portfolio Performance
*Click image to view live data. Data provided by TrackinSight.com.
Sustainable Dividend Portfolio
This sustainability focused dividend portfolio combines a mix of options for investors seeking a higher yield without erosion to portfolio value.
| Fund Symbol | Fund Name | Fund Details |
|---|---|---|
| SUSL | iShares MSCI USA Leaders | Focus on large & mid-cap stocks with high ESG Ratings. |
| FDVV | Fidelity High Dividend | Exposure to high dividend paying stocks with strong average annual return. |
| VYM | Vanguard High Dividend Yield | Strong average annual return with above average starting yield. |
| SCHD | Schwab U.S. Dividend Equity | Offers a balance of growth and income with above average starting yield. |
| QDF | FlexShares Quality Dividend | Focus on quality dividend paying companies with an emphasis on long term capital growth. |
Sustainable Dividend Portfolio Performance
*Click image to view live data. Data provided by TrackinSight.com.
Ultimate Dividend Growth Portfolio
An ultimate dividend growth portfolio for investors seeking a growing above all else.
| Fund Symbol | Fund Name | Fund Details |
|---|---|---|
| VIG | Vanguard Dividend Appreciation | Focus on companies with at least 10 years of consecutive dividend growth. |
| SCHD | Schwab U.S. Dividend Equity | Tracks the Dow Jones Dividend 100 Index with an emphasis on high yield stocks. |
| DGRO | iShares Core Dividend Growth | Invests in companies with at least five years of uninterrupted annual dividend raises. |
| NOBL | ProShares S&P 500 Dividend Aristocrats | Tracks companies that have increased dividends for at least 25 consecutive years. |
| VYM | Vanguard High Dividend Yield | Includes approximately 550 high yielding companies. |
Ultimate Dividend Growth Portfolio Performance
*Click image to view live data. Data provided by TrackinSight.com.
Maximum Income Portfolio
| Fund Symbol | Fund Name | Fund Details |
|---|---|---|
| JEPI | JPMorgan Equity Premium Income | Uses an options overlay strategy on U.S. large-cap stocks to generate additional income. |
| JEPQ | JPMorgan Nasdaq Equity Premium Income | Generates income by selling options on the Nasdaq-100. |
| PBP | Invesco S&P 500 BuyWrite | Buys S&P 500 stocks and writes call options to generate additional income. |
| DIVO | Amplify CWP Enhanced Dividend Income | Focuses on high-quality dividend growth stocks while using an options strategy to improve income. |
| IWMI | NEOS Russell 2000 High Income | Designed for income generation and exposure to small-cap equities. |
Maximum Income Portfolio Performance
*Click image to view live data. Data provided by TrackinSight.com.
Significant Value Portfolio
| Fund Symbol | Fund Name | Fund Details |
|---|---|---|
| VTV | Vanguard Value | Tracks the CRSP U.S. large-cap value index to provide exposure to large-cap value stocks. |
| IWD | iShares Russell 1000 Value | Tracks the Russell 1000 value index with a focus on mid to large-cap U.S stocks exhibiting value characteristics. |
| VOE | Vanguard Mid-Cap | Tracks the CRSP U.S. mid cap value for exposure to mid-cap value stocks. |
| VBR | Vanguard Small-Cap | Aims to track the CRSP U.S. small cap value index which focuses on small-ca value stocks. |
| SLYV | SPDR S&P 600 Small-Cap Value | Seeks investment results similar to the S&P Small-cap value index |
Significant Value Portfolio Performance
*Click image to view live data. Data provided by TrackinSight.com.
Final Thoughts
First, or last i guess, is always conduct your own research prior to investing. While I believe these prototype portfolio’s are an excellent mix for each respective category, they can certainly underperform. Each category of the prototype portfolio’s listed follows it’s objective to the letter. If dividend growth is the core philosophy then you won’t find a growth focused ETF in that portfolio and the same goes for each different investing philosophy.
Finally, I hold many of the prototype portfolio’s ETF’s in my own portfolio. Have a look at my Unqualified Portfolio here. Many of the ETF’s I don’t hold listed here, I honestly wish I did. I think the most important point with regard to any of the investing philosophies is to avoid the extremes. For instance, if maximum income is the goal then it’s probably sound advice to avoid those assets providing an unstable level of income.
In all, these prototype portfolio’s will provide a solid foundation from which to begin your own research. They may not be an optimal mix in every possible way but they meet my target objectives. I hope you enjoy taking a closer look at the prototype portfolio’s I’ve provided and please reach out if I can ever assist.
God bless,
Jeff