Here Are The 20 Best Income Portfolios Built with ETFs for 2023
If you're looking for income then you should look at this list of the 20 best income portfolios.
Craig Israelsen’s 7Twelve Portfolio is exposed to 40% stocks 25% bonds and 35% alternatives including gold and REITs. It can be built with 12 ETFs.
Below you can see the historical returns for the 7Twelve portfolio
Portfolio data was last updated on 1st of June 2023, 06:35 ET
|Name||Year to date||Return in 2022||10 year return||CAGR since 1989 (%)||Draw Down||Expense ratio||Yield|
|7-Twelve Portfolio Age Based 50-60 by Craig Israelsen||0.94||-7.44||3.99||6.69||-18.09||0.15%||2.24|
|7-Twelve Portfolio Age Based 60-70 by Craig Israelsen||0.79||-5.24||3.21||5.76||-13.04||0.15%||2.11|
|7-Twelve Portfolio Age Based 70 Plus by Craig Israelsen||0.64||-3.03||2.4||4.79||-8.0||0.15%||1.97|
Here is what the table is showing you
Year to date: This shows what the portfolio has returned this year starting from the first trading day of the year.
10 Year return: This shows the compounded annualized growth rate over a ten-year period. The current year is excluded from calculations.
CAGR since 1989: This shows the compounded annualized growth rate since 1989. The current year is excluded from calculations.
Expense ratio: This shows the cost of holding the portfolio if you were to construct the portfolio using the proposed ETFs.
Yield: This is the expected dividend yield of the portfolio.
Please note that past performance is not a guarantee of future returns.
|Name||See Portfolio||Year to date||Return in 2022||10 year return||CAGR since 1989 (%)||Draw Down|
Here is how you build the 7Twelve portfolios with ETFs.
You can find the rest of the 7Twelve portfolios below.
The letters in brackets denote the stock symbol for the recommended ETF. You can look up the symbols at your stockbroker. You can see a listing of all the ETFs we recommend on this page.
Craig L. Israelsen, Ph.D., is an Executive-in-Residence in the Financial Planning Program at Utah Valley University. He developed the 7-Twelve portfolio to create a portfolio with massive diversification. In his book 7Twelve: A Diversified Investment Portfolio with a Plan, he lays out the portfolio. The portfolio consists of 7 asset classes and 12 funds (or ETFs) that invest in those asset classes.
Although we tongue-in-cheek allude to the fact that the 7Twelve portfolios are over diversified we very much welcome diversification. William Bernstein has long since demonstrated that a well-diversified portfolio lowers your risk and may lead to higher returns.
You really can’t have too much diversification. Consider the Total Stock Market ETF from Vanguard (VTI). It holds some 3000 companies. Now that’s diversification.
The problem with too much diversification is that you diversify into the wrong asset classes. The wrong asset classes are asset classes that depend more on speculation for their value to rise than human ingenuity and competition. Examples of these include investing in precious metals, wine, and most commodities.
Commodities have no intrinsic value and do not generate a steady stream of income like a real business.
The 7Twelve holds 8.33% in gold. It is a small allocation, but it could instead be directed towards a more productive asset class. The counter-argument to this is that it is productive because it provides diversification in downtimes.
The real strength of the 7Twelve investment portfolio is that it has a low drawdown, while still providing decent returns.
Below is a good commentary on the performance of the 7Twelve portfolio
Be sure you pick up Craig Israelsen’s very informative book.
Go here for the 7Twelve site. It’s excellent with many tables and articles by Craig Israelsen.
Craig Israelsen regularly publishes content on the 7Twelve strategy. You can find his library here.
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If you have already committed to a portfolio then maybe you need help maintaining the portfolio. In this case you will find our rebalance worksheet useful.
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You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.
The All-Weather portfolio is built by Ray Dalio and Tony Robbins. It has 30% stocks, 55% bonds, and 15% alternatives.
A lazy portfolio is a portfolio that requires little maintenance and is easy to build. The Couch Potato portfolio is an example of a lazy portfolio.