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.
What are Research Affiliates' portfolios?
The Research Affiliates portfolios are a set of 4 model portfolios designed by the research firm and wealth manager firm Research Affiliates. The portfolios are diversified across 3 main asset class types. The model portfolios of Research Affiliates are overweight value stocks.
Article contents
How do you build Research Affiliates' portfolios with ETFs?
This is the asset allocation for the Research Affiliates moderate portfolio.
- 17.70% US Large Cap Value (VTV)
- 4.60% US Large Cap Growth (VUG)
- 6.10% US Small Cap (VIOO)
- 11.80% International Large Cap Value (EFV)
- 5.20% International Large Cap Growth (VEU)
- 4.90% International Small Cap Blend (VSS)
- 5.60% Emerging Markets (VWO)
- 1.40% Commodities (DBC)
- 8.00% TIPS (VTIP)
- 15.6% Total US Bond Market (BND)
- 14.80% Long-Term Treasuries (TLT)
- 4.40% Short-Term Treasuries (VGSH)
What is the historical return of the Research Affiliates' portfolios?
Portfolio data was last updated on 11th of August 2023, 08:35 ET
| Name | Year to date | Return in 2022 | 10 year return | CAGR since 1989 (%) | Draw Down | Expense ratio | Yield |
|---|---|---|---|---|---|---|---|
| Research Affiliates Conservative Portfolio | 1.48 | -11.80% | 3.69 | 6.76 | -11.8 | 0.09 | 2.79 |
| Research Affiliates Moderate Portfolio | 2.62 | -12.47% | 4.9 | 7.58 | -19.4 | 0.12 | 2.97 |
| Research Affiliates Aggressive Portfolio | 5.18 | -12.77% | 6.43 | 8.25 | -31.28 | 0.13 | 3.02 |
| Research Affiliates All Equity Portfolio | 7.82 | -13.14% | 7.04 | 7.87 | -42.79 | 0.12 | 2.75 |
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.
How do Research Affiliates' portfolios compare to the best portfolios?
Below you can see the returns of the best portfolios we benchmarked.
| Name | See Portfolio | Year to date | Return in 2022 | 10 year return | CAGR since 1989 (%) | Draw Down |
|---|---|---|---|---|---|---|
| Ben Stein Retirement | Coming soon! | 4.05 | -18.03 | 9.46 | 10.8 | -35.42 |
| Paul Merriman 4-Fund-Portfolio | Coming soon! | 9.22 | -11.98 | 11.25 | 10.38 | -35.26 |
| S&P 500 | Coming soon! | 17.09 | -18.19 | 12.52 | 10.28 | -37.63 |
| Paul Merriman Target Date Portfolio (25 year old) | Coming soon! | 6.63 | -13.08 | 8.28 | 10.2 | -36.46 |
| Scott Adams Dilbert Portfolio | Coming soon! | 10.87 | -18.75 | 7.0 | 10.19 | -44.88 |
| JL Collins, Simple Path To Wealth, Wealth Building Portfolio | Coming soon! | 16.6 | -19.51 | 12.08 | 10.19 | -37.0 |
| American Institute of Individual Investors (AAII) Portfolio | Coming soon! | 3.74 | -13.91 | 9.7 | 10.16 | -40.85 |
| Paul Merriman Target Date Portfolio (35 year old) | Coming soon! | 6.57 | -13.22 | 8.31 | 10.08 | -36.35 |
| Assetbuilder.com Portfolio 14 | Coming soon! | 6.95 | -16.94 | 7.59 | 9.99 | -37.91 |
| Balanced Portfolio 90/10 | Coming soon! | 14.83 | -18.87 | 11.03 | 9.84 | -32.78 |
Who are Research Affiliates?
Research Affiliates is a firm founded and led by Rob Arnott. Rob Arnott is intensely focused on bringing research and rigor to the investment field.
Rob Arnott has written or co-written over 300 academic papers on investment-related matters.
Research Affiliates license their propriety indices. One of the indexes pioneered by Research Affiliates is the RAFI indices.
The RAFI Fundamental Index™ strategy is built on the principles of contrarian investing and disciplined rebalancing.
RAFI.com
Rob Arnott is the founder of Research Affiliates and has written a fantastic book on how to build a better index.
The book is called The The Fundamental Index: A Better Way to Invest and is a very clear guide on why fx. the RAFI index will perform better than a market-weighted index.
The Fundamental Index: A Better Way to Invest
How are Research Affiliates structured?
Research Affiliates' model portfolios are built around 3 main types of asset classes.
- Stocks
- Diversifiers, such as REITs, commodities, EM bonds, high-yield bonds, and TIPS.
- Traditional bonds
The model portfolios are dynamic so they change their allocations over time.
They tend to favor value stocks and are overweight this asset class.
The portfolios you see here are how the portfolios looked like on 6/30-2021.
What is the asset allocation of Research Affiliates' portfolios?
Here are the asset allocations for Research Affiliates 4 model portfolios.
Important note! Research Affiliates use different ETFs than the ones listed below! They utilize ETFs that use their own methodology to target the asset classes. You can see which they use here.. Furthermore, the portfolios are dynamic so the asset allocations change over time due to market conditions.
Research Affiliates Conservative Portfolio
- 12.40% US Large Cap Value (VTV)
- 2.90% US Large Cap Growth (VUG)
- 4.20% US Small Cap (VIOO)
- 8.30% International Large Cap Value (EFV)
- 3.50% International Large Cap Growth (VEU)
- 2.80% International Small Cap Blend (VSS)
- 3.33% Emerging Markets (VWO)
- 7.00% TIPS (VTIP)
- 2.00% Non-US Bonds (BNDX)
- 30.70% Total US Bond Market (BND)
- 10.20% Long-Term Treasuries (TLT)
- 12.80% Short-Term Treasuries (VGSH)
Research Affiliates Moderate Portfolio
- 17.70% US Large Cap Value (VTV)
- 4.60% US Large Cap Growth (VUG)
- 6.10% US Small Cap (VIOO)
- 11.80% International Large Cap Value (EFV)
- 5.20% International Large Cap Growth (VEU)
- 4.90% International Small Cap Blend (VSS)
- 5.60% Emerging Markets (VWO)
- 1.40% Commodities (DBC)
- 8.00% TIPS (VTIP)
- 15.6% Total US Bond Market (BND)
- 14.80% Long-Term Treasuries (TLT)
- 4.40% Short-Term Treasuries (VGSH)
Research Affiliates Aggressive Portfolio
- 20.10% US Large Cap Value (VTV)
- 11.60% US Large Cap Growth (VUG)
- 8.20% US Small Cap (VIOO)
- 15.5% International Large Cap Value (EFV)
- 8.60% International Large Cap Growth (VEU)
- 6.40% International Small Cap Blend (VSS)
- 9.60% Emerging Markets (VWO)
- 1.20% Commodities (DBC)
- 7.00% TIPS (VTIP)
- 11.80% Long-Term Treasuries (TLT)
Research Affiliates All Equity
- 18.00% US Large Cap Value (VTV)
- 15.40% US Large Cap Growth (VUG)
- 7.90% US Small Cap (VIOO)
- 15.00% International Large Cap Value (EFV)
- 17.60% International Large Cap Growth (VEU)
- 13.40% International Small Cap Blend (VSS)
- 12.70% Emerging Markets (VWO)
Where can I learn more about Research Affiliates
You can go to their website which is a treasure trove of information and statistics.
Rob Arnott, the founder of Research Affiliates has appeared on many financial and investing podcasts, use this search to find them all.
Be sure to check out Rob Arnott’s book on building a better mousetrap.
The Fundamental Index: A Better Way to Invest
Suggestions for your next steps
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.
Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.
You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.
Related questions
Are the model portfolios by Research Affiliates good?
The model portfolios by Research Affiliates are well-diversified but do not have the highest return of the over 600 portfolios we benchmark.
What does Research Affiliates do?
Research Affiliates are leader within smart-beta allocation strategies. Research Affiliates are data driven in all of their researach.
