Build Research Affiliates Portfolios With ETFs
Learn to build Research Affiliates model portfolios. How do they compare to the very best portfolios?
If you’re looking for income, then one of these portfolios should be on your radar.
We have compared the dividend yields of over 600 portfolios and present you with top 20 yielding portfolios.
Article contents
Here are the best income portfolios
Below you can see the portfolios with the highest 12-month trailing dividend yield.
Portfolio data was last updated on 1st of June 2023, 06:35 ET
| Name | See Portfolio | Year to date | Return in 2022 | 10 year return | CAGR since 1989 (%) | Draw Down | Expense ratio | Yield % |
|---|---|---|---|---|---|---|---|---|
| Rick Ferri Inflation Fighter Core-4 Portfolio Low-Risk |  | 2.46 | -12.12 | 3.0 | 6.52 | -12.27 | 0.09% | 4.54 |
| Institute of Business and Finance Income Portfolio | Coming soon! | 0.99 | -11.09 | 1.63 | 5.97 | -11.09 | 0.15% | 4.24 |
| Scott Burns Couch Potato | | 5.29 | -11.24 | 7.01 | 8.39 | -19.89 | 0.04% | 4.21 |
| Larry Swedroe Simple Portfolio | | -0.18 | -6.71 | 5.96 | 8.23 | -23.8 | 0.12% | 4.21 |
| Dimensional Retirement Income Fund | | 2.64 | -6.8 | 2.97 | 6.15 | -7.73 | 0.05% | 4.18 |
| Bogleheads Guide to Investing - An Investor in Late Retirement | Coming soon! | 2.93 | -10.33 | 3.54 | 6.7 | -10.33 | 0.04% | 4.07 |
| William Bernstein Sheltered Sam 100% Bonds | | 1.25 | -4.56 | 1.43 | 5.11 | -4.56 | 0.05% | 3.99 |
| Rick Ferri Inflation Fighter Core-4 Portfolio Conservative | | 3.34 | -13.8 | 4.35 | 6.95 | -19.65 | 0.09% | 3.97 |
| Rick Ferri Income Seeker Core-4 Portfolio Low-Risk | | 0.04 | -14.77 | 3.59 | 6.78 | -16.15 | 0.21% | 3.86 |
| William Bernstein Sheltered Sam 10/90 | | 1.22 | -5.31 | 2.27 | 5.64 | -7.21 | 0.06% | 3.84 |
| Larry Swedroe, Eliminate Fat Tails Portfolio (value tilt) | | 0.33 | -5.69 | 2.78 | 6.51 | -13.55 | 0.10% | 3.81 |
| The Andrew Tobias Portfolio | | 4.97 | -12.75 | 6.15 | 7.34 | -28.05 | 0.05% | 3.78 |
| Scott Burns Margaritaville | | 4.97 | -12.75 | 6.15 | 7.34 | -28.05 | 0.05% | 3.78 |
| Morningstar Lifetime Allocation Index Conservative, Income | | 1.71 | -9.37 | 3.05 | 6.48 | -9.37 | 0.08% | 3.73 |
| Rick Ferri Income Seeker Core-4 Portfolio Conservative | | -0.77 | -11.55 | 5.07 | 7.33 | -21.07 | 0.20% | 3.72 |
| William Bernstein Sheltered Sam 20/80 | | 1.18 | -6.07 | 3.09 | 6.15 | -10.51 | 0.06% | 3.68 |
| Dimensional 2030 Target Date Retirement Income Fund | | 4.74 | -12.03 | 5.9 | 7.66 | -22.61 | 0.05% | 3.65 |
| Rick Ferri Income Seeker Core-4 Portfolio Moderate | | -1.57 | -8.32 | 6.49 | 7.81 | -26.0 | 0.18% | 3.58 |
| Bogleheads Guide to Investing - An Investor in Early Retirement | Coming soon! | 4.09 | -12.21 | 5.06 | 7.23 | -14.51 | 0.04% | 3.57 |
| William Bernstein Sheltered Sam 30/70 | | 1.14 | -6.83 | 3.9 | 6.64 | -13.82 | 0.07% | 3.52 |
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.
What is an income portfolio?
An income portfolio is a portfolio where the main objective is generating a sufficient income from the portfolio.
A capital appreciation portfolio on the other hand is a portfolio that seeks to maximize stock returns in the portfolio.
Which asset classes are good for income?
When building your income portfolio, you need to consider the choice of asset classes. This is because there are some asset classes that generate a far higher and consistent income than other portfolios.
Below you can see some of the asset classes that have consistent yields:
- Bonds
- REITs
- High-yield bonds
- Emerging market bonds
Should you pick an income portfolio or a high-returning portfolio?
Some like to depend on a steady income stream to pay for their expenses. The opposite of that is building a portfolio that rises in value over time. This is capital appreciation.
We have found that capital appreciation portfolios generate far higher returns than income portfolios. But they also come with higher drawdowns.
Below you can see the highest returning portfolios we benchmark. We call them the premium portfolios.
If you build a premium portfolio, you will not get as high a yield as with an income portfolio but you will most likely get a higher total return. Total return equals dividends + capital appreciation.
| Name | See Portfolio | Year to date | Return in 2022 | 10 year return | CAGR since 1989 (%) | Draw Down |
|---|---|---|---|---|---|---|
| Premium Portfolio |  | -1.07 | -18.03 | 9.46 | 10.8 | -35.42 |
| Premium Portfolio | | 0.13 | -11.98 | 11.25 | 10.38 | -35.26 |
| Premium Portfolio | | 9.69 | -18.19 | 12.52 | 10.28 | -37.63 |
| Premium Portfolio | | -2.2 | -13.08 | 8.28 | 10.2 | -36.46 |
| Premium Portfolio | | 3.96 | -18.75 | 7.0 | 10.19 | -44.88 |
| Premium Portfolio | | 8.81 | -19.51 | 12.08 | 10.19 | -37.0 |
| Premium Portfolio | | -3.94 | -13.91 | 9.7 | 10.16 | -40.85 |
| Premium Portfolio | | -2.05 | -13.22 | 8.31 | 10.08 | -36.35 |
| Premium Portfolio | | 1.4 | -16.94 | 7.59 | 9.99 | -37.91 |
| Premium Portfolio | | 8.04 | -18.87 | 11.03 | 9.84 | -32.78 |
Related questions
Are REITs a good investment?
REITs have historicly been a great investment. They have returned just about the same as stocks. A good ETF for REITs is Vanguard’s REIT ETF with the ticker symbol (VNQ).
