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 the SoFi investment portfolios?
The SoFI portfolios are exposed to between 100% stocks and 100%. SoFi’s portfolios can be built with 3 – 8 ETFs.
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How do you build SoFi’s portfolios with ETFs?
Here is how you build SoFi’s portfolios with ETFs. This is for SoFi Model Portfolios Retirement Moderately Aggressive.
- 38% Total stock market (VTI)
- 32% International developed (VEA)
- 10% Emerging Markets (VWO)
- 15% Total Bond Market (BND)
What is the historical return for SoFi investment portfolios?
Here is the historical return for SoFi’s investment 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 |
|---|---|---|---|---|---|---|---|
| SoFi Model Portfolios Taxable Conservative | 0.27 | -7.4 | 1.69 | 4.7 | -7.4 | 0.06% | 2.16 |
| SoFi Model Portfolios Taxable Moderately Conservative | 3.9 | -10.54 | 3.74 | 6.06 | -11.45 | 0.05% | 2.23 |
| SoFi Model Portfolios Taxable Moderate | 7.54 | -13.55 | 5.61 | 7.13 | -23.95 | 0.05% | 2.3 |
| SoFi Model Portfolios Taxable Moderately Aggressive | 10.03 | -15.73 | 6.91 | 7.7 | -32.55 | 0.05% | 2.33 |
| SoFi Model Portfolios Taxable/Retirement Aggressive | 12.43 | -17.65 | 7.95 | 8.1 | -40.75 | 0.05% | 2.38 |
| SoFi Model Portfolios Retirement Conservative | -0.54 | -11.93 | 1.1 | 5.28 | -13.3 | 0.06% | 2.67 |
| SoFi Model Portfolios Retirement Moderately Conservative | 3.4 | -14.02 | 3.29 | 6.65 | -14.02 | 0.07% | 2.76 |
| SoFi Model Portfolios Retirement Moderate | 7.27 | -15.54 | 5.36 | 7.45 | -24.0 | 0.06% | 2.59 |
| SoFi Model Portfolios Retirement Moderately Aggressive | 9.87 | -16.97 | 6.72 | 7.92 | -32.52 | 0.06% | 2.55 |
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 SoFi’s portfolios compare to the best portfolios?
Below you can see the returns of the best portfolios that we have 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 |
What is SoFi?
Social Finance (commonly known as SoFi) is an American online personal finance company that provides student loan refinancing, mortgages, personal loans, investing, and banking.
We will focus on the investing part of SoFi in this article.
SoFi has had a rocketing career ever since it was founded in 2011. They are heavily into refinancing student loans.
SoFi is not roboadvisor per se. But they do have model portfolios. They make it easy for you to invest in their model portfolios.
Description for SoFi’s portfolios
SoFi’s most conservative retirement portfolios only hold bonds. Unless you have a truckload of money, you will run out of money in this (in 2020) low-interest environment. A better and measured approach is to use the bucket approach described by Christine Benz of Morningstar.
The other thing that SoFi does a little differently is its use of safe assets. A safe asset is an asset class in your portfolio that stabilizes your portfolios from wild swings in value and hopefully keeps up with inflation. Examples include bonds and short-term bonds.
SoFi also uses short-term bonds for this, but they also allocate a small portion (5-10%) to the asset class short-term high-yield bonds, A.K.A short-term junk bonds. This is very strange as this asset class is more volatile than short-term bonds. It does give a higher yield, but they are there to stabilize, not provide a higher return. A better approach would be to allocate to corporate bonds, junk bonds, or just a total bond fund.
The short-term high yield asset class is also a very rare asset class. It provides the worst of the junk bonds and short-term bonds. The asset class offers high volatility and low returns.
We do not have a time series describing the short-term high yield asset class. We use a corporate bond time series instead.
SoFi also uses a high-yield muni bond. We use a corporate bond time series as a proxy. They have similar returns and risks without the tax benefits, but we can use it for benchmarking purposes.
The aggressive portfolio is the same for taxable and retirement account.
SoFi also allocates to high-yield munis. To benchmark this asset class, we use corporate bonds as a proxy. The two asset classes have similar returns and risks, but the corporate bond does not the tax benefit. But we can use it for benchmarking purposes.
What is the asset allocation for SoFi investment portfolios?
Here is the asset allocation for SoFi’s investment portfolios.
Resources for the SoFi investment portfolios
Check out SoFi’s YouTube channel.
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.
