An “All Weather Portfolio” could have been maintained throughout the 20th Century using stocks and lightly leveraged bonds to produce a return equivalent to pure stock market investment but at a fraction of the draw-down and volatility.
The All Weather Portfolio is the right place to be, even in a rising interest rate environment. A durable, well tested and satisfying strategy.
Vanguard Life Strategy Funds – a look at the prospectus.
If I had to pick a single stock market investment, this would be it. Or at least something similar. The iShares MSCI World ETF.
The aim of so-called Smart Beta investing is to combine the benefits of passive investing with the perceived advantages of active investing strategies.
Do equal weighted stock market index tracking funds outperform conventional market cap weighted funds?