How many asset types do you use?

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fundtalker123
Posts: 901
Joined: Tue Feb 27, 2007 3:18 am

How many asset types do you use?

Post by fundtalker123 »

Sometimes think I should reduce, but currently use 10

Total stock index
Small value index
REIT index
Global ex-US
Foreign small value
Total bond
Short treasury index
TIPS index
Ibonds
CDs

Partly has to do with what is accessible in retirement accounts
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nedsaid
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Re: How many asset types do you use?

Post by nedsaid »

Probably too many. I bought a Microcap Index ETF after attending a couple Merriman seminars. It was interesting that a Morningstar analysis of this ETF indicated that small cap indexes beat this Microcap ETF pretty handily. Maybe Microcaps are really not an asset class at all and are just a less attractive segment of the small caps.

I also wanted the micro-cap because I wanted true small-cap stocks. Too many small cap funds are really mid-cap funds in disguise. Even a small-cap International ETF that I bought had lots of mid-caps in it. The reason for this is that mid-caps are more liquid and give you most of the small cap performance with a bit less risk. So a good mid-cap index could be a good proxy for small caps. Could we just collapse microcap, small cap, and mid cap into the Extended Market Index?

I am a slice and dice guy, but I wonder if the proponents of this strategy have slice the pie into too many pieces. I know that I use a lot of asset classes (or maybe more accurately sub classes).

The point is that we could get along with fewer asset classes and sacrifice little if anything in performance. Food for thought.
A fool and his money are good for business.
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nedsaid
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Re: How many asset types do you use?

Post by nedsaid »

Ditto Total Stock Index.
Ditto Small Value Index.
Ditto REIT Index.
Ditto Total Bond Index.
Ditto I Bonds.

I also like Emerging Markets.
A fool and his money are good for business.
555
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Re: How many asset types do you use?

Post by 555 »

vtanzi
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Joined: Sun Jan 13, 2008 9:58 am

Re: How many asset types do you use?

Post by vtanzi »

[quote="nedsaid"]Ditto Total Stock Index.
Ditto Small Value Index.
Ditto REIT Index.
Ditto Total Bond Index.
Ditto I Bonds.

in my opinion Total Bond, Total International, REIT, SMALL Cap, Large Cap if you are very conservative remove Small Cap
Trev H
Posts: 1896
Joined: Fri Mar 02, 2007 9:47 pm

Re: How many asset types do you use?

Post by Trev H »

US Large Market
US Small Value
Intl Large Value (Including EM)
Intl Small Market (including EM)
InterTerm Bonds
TIPS
Land 30 acres with Home, nice timber, woodland agricultural project which will produce retirement income.
Land 4.3 acres with Home (currently for sale)
Land 200 acres with nice timber, woodland agricultural project which will produce retirement income.
Cash (mostly EF).

Trev H
Johm221122
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Re: How many asset types do you use?

Post by Johm221122 »

Large cap
extetended market
Small value
Reits
International
International small
Income fund
Stable value/savings bonds/savings account

John
z3r0c00l
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Location: NYC

Re: How many asset types do you use?

Post by z3r0c00l »

woodland agricultural project which will produce retirement income.
Xmas trees or truffles?
Last edited by z3r0c00l on Sun Jan 20, 2013 9:26 am, edited 1 time in total.
70% Global Stocks / 30% Bonds
ResNullius
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Joined: Wed Oct 24, 2007 3:22 pm

Re: How many asset types do you use?

Post by ResNullius »

All with Vanguard: SP500, Total Market, Short Investment Grade, Intermediate Investment Grade. Plus some cash in the bank.
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Quasimodo
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Re: How many asset types do you use?

Post by Quasimodo »

Stocks, gold bullion, Bonds and Money Market Fund.

John
Many wealthy people are little more than janitors of their possessions. | | Frank Lloyd Wright, architect (1867-1959)
dbr
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Re: How many asset types do you use?

Post by dbr »

fundtalker123 wrote:Sometimes think I should reduce, but currently use 10

Total stock index
Small value index
REIT index
Global ex-US
Foreign small value
Total bond
Short treasury index
TIPS index
Ibonds
CDs

Partly has to do with what is accessible in retirement accounts
That list isn't really well formed. Juxtaposing TSM, SV, and REIT really means that you invest in all (9 and REIT) of the classic asset classes in the total stock market and you tilt to SV and to REIT, both of which are also included in TSM. The same issue applies that total bond is not a class of bond assets. I think a more accurate description or question would be what array of funds do you use for investing.
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