7Twelve Portfolio Review - A Case of Diworsification?

Описание: Get this portfolio here: https://optimizedportfolio.com/go/7tw...

The 7Twelve Portfolio is equally-weighted diversification. Here we’ll review its components, performance, and the best ETFs to use in its implementation.

// TIMESTAMPS:

00:00 - Intro
00:08 - What Is the 7Twelve Portfolio?
01:53 - 7Twelve Portfolio Performance
02:57 - 7Twelve Portfolio Review
07:55 - How To Build with ETFs

// SUMMARY:

Craig L. Israelsen, Ph.D. designed the 7Twelve Portfolio. He is an Executive-in-Residence in the Financial Planning Program at Utah Valley University (UVU). His most popular book is 7Twelve: A Diversified Investment Portfolio with a Plan - https://amzn.to/3j5morE

The 7Twelve Portfolio is a lazy portfolio that takes diversification to the max, utilizing 12 different funds, equally weighted, across 7 asset “groups.”

Israelsen maintains that “the performance of a diversified portfolio is more important than the performance of any individual fund.” I completely agree. This is basically the foundation of modern portfolio theory.

The 7Twelve Portfolio uses 12 funds, each comprising 1/12 (8.3%) of the portfolio, across these 7 asset “groups”:

U.S. Stocks
International Stocks
REITs
Resources/Materials
U.S. Bonds
International Bonds
Cash

The 7Twelve Portfolio seems better suited for a seasoned, semi-active investor who is going to take the time to research the potential merits of the assets and their allocations, not for an armchair retail investor who needs to simply take it as face value and trust in its ability to generate long-term returns and mitigate risk. Again, I would submit that a simpler portfolio would be easier for that investor to grasp and get behind without wavering. Ironically, those simpler options may also yield similar returns with lower risk.

Get this portfolio here: https://optimizedportfolio.com/go/7tw...

Read the blog post here: https://www.optimizedportfolio.com/7t...

#lazyportfolio #lazyportfolios #diversification

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Disclaimer: This is not financial advice, investing advice, or tax advice. The information presented is for informational, educational, and entertainment purposes only. Investment products discussed are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here: https://www.optimizedportfolio.com/te...

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