Bond ETF model

Alpha Portfolios Model ETF Managed Investment Portfolios

The Bond ETF model

Strategy provides a best of breed diversified fixed income portfolio

Bond Fixed Income ETF Model Investment Portfolio

Bond Fixed Income ETF Model Investment Portfolio

The results of this model portfolio are based on a backtest, which is a representations of a portfolio and which does not include any kind of fees, including but not limited to brokerage, management or other fees. The backtest results are hypothetical and actual results will vary. Performance of this model portfolio may differ substantially from the results of the backtest depicted here. Please see Portfolio and Backtest disclosures about this model portfolio.

Investment Philosophy

  • Exposure to fixed income securities is an important aspect of a strategic asset allocation and portfolio diversification
  • Fixed income securities typically provide income to the investor
  • Fixed Income model invests in liquid Exchange Traded Funds to minimize costs

Investment Process

Fixed Income strategy utilizes a diversified investment approach to various fixed income securities. Strategy allocates various exposures to different fixed income securities with various durations and credit ratings, including investment grade and high yield. Strategy invests in domestic, international and emerging markets. Strategy is always invested in the market.

Performance

Bond Fixed Income ETF Model Investment Portfolio

"AGG" - iShares Core Total US Bond Market ETF (AGG-NYSEArca) actual results
"BND" - Vanguard Total Bond Market ETF (BND-NYSEArca) actual results
Sources: Rockledge, Compustat, Yahoo 
Backtested performance

Benefits of the Portfolio

  • Designed to outperform the fixed income benchmark in up and down markets
  • Aim to provide higher risk adjusted returns relative to fixed income benchmark
  • Liquid holdings
  • Diversified holdings minimize individual fixed income specific risk

Who Should Invest

  • Investors looking for long term capital appreciation from bonds
  • Investors who are seeking to receive income from their portfolios
  • Investors who are comfortable with low to medium investment risk
  • Investors seeking to diversify their portfolios

Portfolio Allocation - Bond strategy

Holdings for October 2014

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Ticker Description Weight
BKLN PowerShares Senior Loan Port 7%
BSV Vanguard Short-Term Bond ETF 5%
BWX SPDR Barclays International Treasury Bd 13%
CSJ iShares 1-3 Year Credit Bond 7%
CWB SPDR Barclays Capital Convertible Secs 7%
EMB iShares JPMorgan USD Emerg Markets Bond 5%
HYLD AdvisorShares Peritus High Yield ETF 7%
HYT BlackRock Corporate High Yield Fund VI 7%
IBND SPDR Barclays International Corporate Bd 13%
IEI iShares 7-10 Year Treasury Bond 4%
LQD iShares iBoxx $ Invst Grade Crp Bond 7%
MUB iShares National AMT-Free Muni Bond 3%
NEA Nuveen AMT-Free Municipal Incom 3%
PCY PowerShares Emerging Mkts Sovereign Debt 5%
SHY iShares 1-3 Year Treasury Bond 4%
TIP iShares 20+ Year Treasury Bond 4%

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