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Figure 25.1: US Equities/Bonds 60/40 ETF Portfolio
Because of the 2008 crash the portfolio is underwater for 1242 days–almost 3 1/2 years–
compared to the benchmark’s 1365 days. Be aware however that this period has had a dramatic
effect on nearly any ETF portfolio, given the heavy US bias of most ETFs in existence.
25.5.3 "Strategic" Weight ETF Portfolio
The tearsheet for the strategy is given in Figure 25.2.
As above the benchmark is provided by a buy-and-hold portfolio (i.e. no monthly rebalancing)
solely of the SPY ETF.
In the strategic weight portfolio an attempt was made to replicate the portfolio found within
this article[80]. However, suitable instruments could not be obtained to replicate the specific
indices of VWEXH, RPIBX, PREMX and VGSIX. These represent US junk bonds, foreign
developed markets bonds, emerging markets bonds and US REITs respectively.
In addition it was difficult to locate sufficient data for ETFs intended to represent RPIBX