Saturday, May 17, 2008

An Ideal ETF Portfolio



WSJ posted a portfolio that closely resembles mine. In a previous post, I blogged about having direct investment in a business (and not its stock) as a means of diversifying just because earnings( esp of small businesses) tend to be more stable than stocks. In a crude way, this can be achieved through private equity. You guessed it, there are ETFs for private equity too. Here is a snapshot of the portfolio -

Also, I made a mindmap of all the top level ETF categories that you need to consider to make it diversified. You can make it weighted more towards one level or the other depending on various factors (which is for another blog).

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