When designing a portfolio several goals need to be considered. Here is a blueprint for portfolio construction.
- Build the portfolio using non=managed ETFs and index funds. Don't over complicate by using too many ETFs.
- Keep costs low by using inexpensive ETFs. For most investments we use Vanguard ETFs.
- When running a QPP analysis, set these standards.
- Projected return should exceed the projected return for the S&P 500 by one percentage point.
- Projected standard deviation (uncertainty) should be less than 15%.
- Return/Uncertainty ratio will exceed 0.60.
- Diversification Metric should exceed 40%.
Check out the following portfolio to see if these benchmarks are reached.