An ETF Portfolio from XTF Advisors

 |  Includes: EFA, ICF, IWB, IWD, LQD, VB, VO
by: Roger Nusbaum

ETF Investor ran an article written by XTF Advisors, writes Roger Nusbaum. The article compares DVY (personal holding) and PEY. It is a good read if you are interested in dividend paying ETFs.

I was more interested to see what XTF does in the way of all ETF Portfolios. This the one sample I was able to find. I don't know if it is a real portfolio but it doesn't seem logical that a firm would create a fake portfolio with such detail.

XTF Portfolio

Either way lets assume its real. I plugged this portfolio into Morningstar assuming $100,000 invested.

Over the last twelve months this portfolio has almost exactly matched the returns of the S+P 500. Additionally the overall yield is 2.67% as of now and while it might have been a little different twelve months ago, you get the idea. The portfolio has had close to market returns with only 70% invested in equities. I'd say that is pretty good.

Also revealed in the Morningstar X-Ray is that it is heavily tilted toward value and noticeably overweight financials, 26% to 19% for the S+P 500.

Anyone may want to structure a portfolio differently than this or not but the take away here should be that a lot more firms will offer all ETF portfolios. If this type of product appeals to you I recommend asking for an X-Ray kind of report on what they propose or spend the money and figure it yourself on Morningstar, or something similar.

I think this particular portfolio does not have enough foreign and I think this is the wrong time to overweight financials but every portfolio has flaws. The two I see right away with this one are either right or wrong but I think there is value in having this type of information.


  • The XTF portfolio quoted in this article quotes the following ETFs (clicking on a link pulls up articles for the ETF in question): IWB, IWD, VB, VO, LQD, EFA, and ICF.
  • The complete list of funds (and links to articles about them) covered by ETF Investor.

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