An 8 ETF WisdomTree Lazy Portfolio

Roger Nusbaum submits: Paul Farrell had an interesting article on MarketWatch about a possible evolution of lazy portfolios.

In the article Farrell cited a version of a lazy portfolio put forth by Jeremy Siegel using WisdomTree funds. What I think is evolutionary is someone at Farrell's readership level allowing for the possibility that something new could be better. As a hasty generalization, it seems like a lot of the financial journalism luminaries are slow to embrace new things.

Per the article, Siegel's portfolio is as follows:

• Total Dividend Fund (DTD) -- 15%
• Earnings Index Fund (EXT) -- 15%
• DEFA Fund (DWM) -- 20%
• High Yield Equity Index (DHS) -- 10%
• DEFA High Yield Equity Index (DTH) -- 10%
• International Energy Sector (DKA) -- 10% (client holding)
• International Consumer Non Cyclical (DPN)-- 10% (this one is very heavy in healthcare stocks)
• Low P/E Index Fund (EZY) -- 10%

I wrote about a funky version of a lazy portfolio about six weeks ago. The intention with that post was not to come up with something I will use, but to illustrate that a lazy portfolio can draw in from many different places.

I should note that I have been a big fan of WisdomTree's dividend ETFs right from the start -- they seem like an obvious way to add value. But I am not so sure about the earnings ETFs just yet.

The laziness I put out was as follows;

• iShares DJ Dividend Select Index Fund (DVY) -- 25% (client holding)
• Rydex S&P Small Cap 600 Pure Value ETF (RZV) -- 15%
• WisdomTree DIEFA High Yielding Equity ETF (DTH) -- 25%
• BLDRS Emerging Market 50 ADR ETF (ADRE) -- 5% (client and personal holding)
• DB Gold ETF (DGL) -- 5%
• iShares TIP Fund (TIP) -- 20% (client holding)
• Advent Claymore Convertible Bond Fund (AVK) -- 5% (client holding)

To be clear, I don't have this mix for anyone -- it is just an academic exercise.

Generally I am not a fan of the concept, but that might just be a quirky bias on my part. I don't think the bias is because of what I do for work, as this blog gives away just about all the process, (as I think of it) but not really the names.

That Farrell allows for WisdomTree having a place at the table might mean that some folks who would not have otherwise looked at these funds now will, and I view that as a positive.

Comments

[StraightArrow]

Can you tell me where I can find Jeremy Siegel's article about the protfolio of Wisdon Tree's funds? I have tried wisdom tree and Jeremy Siegel's web sites and couldn't find it.

[RogerNusbaum]

the link is embedded into the first sentence of this article where it says "interesting article." It lists Siegel's portfolio there.