- A few days before we visited Vinder at his office, the advisor had met a new client with approximately $30 million in assets. He built the 53-year-old a model that’s 40% equities, 55% fixed income and 5% cash. That’s the efficient frontier for this client; the average allocation across his client base comes to 50% equities, 43% fixed-income; 5% managed futures, and 2% cash.
- The new client’s stocks are split into small-, mid-, and large-caps, and further divided into growth and value categoriesâ€”all through ETFs. In total, the portfolio uses 25 ETFs. Vinder looks for ETFs with the lowest possible fees, which means one less obstacle in matching the index’s return.
- The client gets exposure to traditional overseas markets through iShares MSCI EAFE (ticker: EFA). Emerging markets is split between the iShares MSCI Emerging Markets (EEM) and Vanguard MSCI Emerging Markets (VWO). Bond holdings include PowerShares National Muni Bonds (PZA), iShares iBoxx $ Investment Grade Corporate Bond (LQD) and the SPDR Barclays Capital High Yield Bond Index (JNK), which currently yields 7.1%.