FPL Capital Management Portfolios can be built with 8-9 ETFs. They are exposed to between 10%-100% equities and 0-90% bonds. There are low-risk, medium-risk, and high-risk portfolios.
For the past 10 years, the FPL Capital Management Portfolio 60 has returned 7.57 with a standard deviation of 10.06. The dividend yield is 2.53. The 30-year return is 9.02%. Year to date the FPL Capital Management Portfolio 60 has returned 1.68%.
Article Contents
- What is the return of FPL Capital Management portfolios?
- Description of the FPL Capital Management portfolios
- How do you build the FPL Capital Management portfolios with ETFs?
- FPL Capital Management Portfolio 10
- FPL Capital Management Portfolio 20
- FPL Capital Management Portfolio 30
- FPL Capital Management Portfolio 40
- FPL Capital Management Portfolio 50
- FPL Capital Management Portfolio 60
- FPL Capital Management Portfolio 70
- FPL Capital Management Portfolio 80
- FPL Capital Management Portfolio 90
- FPL Capital Management Portfolio 100
- How we select the right ETFs
- Suggestions for your next steps
What is the return of FPL Capital Management portfolios?
| Name | Asset class count | Year to date | Return in 2020 | 10 year return | CAGR since 1989 (%) | Risk level | Expense ratio |
|---|---|---|---|---|---|---|---|
| FPL Capital Management Portfolio 10 | 9 | -0.41 | 7.25 | 4.45 | 6.62 | 1 | 0.05% |
| FPL Capital Management Portfolio 20 | 9 | 0.02 | 6.84 | 5.11 | 7.16 | 1 | 0.07% |
| FPL Capital Management Portfolio 30 | 9 | 0.44 | 6.41 | 5.75 | 7.67 | 1 | 0.09% |
| FPL Capital Management Portfolio 40 | 9 | 0.85 | 5.97 | 6.37 | 8.15 | 1 | 0.10% |
| FPL Capital Management Portfolio 50 | 9 | 1.27 | 5.54 | 6.98 | 8.6 | 1 | 0.12% |
| FPL Capital Management Portfolio 60 | 9 | 1.68 | 5.1 | 7.57 | 9.02 | 2 | 0.13% |
| FPL Capital Management Portfolio 70 | 9 | 2.1 | 4.67 | 8.16 | 9.42 | 2 | 0.15% |
| FPL Capital Management Portfolio 80 | 9 | 2.51 | 4.23 | 8.73 | 9.78 | 3 | 0.16% |
| FPL Capital Management Portfolio 90 | 9 | 2.93 | 3.8 | 9.28 | 10.11 | 3 | 0.18% |
| FPL Capital Management Portfolio 100 | 8 | 3.34 | 3.36 | 9.83 | 10.4 | 3 | 0.19% |
I came across FPL Capital Management a while back and was impressed by the portfolios employed.
Description of the FPL Capital Management portfolios
FPL Capital Management has a lot of portfolios. It can be very confusing when looking at them.
Add to that that they last year changed the 10 portfolios that I display here on portfolioeinstin.com. The change was done both concerning asset allocation and the funds that make up the asset allocation. They have shifted more towards factor-based funds instead of pure index funds. That makes them a little harder to benchmark against but not impossible.
As a consequence, the portfolios presented here represent the portfolios that were on their site two years ago.
The portfolios are generally tilted towards value-based investing with a hint of small caps thrown in. As value stocks historically have performed better than growth stocks this makes them ideal candidates for outperformance.
That is a beautiful representation of how stocks and bonds interact. The table shows how adding more stocks to a portfolio adds more risk but also adds higher returns.
The all-equity portfolio even manages to outperform the S&P 500 – very impressive!
The portfolios are similar to Index Fund Advisors: Market-Beating Portfolios and David Booth Portfolios: Home Runs For Days though slightly less complex.
How do you build the FPL Capital Management portfolios with ETFs?
FPL Capital Management Portfolio 10
- 2.00% US Large Cap Value (VTV)
- 2.00% US Large Cap (VV)
- 2.00% US Small Cap Value (VIOV)
- 0.50% REITs (VNQ)
- 1.00% International Large Cap Value (EFV)
- 90.00% Total US Bond Market (BND)
- 0.50% International Small Cap Value (DLS)
- 1.00% Emerging Markets Value (FNDE)
- 1.00% International REITs (VNQI)
FPL Capital Management Portfolio 20
- 4.00% US Large Cap Value (VTV)
- 4.00% US Large Cap (VV)
- 4.00% US Small Cap Value (VIOV)
- 1.00% REITs (VNQ)
- 2.00% International Lg Cap Value (EFV)
- 80.00% Total US Bond Market (BND)
- 2.00% International Small Cap Value (DLS)
- 2.00% Emerging Markets Value (FNDE)
- 1.00% International REITs (VNQI)
FPL Capital Management Portfolio 30
- 6.00% US Large Cap Value (VTV)
- 6.00% US Large Cap (VV)
- 6.00% US Small Cap Value (VIOV)
- 1.50% REITs (VNQ)
- 3.00% International Large Cap Value (EFV)
- 70.00% Total US Bond Market (BND)
- 3.00% International Small Cap Value (DLS)
- 3.00% Emerging Markets Value (FNDE)
- 1.50% International REITs (VNQI)
FPL Capital Management Portfolio 40
- 8.00% US Large Cap Value (VTV)
- 8.00% US Large Cap (VV)
- 8.00% US Small Cap Value (VIOV)
- 2.00% REITs (VNQ)
- 4.00% International Large Cap Value (EFV)
- 60.00% Total US Bond Market (BND)
- 4.00% International Small Cap Value (DLS)
- 4.00% Emerging Markets Value (FNDE)
- 2.00% International REITs (VNQI)
FPL Capital Management Portfolio 50
This portfolio is part of Portfolio Einstein Gold, Premium Portfolios.
FPL Capital Management Portfolio 60
- 12.00% US Large Cap Value (VTV)
- 12.00% US Large Cap (VV)
- 12.00% US Small Cap Value (VIOV)
- 3.00% REITs (VNQ)
- 6.00% International Large Cap Value (EFV)
- 40.00% Total US Bond Market (BND)
- 6.00% International Small Cap Value (DLS)
- 6.00% Emerging Markets Value (FNDE)
- 3.00% International REITs (VNQI)
FPL Capital Management Portfolio 70
- 14.00% US Large Cap Value (VTV)
- 14.00% US Large Cap (VV)
- 14.00% US Small Cap Value (VIOV)
- 3.50% REITs (VNQ)
- 7.00% International Large Cap Value (EFV)
- 30.00% Total US Bond Market (BND)
- 7.00% International Small Cap Value (DLS)
- 7.00% Emerging Markets Value (FNDE)
- 3.50% International REITs (VNQI)
FPL Capital Management Portfolio 80
This portfolio is part of Portfolio Einstein Gold, Premium Portfolios.
FPL Capital Management Portfolio 90
This portfolio is part of Portfolio Einstein Gold, Premium Portfolios.
FPL Capital Management Portfolio 100
This portfolio is part of Portfolio Einstein Gold, Premium Portfolios.
Check out the best mutual funds and ETFs here.
How we select the right ETFs
There are a lot of ETFs out there. Most of them can be discarded because:
- They are too expensive
- They hold too few assets and are therefore too illiquid
- They do not meet the criteria for representing the asset class they are supposed to mirror.
We have carefully selected an ETF for each asset class that the portfolios on portfolioeinstein.com use. If you want to read more about our selection process and see what we consider the best ETFs please visit our article What Is The Best ETF?
If you are a European investor you need to buy European ETFs. We list 47 best ETFs in our article What Are The Best ETFs For European Investors? (Here Is 47).
As of 2020 we also track socially responsible investing ESG portfolios. Socially responsible investing (ESG) portfolios prioritize investing that puts an emphasis on environmental, social and corporate governance issues.
You can find the socially responsible investing ESG ETFs in the same article.
Suggestions for your next steps
Finding the correct portfolio is hard. Maintaining your portfolio is also daunting. If you are still in doubt about which portfolio to choose, we suggest you read our article How To Invest Money: 5 Simple Steps That Work For Anyone
If you have already committed to a portfolio – good for you! If you need help maintaining the portfolio you will find our rebalance worksheet useful. Rebalancing your portfolio lowers your risk and may even provide higher returns in the long run.
You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool
