Build the Market Beating Index Fund Advisor Portfolios With ETFs

What are the index Fund Advisor Portfolios?

Index Fund Advisors portfolios can be built with 9-15 ETFs. They are exposed to between 0-90% bonds and 10-100% equities. There are low-risk, medium-risk, and high-risk portfolios.

For the past 10 years, the Index Fund Advisors, Portfolio 80 has returned 10.35 with a standard deviation of 13.76. The dividend yield is 2.24%. The 30-year return is 9.62%. Year to date the Index Fund Advisors, Portfolio 80 has returned -9.18%.

Article Contents

How do you build Index Fund Advisors portfolios with ETFs?
What is the performance of the Index Fund Advisors Portfolios?
How do the Index Fund Advisors portfolios compare to the best portfolios?
Who is Index Fund Advisors (IFA)?
What is special about the Index Fund Advisors (IFA) Portfolios?
Asset Allocation of Index Fund Advisors (IFA) Portfolios
Alternatives to Index Fund Advisors (IFA) Portfolios
Suggestions for your next steps
Related questions

How do you build Index Fund Advisors portfolios with ETFs?

Below is how you build the Index Fund Advisors, Portfolio 80 with ETFs.

9.60% US Large Cap Value (VTV)
9.60% US Large Cap (VV)
16.00% US Small Cap Value (VIOV)
16.00% US Small Cap (VIOO)
2.00% REITs (VNQ)
3.20% Emerging Markets (VWO)
4.80% International Large Cap Value (EFV)
4.80% International Small Cap Blend (VSS)
5.00% Short Term Treasuries (VGSH)
4.80% International Small Cap Value (DLS)
4.00% Emerging Markets Small Cap (EWX)
3.20% Emerging Markets Value (FNDE)
5.00% 1 Year Fixed Income (BSV)
5.00% 2 Year Global Fixed Income (BNDX)
5.00% 5 Year Global Fixed Income (BND/BNDX)
2.00% International REITs (VNQI)

What is the performance of the Index Fund Advisors Portfolios?

Below you can see the historical return of the Index Fund Advisor’s portfolios.

Name	Asset class count	Year to date	Return in 2020	10 year return	CAGR since 1989 (%)	Risk level	Expense ratio
Index Fund Advisors, Portfolio 100	12	-10.02	6.31	12.43	10.77	3	0.18%
Index Fund Advisors, Portfolio 80	16	-9.18	5.97	10.35	9.62	3	0.15%
Index Fund Advisors, Portfolio 60	16	-8.34	5.64	8.22	8.33	2	0.13%
Index Fund Advisors, Portfolio 50	16	-7.92	5.47	7.14	7.64	2	0.12%
Index Fund Advisors, Portfolio 90	16	-9.89	6.95	11.24	10.13	3	0.17%
Index Fund Advisors, Portfolio 70	16	-9.06	6.53	9.2	8.94	2	0.14%
Index Fund Advisors, Portfolio 40	16	-7.83	5.89	6.05	6.92	1	0.10%
Index Fund Advisors, Portfolio 30	16	-7.41	5.68	4.98	6.18	1	0.09%
Index Fund Advisors, Portfolio 20	16	-7.0	5.47	3.89	5.42	1	0.08%
Index Fund Advisors, Portfolio 10	16	-6.59	5.26	2.79	4.63	1	0.07%

How do the Index Fund Advisors portfolios compare to the best portfolios?

Below you can see the returns of the best portfolios that we have benchmarked.

Name	Year to date	Return in 2020	10 year return	CAGR since 1989 (%)	Draw Down
Premium Portfolio	-12.97	18.29	16.52	11.28	-37.63%
Premium Portfolio	-12.98	18.11	11.03	11.21	-44.87%
Premium Portfolio	-13.6	19.7	14.99	10.85	-32.77%
Premium Portfolio	-8.98	3.19	11.85	10.99	-36.46%
Premium Portfolio	-9.17	3.66	11.87	10.88	-36.35%
Premium Portfolio	-14.04	21.03	16.29	11.25	-37.00%
Premium Portfolio	-9.45	8.7	14.47	11.14	-35.26%
Premium Portfolio	-11.1	7.48	11.45	10.93	-37.91%
Premium Portfolio	-9.97	5.36	13.2	11.81	-35.43%
Premium Portfolio	-8.76	3.42	13.15	10.99	-40.85%

Who is Index Fund Advisors (IFA)?

Index Fund Advisors’ investment portfolios are genuinely excellent. They provide high returns, and they are smartly made with help from Dimensional Fund Advisors.

Index Fund Advisors is headed up by Mark T. Hebner. It is an investment advisory firm using exclusively Dimensional Advisor Funds (DFA) and employing passive index strategies to achieve some very respectable returns.

IFA provides a wealth of fantastic information on investing on their site. Mark Hebner’s book Index Funds: The 12-Step Recovery Program for Active Investors is a great way to get up to speed on why indexing and passive investing is an excellent way to invest. Just recently IFA had a Galton Board made to describe how random distribution occurs. It is a fun little gadget that shows that returns from asset classes are mostly random.

What is special about the Index Fund Advisors (IFA) Portfolios?

IFA’s portfolios are characterized by the tilt towards value and small-cap. The portfolios also diversify into many asset classes. It helps as their returns are excellent. The free lunch of diversifying is working great.

The Random Walker – a fun but educational toy!

The IFA portfolios use Dimensional Fund Advisors funds, but their portfolios can be perfectly replicated using Vanguard ETFs or iShares ETFs without suffering any performance hit.

It may still be worth it to invest with IFA as you get access to their skillful financial advice as well as behavioral guidance. They also do tax-loss harvesting within their accounts. So even though it may look like it is cheaper to do it yourself the outcome depends on your psychological profile and financial situation.

Asset Allocation of Index Fund Advisors (IFA) Portfolios

index-fund-advisors-portfolio-60-Portfolio

Index Fund Advisors, Portfolio 10

1.20% US Large Cap Value (VTV)
1.20% US Large Cap (VV)
2.00% US Small Cap Value (VIOV)
2.00% US Small Cap (VIOO)
0.25% REITs (VNQ)
0.40% Emerging Markets (VWO)
0.60% International Large Cap Value (EFV)
0.60% International Small Cap Blend (VSS)
23.00% Short Term Treasuries (VGSH)
0.60% International Small Cap Value (DLS)
0.50% Emerging Markets Small Cap (EWX)
0.40% Emerging Markets Value (FNDE)
22.50% 1 Year Fixed Income (BSV)
22.50% 2 Year Global Fixed Income (BNDX)
22.50% 5 Year Global Fixed Income (BND/BNDX)
0.25% International REITs (VNQI)

Index Fund Advisors, Portfolio 20

2.40% US Large Cap Value (VTV)
2.40% US Large Cap (VV)
4.00% US Small Cap Value (VIOV)
4.00% US Small Cap (VIOO)
0.50% REITs (VNQ)
0.80% Emerging Markets (VWO)
1.20% International Large Cap Value (EFV)
1.20% International Small Cap Blend (VSS)
20.00% Short Term Treasuries (VGSH)
1.20% International Small Cap Value (DLS)
1.00% Emerging Markets Small Cap (EWX)
0.80% Emerging Markets Value (FNDE)
20.00% 1 Year Fixed Income (BSV)
20.00% 2 Year Global Fixed Income (BNDX)
20.00% 5 Year Global Fixed Income (BND/BNDX)
0.50% International REITs (VNQI)

Index Fund Advisors, Portfolio 30

3.60% US Large Cap Value (VTV)
3.60% US Large Cap (VV)
6.00% US Small Cap Value (VIOV)
6.00% US Small Cap (VIOO)
0.75% REITs (VNQ)
1.20% Emerging Markets (VWO)
1.80% International Large Cap Value (EFV)
1.80% International Small Cap Blend (VSS)
17.50% Short Term Treasuries (VGSH)
1.80% International Small Cap Value (DLS)
1.50% Emerging Markets Small Cap (EWX)
1.20% Emerging Markets Value (FNDE)
17.50% 1 Year Fixed Income (BSV)
17.50% 2 Year Global Fixed Income (BNDX)
17.50% 5 Year Global Fixed Income (BND/BNDX)
0.75% International REITs (VNQI)

Index Fund Advisors, Portfolio 40

4.80% US Large Cap Value (VTV)
4.80% US Large Cap (VV)
8.00% US Small Cap Value (VIOV)
8.00% US Small Cap (VIOO)
1.00% REITs (VNQ)
1.60% Emerging Markets (VWO)
2.40% International Large Cap Value (EFV)
2.40% International Small Cap Blend (VSS)
15.00% Short Term Treasuries (VGSH)
2.40% International Small Cap Value (DLS)
2.00% Emerging Markets Small Cap (EWX)
1.60% Emerging Markets Value (FNDE)
15.00% 1 Year Fixed Income (BSV)
15.00% 2 Year Global Fixed Income (BNDX)
15.00% 5 Year Global Fixed Income (BND/BNDX)
1.00% International REITs (VNQI)

Index Fund Advisors, Portfolio 50

6.00% US Large Cap Value (VTV)
6.00% US Large Cap (VV)
10.00% US Small Cap Value (VIOV)
10.00% US Small Cap (VIOO)
1.25% REITs (VNQ)
2.00% Emerging Markets (VWO)
3.00% International Large Cap Value (EFV)
3.00% International Small Cap Blend (VSS)
12.50% Short Term Treasuries (VGSH)
3.00% International Small Cap Value (DLS)
2.50% Emerging Markets Small Cap (EWX)
2.00% Emerging Markets Value (FNDE)
12.50% 1 Year Fixed Income (BSV)
12.50% 2 Year Global Fixed Income (BNDX)
12.50% 5 Year Global Fixed Income (BND/BNDX)
1.25% International REITs (VNQI)

Index Fund Advisors, Portfolio 60

7.20% US Large Cap Value (VTV)
7.20% US Large Cap (VV)
12.00% US Small Cap Value (VIOV)
12.00% US Small Cap (VIOO)
1.50% REITs (VNQ)
2.40% Emerging Markets (VWO)
3.60% International Large Cap Value (EFV)
3.60% International Small Cap Blend (VSS)
10.00% Short Term Treasuries (VGSH)
3.60% International Small Cap Value (DLS)
3.00% Emerging Markets Small Cap (EWX)
2.40% Emerging Markets Value (FNDE)
10.00% 1 Year Fixed Income (BSV)
10.00% 2 Year Global Fixed Income (BNDX)
10.00% 5 Year Global Fixed Income (BND/BNDX)
1.50% International REITs (VNQI)

Index Fund Advisors, Portfolio 70

8.40% US Large Cap Value (VTV)
8.40% US Large Cap (VV)
14.00% US Small Cap Value (VIOV)
14.00% US Small Cap (VIOO)
1.75% REITs (VNQ)
2.80% Emerging Markets (VWO)
4.20% International Large Cap Value (EFV)
4.20% International Small Cap Blend (VSS)
7.50% Short Term Treasuries (VGSH)
4.20% International Small Cap Value (DLS)
3.50% Emerging Markets Small Cap (EWX)
2.80% Emerging Markets Value (FNDE)
7.50% 1 Year Fixed Income (BSV)
7.50% 2 Year Global Fixed Income (BNDX)
7.50% 5 Year Global Fixed Income (BND/BNDX)
1.75% International REITs (VNQI)

Index Fund Advisors, Portfolio 80

9.60% US Large Cap Value (VTV)
9.60% US Large Cap (VV)
16.00% US Small Cap Value (VIOV)
16.00% US Small Cap (VIOO)
2.00% REITs (VNQ)
3.20% Emerging Markets (VWO)
4.80% International Large Cap Value (EFV)
4.80% International Small Cap Blend (VSS)
5.00% Short Term Treasuries (VGSH)
4.80% International Small Cap Value (DLS)
4.00% Emerging Markets Small Cap (EWX)
3.20% Emerging Markets Value (FNDE)
5.00% 1 Year Fixed Income (BSV)
5.00% 2 Year Global Fixed Income (BNDX)
5.00% 5 Year Global Fixed Income (BND/BNDX)
2.00% International REITs (VNQI)

Index Fund Advisors, Portfolio 90

10.80% US Large Cap Value (VTV)
10.80% US Large Cap (VV)
18.00% US Small Cap Value (VIOV)
18.00% US Small Cap (VIOO)
2.25%    REITs (VNQ)
3.60%    Emerging Markets (VWO)
5.40%    International Large Cap Value (EFV)
5.40%    International Small Cap Blend (VSS)
2.50%    Short Term Treasuries (VGSH)
5.40%    International Small Cap Value (DLS)
4.50%    Emerging Markets Small Cap (EWX)
3.60%    Emerging Markets Value (FNDE)
2.50%    1 Year Fixed Income (BSV)
2.50%    2 Year Global Fixed Income (BNDX)
2.50%    5 Year Global Fixed Income (BND/BNDX)
2.25%    International REITs (VNQI)

Index Fund Advisors, Portfolio 100

This high-performing portfolio is part of the premium portfolios service. Get it here!

Alternatives to Index Fund Advisors (IFA) Portfolios

The three most similar groups of portfolios to the Index Fund Advisors (IFA) Portfolios. The first group of portfolios is David Booth’s portfolios. David Booth is the CEO of Dimensional Advisor Funds, so no surprise why the portfolios are similar. The second group is Dan Solin’s portfolios. Dan Solin used to work at IFA. The third group of portfolios is the FPL Capital Management Portfolios.

The IFA portfolios are very complex. They all have many assets classes

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 provide higher returns in the long run. It is completely FREE.

You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.

Rebalancing lowers your portfolio risk and can increase your returns.

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