Build the Market Beating Index Fund Advisor Portfolios With ETFs

What are the Index Fund Advisor Portfolios?

Index Fund Advisors (IFA) portfolios can be built with 9-15 ETFs. They are exposed to between 0-90% bonds and 10-100% equities.

Article contents

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.

Portfolio data was last updated on 11th of November 2022, 11:40 ET

NameYear to dateReturn in 202110 year returnCAGR since 1989 (%)STDEVDraw DownExpense ratioYield
Index Fund Advisors, Portfolio 100-16.6623.3812.4310.7717.23-39.62%0.18%2.38
Index Fund Advisors, Portfolio 80-15.3718.4310.359.6213.76-30.83%0.15%2.24
Index Fund Advisors, Portfolio 60-14.0813.498.228.3310.33-22.03%0.13%2.1
Index Fund Advisors, Portfolio 50-13.4411.027.147.648.64-17.64%0.12%2.03
Index Fund Advisors, Portfolio 90-16.2319.5611.2410.1315.32-34.47%0.17%2.32
Index Fund Advisors, Portfolio 70-15.0414.899.28.9411.92-25.91%0.14%2.18
Index Fund Advisors, Portfolio 40-13.247.886.056.926.93-13.07%0.10%1.98
Index Fund Advisors, Portfolio 30-12.645.544.986.185.36-8.79%0.09%1.92
Index Fund Advisors, Portfolio 20-12.043.23.895.423.93-4.51%0.08%1.85
Index Fund Advisors, Portfolio 10-11.440.862.794.632.86-0.23%0.07%1.78
Performance for Index Fund Advisors portfolios

Here is what the table is showing you

Year to date: This shows what the portfolio has returned this year starting from the first trading day of the year.

10 Year return: This shows the compounded annualized growth rate over a ten-year period. The current year is excluded from calculations.

CAGR since 1989: This shows the compounded annualized growth rate since 1989. The current year is excluded from calculations.

Expense ratio: This shows the cost of holding the portfolio if you were to construct the portfolio using the proposed ETFs.

Yield: This is the expected dividend yield of the portfolio.

Please note that past performance is not a guarantee of future returns.

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.

NameSee PortfolioYear to dateReturn in 202110 year returnCAGR since 1989 (%)Draw Down
Premium PortfolioPremium-20.9732.1413.211.81-35.43%
Premium PortfolioPremium-18.728.7816.5211.28-37.63%
Premium PortfolioPremium-19.6425.6716.2911.25-37.00%
Premium PortfolioPremium-23.9913.4911.0311.21-44.87%
Premium PortfolioPremium-12.028.1714.4711.14-35.26%
Premium PortfolioPremium-14.924.7511.8510.99-36.46%
Premium PortfolioPremium-14.7929.0213.1510.99-40.85%
Premium PortfolioPremium-20.620.711.4510.93-37.91%
Premium PortfolioPremium-15.1224.5111.8710.88-36.35%
Premium PortfolioPremium-19.3822.9214.9910.85-32.77%
The 10 Best Performing Portfolios That We Have Benchmarked

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 has written a really good book. It is called 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.

Index Funds: The 12-Step Recovery Program for Active Investors

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 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.

 

What is the asset allocation for Index Fund Advisors (IFA) portfolios?

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 Portfolioeinsteins premium portfolios. Get it here!

 

What are som good 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](https://us.dimensional. com/), 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

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If you want access to our high-performing portfolios then you want to take a look at the premium portfolios.

This is a paid product that gives you the 20 best-performing portfolios since 1989. The portfolios represent a great opportunity low-cost for you to get more money from your investment portfolios. We think it’s a no-brainer. The 20 portfolios are the best among the literally hundreds of other portfolios we have benchmarked since we started.

You stand to gain thousands more dollars EACH YEAR for the price of a few months of Netflix.

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.

What is the best index fund to invest in 2022?

The best index fund to invest in 2022 is the Vanguard Total Stock Market ETF (VTI).

What is the 10 year average return on the S&P 500?

The average return of the S&P for the past 10 years has been 16.52.

Can you lose all your money in an index fund?

No, that is extremely unlikely. If you hold a total stock market ETF then all the companies within that ETF need to go bankrupt for you to lose all your money. Vanguard’s Total Stock Market ETF (VTI) holds over 1000 different stocks.