Rob Arnotts Portfolio is exposed to 30% stocks, 60% bonds, and 10% commodities. It can be built with just 8 ETFs. Rob Arnotts Portfolio is a low-risk portfolio.
For the past 10 years Rob Arnotts Portfolio returned 5.42 with a standard deviation of 7.15. The dividend yield is 1.8. The 30-year return is 7.39%. Year to date Rob Arnotts Portfolio has returned 0.09%. Last year it returned 7.12%.
What is the return of Rob Arnott’s portfolio?
|Name||Asset class count||Year to date||Return in 2020||10 year return||CAGR since 1989 (%)||Risk level||Expense ratio|
|Rob Arnott Portfolio||8||0.09||7.12||5.42||7.39||1||0.17%|
|Rob Arnott ETF.com model portfolio||7||0.07||6.11||5.51||7.61||1||0.21%|
How do you build Rob Arnott’s portfolio with ETFs?
- 10% Large Cap Blend (VOO)
- 10% Total International Stocks (VEA)
- 10% REITs (VNQ)
- 10% Commodities (DBC)
- 10% Long Term Treasuries (TLT)
- 20% Intermediate Corporate Bonds (LQD)
- 10% TIPS (VTIP)
- 20% International Bonds (BNDX)
Who is Rob Arnott?Research Affiliates is a giant in wealth management with $193 billion in assets under management. Research Affiliates license their strategies. An example of this is their RAFI index used by ETF provider Invesco for many of their smart-beta ETFs. PRF – Invesco FTSE RAFI US 1000 ETF should be well known for smart-beta investors. Rob Arnott is their founder. He is the archetypical investment specialist with over 100 academic articles to his name. He is also the author of the book The Fundamental Index: A Better Way to Invest. In that, he lays out the method for constructing the above mentioned RAFI index. It is co-written with Jason Hus and John West who are both smart-beta masterminds.
Description of the Rob Arnott portfolioThe Rob Arnott portfolio comes from an article from the now-defunct indexuniverse.com, where Robb Arnott analyzed hedge-fund performance against a model portfolio. The article is now available at etf.com. Meb Faber included the model portfolio in his fantastic book Global Asset Allocation: A Survey of the World’s Top Asset Allocation Strategies. The portfolio that Meb Faber presented in his book is slightly different from the one presented at indexuniverse.com. Originally Robb Arnott proposed an equal weight of the following asset classes:
- Emerging market bonds
- High-yield bonds
- Long-term U.S. government bonds
- Unhedged non-U.S. bonds
- International stocks
- U.S. stocks
- investment-grade bonds