Here Are The 20 Best Income Portfolios Built with ETFs for 2023
If you're looking for income then you should look at this list of the 20 best income portfolios.
What are the Wealthfront’s portfolios?
Robo Advisor Wealthfront portfolioscan be built with 7 ETFs. They are exposed to between 40% and 100% equities.
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What is the historical return of the Wealthfront portfolios?
Below you can see the historical return of Wealthfront’s portfolios.
Portfolio data was last updated on 11th of August 2023, 08:35 ET
| Name | Year to date | Return in 2022 | 10 year return | CAGR since 1989 (%) | Draw Down | Expense ratio | Yield |
|---|---|---|---|---|---|---|---|
| Robo Advisor Wealthfront 100 | 6.96 | -18.09 | 5.9 | 8.99 | -38.97 | 0.08% | 3.08 |
| Robo Advisor Wealthfront 80 | 6.95 | -16.31 | 7.11 | 8.83 | -35.39 | 0.07% | 2.82 |
| Robo Advisor Wealthfront 60 | 5.83 | -15.96 | 6.5 | 8.48 | -30.3 | 0.08% | 2.83 |
| Robo Advisor Wealthfront 40 | 4.94 | -15.53 | 6.0 | 8.13 | -25.05 | 0.08% | 2.8 |
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 does Wealthfront’s portfolios compare to the best portfolios?
Below you can see the returns of the best portfolios that we have benchmarked.
| Name | See Portfolio | Year to date | Return in 2022 | 10 year return | CAGR since 1989 (%) | Draw Down |
|---|---|---|---|---|---|---|
| Ben Stein Retirement | Coming soon! | 4.05 | -18.03 | 9.46 | 10.8 | -35.42 |
| Paul Merriman 4-Fund-Portfolio | Coming soon! | 9.22 | -11.98 | 11.25 | 10.38 | -35.26 |
| S&P 500 | Coming soon! | 17.09 | -18.19 | 12.52 | 10.28 | -37.63 |
| Paul Merriman Target Date Portfolio (25 year old) | Coming soon! | 6.63 | -13.08 | 8.28 | 10.2 | -36.46 |
| Scott Adams Dilbert Portfolio | Coming soon! | 10.87 | -18.75 | 7.0 | 10.19 | -44.88 |
| JL Collins, Simple Path To Wealth, Wealth Building Portfolio | Coming soon! | 16.6 | -19.51 | 12.08 | 10.19 | -37.0 |
| American Institute of Individual Investors (AAII) Portfolio | Coming soon! | 3.74 | -13.91 | 9.7 | 10.16 | -40.85 |
| Paul Merriman Target Date Portfolio (35 year old) | Coming soon! | 6.57 | -13.22 | 8.31 | 10.08 | -36.35 |
| Assetbuilder.com Portfolio 14 | Coming soon! | 6.95 | -16.94 | 7.59 | 9.99 | -37.91 |
| Balanced Portfolio 90/10 | Coming soon! | 14.83 | -18.87 | 11.03 | 9.84 | -32.78 |
What is Wealthfront?
The robo advisor firm came late to the robo advisor party but has enjoyed an immense amount of success.
One of the giants of the investment world, Burton Malkiel, author of A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing, is the Chief Investment Officer at Wealthfront.
Charles Ellis, another investing giant, and author of Winning the Loser’s Game, Seventh Edition: Timeless Strategies for Successful Investing is on the advisory board.
As of 2019 Wealthfront has 20 billion dollars under management. Their biggest competitor in the robo advisor space is Betterment. You can view our breakdown of the Betterment portfolios in the article Robo Advisor Betterment Portfolios Are Robots Better?
To see a comparison of robo advisor portfolios see our article Robo Advisor Performance. This is the article where we compare the performance of various robo advisors.
Description of Wealthfront portfolios
There seems to be a trend in the robo advisor portfolios. They are all highly diversified. They use asset classes not usually seen as much in other portfolios.
The Wealthfront portfolios include the use of emerging market bonds. They also use real estate (REITs), as a distinct asset class. Betterment, on the other hand, does not allocate to REITs specifically.
Wealthfront also makes heavy use of corporate bonds – a favorite of Burton Malkiel. See Burton Malkiel Portfolio: No Random Returns Here.
This creates a setup for potential outperformance in that they can rebalance their way to higher returns.
What is the asset allocation of Wealthfront’s portfolios?
Below you can see how you build Wealthfront’s portfolios with ETFs.
Robo advisor Wealthfront 100
- 20.00% US Total Stock Market (VTI)
- 5.00% US Large Cap Value (VTV)
- 16.00% REITs (VNQ)
- 18.00% International Developed Blend (VEA)
- 31.00% Emerging Markets (VWO)
- 5.00% Corporate Bonds (LQD)
- 5.00% Emerging Market Bonds (EMB / VWOB)
Robo advisor Wealthfront 80
- 22.00% US Total Stock Market (VTI)
- 15.00% US Large Cap Value (VTV)
- 15.00% REITs (VNQ)
- 19.00% International Developed Blend (VEA)
- 16.00% Emerging Markets (VWO)
- 6.00% Corporate Bonds (LQD)
- 7.00% Emerging Market Bonds (EMB / VWOB)
Robo advisor Wealthfront 60
- 19.00% US Total Stock Market (VTI)
- 15.00% US Large Cap Value (VTV)
- 11.00% REITs (VNQ)
- 16.00% International Developed Blend (VEA)
- 12.00% Emerging Markets (VWO)
- 19.00% Corporate Bonds (LQD)
- 8.00% Emerging Market Bonds (EMB / VWOB)
Robo advisor Wealthfront 40
- 18.00% US Total Stock Market (VTI)
- 15.00% US Large Cap Value (VTV)
- 6.00% REITs (VNQ)
- 12.00% International Developed Blend (VEA)
- 8.00% Emerging Markets (VWO)
- 31.00% Corporate Bonds (LQD)
- 10.00% Emerging Market Bonds (EMB / VWOB)
Make sure you select the right ETFs!
There are a lot of ETFs! It is pretty boring to sift through hundreds and hundreds of ETFs just to find the right one, but it is worth it!
Finding the right and BEST ETF could earn you a lot more money than number two on the list.
We have done the work for you – all for FREE.
We have carefully selected ETFs 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 (they need to be of the UCITS kind!).
We have listed 47 of the best ETFs in our article What Are The Best ETFs For European Investors? (Here Is 47).
As of 2021 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.
Where can I Learn more about Wealthfront portfolios?
Wealthfront has a very good learning center with informative videos. Many of them starring Burton Malkiel!
Suggestions for your next steps
If you have already committed to a portfolio then maybe you need help maintaining the portfolio. In this case 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.
