TD Ameritrade Selective Portfolios, Dreadfully Dull Determines Your Destiny

TD Ameritrade Selective Portfolios

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There are five TD Ameritrade Selective portfolios. They are allocated 15% to 85% stocks and 15% to 85% bonds. They can be built with just 4 ETFs. They range from low-risk to high-risk portfolios.

What are the TD Ameritrade Selective Portfolios?

There are TD Ameritrade Selective portfolios. The range from low risk to high risk. They are built with 4 ETFs.

For the past 10 years, the TD Ameritrade Core Portfolio Growth has returned 9.19% with a standard deviation of 13.47%. The dividend yield is 2.46. The 30-year return is 9.34%. Year to date the TD Ameritrade Core Portfolio Growth Portfolio has returned -8.15.

You will find the returns for the other four TD Ameritrade portfolios below.

Performance of TD Ameritrade Selective portfolios

NameAsset class countYear to dateReturn in 201910 year returnCAGR since 1989 (%)Risk levelExpense ratio
S&P 50012.5131.4613.52%10.5430.04%
TD Ameritrade Core Portfolio Conservative54.2713.275.53%6.9310.05%
TD Ameritrade Core Portfolio Moderate52.9416.046.52%7.3910.05%
TD Ameritrade Core Portfolio Moderate Growth52.0417.897.17%7.6510.05%
TD Ameritrade Core Portfolio Growth50.2421.588.43%8.0820.05%
TD Ameritrade Core Portfolio Aggressive5-1.0324.439.42%8.3630.05%

How do you build the TD Ameritrade with ETFs?

Here is how you build the TD Ameritrade Core Portfolio Growth portfolio.

  • 43.00% US Total Stock Market (VTI)
  • 27.00% International All-World ex-US (VEU)
  • 26.00% Total US Bond Market (BND)
  • 1.00% Cash (money market fund) (BIL)
  • 3.00% Non-US Bonds (BNDX)

Find out how to build all of the portfolios below.

Who is TD Ameritrade?

TD Ameritrade is a giant in the brokerage world. They offer an electronic trading platform for the trade of financial assets, including common stocks, preferred stocks, futures contracts, exchange-traded funds, options, cryptocurrency, mutual funds, and fixed-income investments.

In 2019 it was snatched up by Charles Schwab in a $26 billion buyout deal.

In 2019 TD Ameritrade had just shy of $1.3 trillion in client assets.

“At the end of World War II, the average holding period for a stock was four years. By 2000, it was eight months. By 2008, it was two months. And by 2011 it was twenty-two seconds.”

– Scott Patterson from the book Dark Pools

TD Ameritrade has had an outsized influence on electronic trading and bringing costs down for stock trading. The book by Scott Patterson Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market describes how electronic trading rose to dominate modern stocks trading. TD Ameritrade, then called Ameritrade, plays several key roles in the electronic trading dominance drama, for example, in their purchase of Datek Securities. I highly recommend the book.

“What an expensive and needless mess. You could probably find a cure for cancer in a year if you just reassigned all the smart people who are now working on this artificially created and otherwise useless problem.”

– Scott Patterson from the book Dark Pools

Dark Pools, The Rise of the Machine Traders and the Rigging of the U.S. Stock Market

TD Ameritrade has always been at the forefront of electronic trading. They were some of the first to promote electronic trading for retail investors.

They launched their trading program for Windows in 1996 called Accutrade.

Accutrade-from-ameritrade
Ameritrade launched its Accutrade trading software program in 1996. This is an ad for the program.

Description of TD Ameritrade Selective portfolios

The TD Ameritrade Select portfolios have got a problem of differentiating themselves from TD Ameritrade’s robo-portfolios. TD Ameritrade’s robo-portfolios are called Essential portfolios. TD Ameritrade states that when you select a Selective portfolio you get access to a human advisor to help you.

Selective Portfolios is designed to meet your unique goals with a combination of advanced technology and professional insights. From day one, you have access to dedicated Selective Portfolios Specialists, ready to help you along the way.

– TD Ameritrade

The selective portfolios are many times more expensive than their essential robo advisor portfolio counterparts.

There is five TD Ameritrade Selective portfolio with varying degree of risk. They have the same composition as Vanguard LifeStrategy portfolios. You can see the Vanguard LifeStrategy portfolio in our article Vanguard LifeStrategy Portfolios, Let’s Put Investing In A Box. They are dreadfully dull—just the way we like them.

Asset Allocation for TD Ameritrade Selective portfolios

TD Ameritrade Core Portfolio Aggressive

  • 53.00% US Total Stock Market (VTI)
  • 32.00% International All-World ex-US (VEU)
  • 12.00% Total US Bond Market (BND)
  • 1.00% Cash (money market fund) (BIL)
  • 2.00% Non-US Bonds (BNDX)

TD Ameritrade Core Portfolio Growth

  • 43.00% US Total Stock Market (VTI)
  • 27.00% International All-World ex-US (VEU)
  • 26.00% Total US Bond Market (BND)
  • 1.00% Cash (money market fund) (BIL)
  • 3.00% Non-US Bonds (BNDX)

TD Ameritrade Core Portfolio Moderate Growth

  • 31.00% US Total Stock Market (VTI)
  • 19.00% International All-World ex-US (VEU)
  • 44.00% Total US Bond Market (BND)
  • 1.00% Cash (money market fund) (BIL)
  • 5.00% Non-US Bonds (BNDX)

TD Ameritrade Core Portfolio Moderate

  • 25.00% US Total Stock Market (VTI)
  • 15.00% International All-World ex-US (VEU)
  • 53.00% Total US Bond Market (BND)
  • 1.00% Cash (money market fund) (BIL)
  • 6.00% Non-US Bonds (BNDX)

TD Ameritrade Core Portfolio Conservative

  • 16.00% US Total Stock Market (VTI)
  • 9.00% International All-World ex-US (VEU)
  • 66.00% Total US Bond Market (BND)
  • 1.00% Cash (money market fund) (BIL)
  • 8.00% Non-US Bonds (BNDX)

Check the best mutual funds and ETFs here.

Resources for TD Ameritrade Selective portfolios

Get Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market to learn more about TD Ameritrade’s rise to dominance.

TD Ameritrade has a very informative youtube channel targeting Millenials. There is a lot of useful info on there, but be careful not to get encouraged to do any sort of individual share training or god-forbid forex trading!

Related questions

Does TD Ameritrade have managed accounts?
TD Ameritrade offers a managed account in which you can choose the selective portfolios. It costs a fee and it more expensive if you build the portfolios by yourself.

What are some portfolios that are similar to TD Ameritrade portfolios?
The most similar portfolios are Rick Ferri’s Core Four portfolios.

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