IFA Index Portfolio 60: Green

Slightly Aggressive: Suitable for investors who have at least 10 years before needing approximately 20% of their investments and are willing to accept a moderate degree of volatility in order to achieve moderate portfolio growth.

Index DataRolling PeriodsTop Ten HoldingsReturns MatrixFact SheetHi/Lo ComparisonRisk/Return Calculator
Below are methods for implementing this level of risk. Due to differences, returns will vary from the IFA Index Portfolio (see here).
Taxable
Accts		IRA
Accts		Taxable &
IRA Accts		401k/403b
Plans		Socially
Responsible		Environmentally
Conscious		Core
Allocation		Diversified
Index Managers

Core Portfolio Implementation
General Asset
Class Allocation		Portfolio Account Index
Funds Allocation (Fund Symbols)		Number
of
Holdings**		Wtd Avg Mkt Cap (millions)**Wtd Avg Book-to
-Market**
42%US Equities29.40%DFA US Core Equity 2 Portfolio (DFQTX)3,256$45,9720.71
8.40%DFA US Large Cap Value (DFLVX)228$51,6581.06
4.20%DFA US Targeted Value (DFFVX)1,528$1,8591.02
7%Real Estate7.00%DFA Global Real Estate Securities (DFGEX)322$9,7680.74
14%International7.00%DFA International Core Portfolio (DFIEX)5,344$28,6750.96
7.00%DFA International Vector (DFVQX)3,997$19,0351.07
7%Emerging Markets7.00%DFA Emerging Markets Core (DFCEX)3,418$30,0200.75
30%Fixed Income15.00%DFA One-Year Fixed Income (DFIHX)nanana
15.00%DFA Five-Year Global Fixed Income (DFGBX)nanana
**As of December 31, 2011

 

 

    Explanation of IFA's Core Portfolios

In this video, members of the Dimensional Fund Advisors team explain the strategy of core portfolios.

The essential purpose of IFA's core portfolios is to create the same risk exposures as IFA's standard portfolios but with fewer funds. At the heart of the equity portion of the core portfolios are three funds:

DFA US Core Equity 2 Portfolio (DFQTX)
DFA International Core Portfolio (DFIEX)
DFA Emerging Markets Core Portfolio (DFCEX)

Each of these funds covers a specific market in total and is engineered to capture a small cap and value risk premium while minimizing trading costs within the fund. In order to increase the small-cap and value tilt to match the standard IFA portfolios, IFA includes three additional equity funds in these portfolios:

DFA US Large Cap Value (DFLVX)
DFA US Targeted Value (DFFVX)
DFA International Vector (DFVQX)

The real estate component of the core portfolios is the same as the standard portfolios, the DFA Global Real Estate Securities Fund (DFGEX). While the standard IFA portfolios include four fixed income funds, the core portfolios include only two, DFA One-Year Fixed Income (DFIHX) and DFA Five-Year Global Fixed Income (DFGBX). This is done to help reduce trading costs while maintaining a diversified fixed income exposure centered on high quality and short-duration bonds.

The primary advantage of the core portfolios over the standard portfolios is reduced trading costs. There are six fewer trades required to establish a core portfolio, which can translate into a savings of up to $300. The mutual fund fees are essentially the same for both the core and standard portfolios.

One disadvantage of the core portfolios is reduced transparency. Specifically, for the standard portfolios it is easy to determine the contributions of individual asset classes to overall performance. For the core portfolios, the asset classes are bundled together in the core funds. Another disadvantage is the potential reduced opportunity for tax loss harvesting, based on the fact that an individual asset class fund may hit the threshold for tax loss harvesting before the core fund does.

In terms of performance, the core portfolios have tracked the standard portfolios quite closely.

Annual Returns
  Core P50 Standard P50
2006 14.40% 15.08%
2007 2.89% 2.91%
2008 -23.23% -23.03%
YTD 11/30/09 20.36% 20.43%

   

 

IFA Index Portfolio 60: Green

Slightly Aggressive: Suitable for investors who have at least 10 years before needing approximately 20% of their investments and are willing to accept a moderate degree of volatility in order to achieve moderate portfolio growth.

Index DataRolling PeriodsTop Ten HoldingsReturns MatrixFact SheetHi/Lo ComparisonRisk/Return Calculator
Below are methods for implementing this level of risk. Due to differences, returns will vary from the IFA Index Portfolio (see here).
Taxable
Accts		IRA
Accts		Taxable &
IRA Accts		401k/403b
Plans		Socially
Responsible		Environmentally
Conscious		Core
Allocation		Diversified
Index Managers
Call or Email
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