portfolio basics
Educational articles in this subcategory.
Core Asset Allocation Models for US Investors
**Difficulty:** Intermediate **Published:** 2025-12-28 Asset allocation determines 93.6% of portfolio return variation over time, dominating secur...
Designing a Three-Fund Portfolio
**Difficulty:** Intermediate **Published:** 2025-12-28 The three-fund portfolio delivers global diversification across 21,600+ securities using ex...
Adding Bonds to Reduce Volatility
**Difficulty:** Intermediate **Published:** 2025-12-28 Adding 20% bonds to a 100% stock portfolio reduces volatility from 18.5% to 14.7% (20.5% re...
Role of Cash and Short-Term Instruments
**Difficulty:** Intermediate **Published:** 2025-12-28 Cash serves three legitimate portfolio functions: emergency reserves (3-6 months expenses),...
How to Select US Equity Index Building Blocks
**Difficulty:** Intermediate **Published:** 2025-12-28 Total US stock market index funds deliver 99.5% market coverage across 3,700 stocks using s...
International Exposure Decisions for US Investors
**Difficulty:** Intermediate **Published:** 2025-12-28 International stocks represent 44% of global market capitalization across 8,000 companies i...
Incorporating Real Assets and Alternatives
**Difficulty:** Advanced **Published:** 2025-12-28 Real assets (REITs, commodities, gold) and inflation-protected securities add complexity to por...
Rebalancing Rules: Frequency and Tolerance Bands
**Difficulty:** Intermediate **Published:** 2025-12-28 Annual rebalancing with ±5 percentage point tolerance bands delivers 99% of returns versus ...
Risk Budgeting and Position Limits
**Difficulty:** Advanced **Published:** 2025-12-28 Single stock concentration creates 50-70% higher volatility versus diversified portfolio, with ...
Dollar-Cost Averaging Implementation Guide
**Difficulty:** Intermediate **Published:** 2025-12-28 Lump-sum investing outperformed dollar-cost averaging in 68% of rolling 12-month periods ac...
Tax-Efficient Asset Location Basics
**Difficulty:** Beginner **Published:** 2025-12-28 Optimal asset location adds 0.20% to 0.75% in annual after-tax returns by placing high-tax inve...
Building Income-Focused vs Growth Portfolios
**Difficulty:** Intermediate **Published:** 2025-12-28 Growth portfolios outperformed income portfolios by 1.3% annually from 2000 to 2023, compou...
Stress Testing Portfolios Against Market Scenarios
**Difficulty:** Intermediate **Published:** 2025-12-28 Portfolio stress testing during the first 5 years of retirement predicts 30-year success wi...
Creating IPS (Investment Policy Statement) Templates
**Difficulty:** Intermediate **Published:** 2025-12-28 Individual investors with written Investment Policy Statements achieve **2.4% higher annual...
Evaluating Model Portfolios vs DIY
**Difficulty:** Intermediate **Published:** 2025-12-28 Model portfolios via robo-advisors (0.25% fee) outperformed the average DIY investor by **1...
How to Use Target-Date Funds as Core Holdings
**Difficulty:** Intermediate **Published:** 2025-12-28 Target-date fund users achieved **90% of their retirement savings goals** versus **67% for ...
Factor Tilts: Value, Quality, Momentum Basics
**Difficulty:** Beginner **Published:** 2025-12-28 Small-cap value stocks outperformed large-cap growth by **5.2% annually** from 1927-2015 (Fama ...
Using ETFs for Sector Bets Responsibly
**Difficulty:** Intermediate **Published:** 2025-12-28 Tactical sector bets underperformed balanced portfolios by **-1.8% annually** after fees fr...
Tracking Performance vs. Benchmarks
**Difficulty:** Intermediate **Published:** 2025-12-28 Portfolios without defined benchmarks underperformed appropriate benchmarks by **1.2% annua...
Glossary: Portfolio Construction Terms
**Difficulty:** Beginner **Published:** 2025-12-28 This glossary defines 28 essential terms for building and managing diversified portfolios. Each...
Core Asset Allocation Models for US Investors
Core Asset Allocation Models for US Investors Difficulty: Intermediate Publication Date: 2025-12-05 ## Definition and Key Concepts Core asset allocat...