Balanced Allocation
The balanced portfolio consists of a 40:60 split of fixed income to equity exposure. Balanced investors are often seeking the potential for long-term appreciation while minimizing the overall risk of their portfolio. They are willing to invest in the stock markets but typically maintain a large portion of income securities. The sample portfolio allocation can be rebalanced as often as desired back to the fixed weights (quarterly, semi-annually, or annually).
Investors that are seeking a balanced allocation may want to include the following asset classes and potential Claymore ETFs. The income portion of the sample allocation is focused on high quality Government and Corporate bonds. The Claymore 1-5 Yr Laddered Government Bond ETF (CLF), the Claymore 1-5 Yr Laddered Corporate Bond ETF (CBO) and the Claymore S&P/TSX CDN Preferred Share ETF (CPD) are potential Claymore ETFs that could fit in your allocation. The equity allocation is focused on broad market equity for Canadian, US, International and Emerging Markets exposure. Potential Claymore ETFs include the Claymore Canadian Fundamental Index ETF (CRQ), the Claymore US Fundamental Index ETF non hedged (CLU.C), the Claymore International Fundamental Index ETF (CIE) and the Claymore Broad Emerging Markets (CWO). In addition, an allocation to the global real estate asset class may be achieved by including the Claymore Global Real Estate ETF (CGR). The broad market equity exposure in this sample uses a Fundamental Indexing™ strategy, which weights companies by four factors: Total Sales, Total Cash Flow, Total Dividends, and Total Book Equity Value
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