From an article over on IndexUniverse titled “Liquid Alternatives: More Than Hedge Funds” by Rob Arnott and John West.
Below is how an investor could replicate their portfolio with ETFs.
The Diversified Asset Portfolio is an equally weighted portfolio (10% each) of:
International stocks – VEU, EFA
U.S. stocks – VTI, SPY
Emerging market bonds – PCY, EMB
TIPS – TIP, IPE
High-yield bonds – HYG, LQD
Long-term U.S. government bonds – TLT, BLV
Unhedged non-U.S. bonds – BWX
U.S. investment-grade bonds – AGG, BND
REAL ASSETS 20%
Commodities – DJP, DBC
REITs – VNQ, IYR