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:
STOCKS 20%
International stocks – VEU, EFA
U.S. stocks – VTI, SPY
BONDS 60%
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
