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asset-allocation

Low-cost index funds UK

A choice of cheap index trackers to help passive investors craft their portfolios

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Every asset in a strategic asset allocation has an important role to play. Here are the main asset classes that will nourish and protect your portfolio.

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With our passive portfolio only inching ahead, so we look back in mock anger at what might have been…

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Why take 45 index trackers into the investing shower when one will do. (Ah, but which one?)

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Blind Date for Investors

How do you find the investment strategy that you can stick with for life? Not like this I hope.

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Is it time to ditch index-linked bond funds? [Members]

Index-linked bond funds failed to defend against inflation in 2022 and 2023. So is there any point keeping them and what are the alternatives?

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Our portfolio continues to make its comeback, like an aging rockstar who manages to sell-out the John Smith’s stadium in Huddersfield…

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What is trend following all about, and what can such a fund do for a portfolio?

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Has the wind of fortune changed decisively for global investors?

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Ahoy closet stock pickers! Here’s how to choose an S&P 500 tracker

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Our passive portfolio drifts along in a sideways market. Time to take up tiddlywinks.

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Updated model portfolios to help you nut out your asset allocation strategy

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Which commodities ETF?

What’s the best commodities ETF to invest in? We explain our pick

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The rise in rates since 2022 has smashed the returns for all sorts of assets. That might make them good buys today…

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This is what drifting sideways looks like

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Are commodities the ideal alternative asset class that should be in any well diversified portfolio? Here’s the case for owning commodities

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Is ditching UK gilts for US Treasury bonds as smart a move as it looks?

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A cheap portfolio of cheap assets

While nothing is always true in investing, it’s generally the case that buying cheap assets gives you a better prospect of higher future returns. With bonds the relationship is clear. Lower bond prices mean higher yields – and your starting yield with a bond is an excellent indicator of the return you’ll ultimately receive. With [...]

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This is what a historic bond meltdown looks like

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Inflation fears roundhouse every holding in the Slow & Steady portfolio

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Vanguard LifeStrategy funds review

An instant diversified portfolio that requires less maintenance than an Easter Island statue.

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Once more the contrast between my daily diet of media-amplified fear and the damage done to our Slow & Steady passive portfolio surprises me. The portfolio is down just 3.5% since its peak last quarter. Essentially, we’re back where we were six months ago.  That’s despite the arrow-headed threats of stagflation, economic crisis, and a [...]

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Mr Market cuts us with his eyes this quarter. Ouch.

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As Bitcoin gets bigger and more widely accepted, should it become part of your asset allocation?

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Our portfolio inched ahead again in Q3…

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Mobile trading apps are on the rise. Here’s how to run a good passive investing strategy on Freetrade using ETFs.

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The market recovery is looking suspiciously V shaped. Can it possibly be true. Or will it soon turn into a W?

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The Global Financial Crisis was awful. Which means it must have some amazing lessons to teach us. Perhaps about diversification!

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Our passive portfolio encounters its first bear market. And it hurts.

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The Accumulator confesses to active investing and catastrophically fails to enjoy a year of spectacular investing returns.

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A selection of rules of thumb that can help you devise your asset allocation strategy.

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The market spins from month to month but our Slow & Steady passive portfolio has still managed to end the quarter a few percentage points up.

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UK market history suggests you need gold and cash in your portfolio to protect against the worst.

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Our Slow and Steady passive portfolio chalks up another good three months…

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An active fund plot unfolds; what heresy is this?

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Markets are down. Our emergency bond parachute is open. How is our passive portfolio faring against the financial flak?

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Every journey begins with a single step. And when it comes to asset allocation that first step is working out your investment goals.

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Our portfolio slows to a crawl. US valuations predict barren years ahead. Is it time to change course?

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Our passive portfolio is back off the canvas and shrugging off every blow the forces of pessimism can throw at it.

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Our Slow and Steady model portfolio takes a step back in the first quarter of 2018. Hold the smelling salts…

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Mr Market has been as easy on us as a camomile cleansing butter this year. Enjoy a rejuvenating rubdown with high returns that soothe like dopamine kisses.

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The Permanent Portfolio

Nobody cares about the gold-laden Permanent Portfolio these days. Could that mean it’s time to look at it again?

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Our passive portfolio grinds against the unyielding coalface of global capitalism.

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The Slow & Steady portfolio is going down! Time to smash glass and activate our emergency plans? Watch us inaction.

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Few people like to think about getting older, but you should try to do so when you’re rebalancing your portfolio.

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Lars Kroijer explains how to match your bond allocation to your time horizon, and considers what kind of returns you might enjoy. (Or not enjoy, these days…)

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Mr Market invites us round for tea and cake and gives us a foot rub. Are things going too well?

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Why are we told to own very low risk assets in our portfolio, and what kinds of investments fulfill this role?

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The simplest way to rebalance your portfolio

Calendar rebalancing is the simplest way to rebalance and ensures that your portfolio doesn’t get bloated with risk. But how frequently should you do it?

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Has the world become too risky for passive investors with Donald Trump as president? Lars Kroijer says it’s more complicated than that…

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The Slow & Steady passive portfolio leapt up by 25% in the last year. So if you’re a passive investor who stuck to your mechanical guns then you’re probably feeling a lot better off now than back in January 2016. At that point our psyches were screeching like fingernails down a blackboard as the major world equity markets slid into [...]

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Our model portfolio soars once again and we scratch around looking for the cloud in the silver lining.

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Rebalancing with new contributions is the best way for investors with small portfolios to hit their target asset-allocation without excessive cost.

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Help, the market has gone up!

Worried that a fast-rising market might cost you in the future? Here are some simple steps you can take to lower your risks.

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Our doughty passive portfolio has been an island of calm amid the uncertainty.

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Threshold rebalancing offers a number of easy-to-follow strategies that enable you to fine tune your portfolio’s exposure to risk.

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The world’s decided not to go into meltdown after all. Our model passive portfolio jumps for joy.

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Don’t know what your risk tolerance is even though you’ve been told it’s important to have one? These tips will help you work it out.

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A quick guide to asset classes

The pros and cons of the main asset classes neatly arrayed for your investing convenience.

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Our model passive portfolio reaches its 5th birthday. Time for cake, presents, party hats and stats.

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Our model passive portfolio stares straight ahead as Commandant Market pulls its nostril hairs with sadistic glee.

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Investment clocks and asset allocation

Most people are no better at understanding the business cycle than they are at riding a unicycle. But this might help, if you’re keen.

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As you take on more risk in investing, you’d typically expect to earn a higher return.

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Our model passive portfolio gets roughed up by Mr Market for the first time in over three years.

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Asset allocation in pyramid form

Confused about asset allocation? Try thinking of asset classes like the building blocks of a food pyramid.

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Not sure what asset allocation is right for you? Here’s a simple-to-use free tool that can help you decide.

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Our model passive portfolio is enjoying a day in the sun. All is well with the world. Surely disaster awaits?

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We should own shares in all the market’s stocks, weighted according to their fraction of the overall value of the market.

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The tech sector is great (apart from when it blows up of course) and UK focused index investors are missing out.

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How to find Exchange Traded Funds

Find the best, low-cost ETFs in a jiffy by following these fund-finding tips.

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Our model passive portfolio gets a diversification makeover for 2015.

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Our passive portfolio presses on deeper into the financial forest, ignoring the branches of overvaluation that seem to thicken around it.

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The market gently wafts our passive portfolio up, like an eagle on a thermal. The only thing to worry about is whether to cut our costs again.

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Japan down! Europe up! Meanwhile our model passive portfolio of index funds gently bobs about.

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When you’re young you can risk asking that person out, going around the world traveling, and holding lots of shares. But things change as you age.

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You can only plan for your financial future if you can estimate your portfolio’s expected return. Here’s how to do it.

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What we can learn from the passive portfolio that Warren Buffet will bequeath his wife.

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Everything you need to know about building your own asset allocation from scratch.

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Find the asset allocation to suit your temperament and stage of life with our quick guide to the perfect portfolio.

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Our model passive portfolio forces us to take one of the toughest decisions in investing: Rebalancing.

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Just when you thought you almost knew what you were doing with pensions, new research directly contradicts the old ‘your age in bonds’ rule. Pah!

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9 lazy portfolios for UK investors

Nine classic passive investing portfolios, conveniently populated with low price trackers for UK investors.

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Because I practice the art of portfolio insouciance, I missed the exact moment our Slow and Steady demo portfolio hit its peak in May.

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The market’s on fire and we’re dancing like chimps on heat around our model passive portfolio.

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I know they’re boring and the future returns look lousy, but if you’re not going to hold any bonds make sure you know what you’re missing.

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Our model passive portfolio ends the year in triumph but we must still sell most of the funds.

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A Monte Carlo simulator can help you work out if your retirement plan is on track

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The Monevator passive portfolio blooms while everyone forgets about Europe for a while.

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How to use a pension calculator as a quick and dirty way of identifying the holes in your retirement plan.

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This week we’re rustling up a retirement plan and asset allocation using a few simple principles and a retirement calculator.

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Our model passive portfolio takes its chances once again against Mr Market.

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After a storming year, gilt funds must surely fall as interest rates rise. Should passive investors adjust their asset allocation to avoid losses?

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HSBC’s World Index Portfolio fund of funds makes life easy for passive investors, but is saddled with some flaws.

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Our model passive portfolio continues its journey tossed on fortune’s fickle waves. This quarter we’re up as the European crisis abates.

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Monevator’s passive investing model portfolio is one-year old. See how our picks have fared in a tumultuous year.

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A quick ‘n’ easy technique that lifestyles Vanguard’s LifeStrategy funds so you are not exposed to excess risk on the glide path to retirement.

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Our model passive portfolio gets caught up in the global equities blood-letting – there’s no hiding place.

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Our model passive portfolio is tossed around like the plaything of the financial gods. And survives.

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The UK’s crying out for a small cap index tracker. The RBS HGSC Tracker has answered the call, but there are still plenty of reasons not to be cheerful.

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Never say never again

Asset classes, sectors, and styles all come in and out of both fashion and genuine prosperity, depending on the underlying cycles. So never say never again.

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The rebalancing strategy for the Slow and Steady passive portfolio uses new contributions to regularly rebalance – and for no-cost.

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The first results are in for The Slow and Steady portfolio: a working example of a passive investing strategy.

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A model passive portfolio that can help investors to formulate their own index investing strategies.

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How to find index funds

Search for index funds quickly and avoid misleading investment information using these fund-finding tips.

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Assuming you’re not investing for the Government’s benefit, you need to keep an eye on tax when rebalancing your portfolio.

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Bad news for the nervous. Assets have become more closely correlated, making diversification harder.

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The endowment funds of Ivy League universities like Yale and Harvard have historically achieved excellent returns, with less volatility than an index tracker fund.

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I have previously discussed why rebalancing your portfolio is a good idea. In short, by reducing or adding to your holdings in different asset classes, you can smooth your returns and keep risk within a level you can tolerate. How do you actually do it? Well, rebalancing is definitely an art more than a science. [...]

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Very few private investors give much thought to asset allocation, even though it’s far more important than picking stocks or funds in determining your investment returns. Even worse, those who do set up a nicely diversified portfolio often forget all about their ideal asset mix once they’ve made their initial decisions! This is foolish, and [...]

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An asset is an item of economic value that can be converted into cash. Assets likely to be held by private investors include: cash in bank deposits, securities (such as shares issued by private companies, and government or corporate bonds), property, insurance policies, foreign currencies, cars, art and antiques. Company assets include plants and machinery, [...]

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So you’ve done your four financial crisis checks: Your savings are safe They’re earning more interest You’ve got a plan to pay off any debt Your mortgage is sorted for the foreseeable future. Time to turn over and fall back to sleep? Possibly. I’m serious! It’s often too late to Do Something once a financial [...]

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Thanks to the recent stock market volatility, investors are increasingly turning to gold, which is traditionally a safe haven in troubled times. This article introduces Bullion Vault, a company that enables you to buy and securely store small amounts of the highest-grade gold, which the company claims offers unique advantages for small investors buying gold. [...]

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By buying commodities you can diversify your portfolio over the long-term so it’s less dependent on the returns from shares. You might also hope to trade commodities, if you think you can buy when they’re priced low and sell when they’re high. (Far easier said then done, and plenty of boys in braces will hire you if you manage it regularly).

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Diversifying your portfolio among different asset classes is a No Brainer.

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2008 could well be the year when we investors are reminded about the benefits of asset allocation. This rather academic sounding discipline is generally forgotten in times of roaring stock markets, but when the weather gets rougher, people are glad they’ve packed umbrellas as well as beach towels. I plan to learn a lot more [...]

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