CNBC’s Model ETF Retirement Portfolio for the 30-Year-Old Investor

ETF Trends

In a collaboration with exchange traded fund experts, CNBC has rolled out an all-ETF diversified portfolio for the investor looking to save toward retirement.

“We wanted investors to have some exposure to most asset classes, that would be stocks, bonds, cash, commodities and even real estate, depending upon your age,” Kim Arther, founding partner of Main Management LLC, said on CNBC. “And you can do all of this with ETFs that are liquid, transparent and diversified.”

I am proud to be part of this advisory board put together by CNBC. [CNBC Rolls Out Model ETF Retirement Portfolios]

On Wednesday, Arthur described a suitable portfolio for a 30-year-old investor that leans toward stocks.

Younger investors will want more exposure to stocks since the asset “grows and ages along with you,” CNBC reporter Bob Pisani explained in the interview.

Specifically, the ETF portfolio for an individual who is 30 years old, with more than 30 years until retirement, includes core stock and bond holdings, along with opportunity picks that could pop up.

Equity

  • SPDR S&P 500 (SPY) 17.5%
  • Schwab U.S. Dividend Equity (SCHD) 7.5%
  • Vanguard Mid Cap (VO) 5%
  • First Trust Health Care AlphaDEX (FXH) 5%
  • Vanguard FTSE All-World ex-US (VEU) 17.5%
  • WisdomTree Emerging Markets Equity Income (DEM) 5%
  • EGShares Emerging Markets Consumer Titans (ECON) 7.5%
  • PowerShares S&P International Low Volatility (IDLV) 5%

According to the CNBC ETF Advisory Council guidelines, the portfolio can hold 2 “core,” broad-based ETFs -  in this case, one domestic and one international.

Looking at the equities exposure, ECON provides an interesting play on the emerging market consumer sector.

“You have the consumer exploding in the emerging markets,” Arthur explained. “So we want to make sure we own companies that give you direct exposure to those emerging markets.”

Bonds

  • iShares Core Total U.S. Bond Market (AGG) 2.5%
  • WisdomTree Emerging Markets Local Debt (ELD) 2.5%

Opportunity

  • PowerShares Senior Loan Portfolio (BKLN) 5%
  • Market Vectors Gold Miners (GDX) 5%
  • Vanguard Global ex-US Real Estate (VNQI) 5%
  • Peritus High Yield (HYLD) 5%
  • PowerShares DB US Dollar Index Bullish (UUP) 5%

The “opportunity”  holdings provide exposure to alternative investment options from mainstream stock and bond ETFs.

“These assets are expected to respond differently to economic and financial market factors than traditional stock and bond investments,” according to the CNBC guideline.

The advisory council will keep tabs on the opportunity allocations, watching technical, fundamental and other market analysis in determining the holdings.

For more information on investing toward retirement, visit our retirement category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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