Ben felix model portfolio

I'm a huge fan of Ben Felix and his proposed factor tilts. Here we'll look at how to construct a U.

He is widely recognized for his expertise in the field of investing and financial management and has created a model portfolio, the Ben Felix Model Portfolio. In this post, we take a look at Ben Felix Model Portfolio. We end the article with a backtest of the strategy as a matter of fact, we make several backtests. The Ben Felix Model Portfolio is a globally diversified investment strategy that utilizes index funds and tilts towards specific factors, such as size, value, and profitability factor investing. The portfolio is designed to provide investors with a diversified investment strategy that is based on academic research and data analysis. It comprises several different asset classes, including domestic and international stocks, and sometimes, bonds. But it is achieved using index funds.

Ben felix model portfolio

As a teaser, the ETF model portfolios are a combination of low cost Canadian, US, International Developed and Emerging market-cap weighted equities , a dip-your-toes sprinkling of small-cap value funds and Canadian aggregate bonds. Hey guys! This investing opinion blog post is entirely for entertainment purposes only. There could be considerable errors in the data I gathered. This is not financial advice. Do your own due diligence and research. Consult with a financial advisor. Ben Felix and Cameron Passmore are the Canadian duo responsible for creating the popular Rational Reminder Podcast , Rational Reminder Website and high engagement Rational Reminder Community where investors of all walks of life can interact and discuss topics related to investing strategies and personal finance. As a fellow content creator myself, albeit in the travel sphere as my day job, I greatly admire the effort Cameron and Ben have put forth to consistently produce informative content with a wide range of podcast guests and for creating a community space where investors can learn, grow and share ideas together. Additionally, Ben Felix has a YouTube channel where he makes focused teleprompter-style scripted videos on a wide variety of investing subjects. Boglehead style investors and the Rational Reminder Model Portfolios seek to own equity market-cap weighted indexes at the lowest cost possible. Canada is well known for many positive attributes but an unfortunate one is that it has some of the highest mutual fund fees in the world and a plethora of still existing gawd awful legacy investing products. Hence, being able to own the entire market as opposed to searching for a needle in the haystack for as cheap as possible has revolutionized the way DIY investors can now assemble portfolios. Market-cap weighting is essentially owning individual equities within the index weighted according to their relative total market capitalization. Hence, the benefits of owning the market at a low cost have to be weighed versus the potential for s of basis points of outperformance offered by higher fee factor-focused strategies that have historically outperformed market-cap weighted indexes.

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He is widely recognized for his expertise in the field of investing and financial management and has created a model portfolio, the Ben Felix Model Portfolio. In this post, we take a look at Ben Felix Model Portfolio. We end the article with a backtest of the strategy as a matter of fact, we make several backtests. The Ben Felix Model Portfolio is a globally diversified investment strategy that utilizes index funds and tilts towards specific factors, such as size, value, and profitability factor investing. The portfolio is designed to provide investors with a diversified investment strategy that is based on academic research and data analysis.

Ben felix model portfolio

Their advice at its core is to follow an evidence-based investing approach that starts and usually ends with a low cost, globally diversified, and risk appropriate portfolio of index funds or ETFs. Simplify this even further by investing in a single asset allocation ETF that automatically rebalances itself. But I took a long-time to switch to indexing because the product landscape was less than ideal. Then, in , Vanguard again changed the game when it launched a suite of asset allocation ETFs designed to be a one-fund investing solution. It would be great if the debate ended there, but this is investing and many of us are wired to look for an edge to boost our returns. Index investors are not immune to this. Not content with a total market, all-in-one solution, some indexers look to reduce their fees even more by holding U. Again, the idea here is to reduce the cost of your index portfolio and reduce or eliminate foreign withholding taxes. By selecting certain individual ETFs over the all-in-one asset allocation ETF an investor can save a not-so-insignificant 0.

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Don't subscribe All new comments Replies to my comments Notify me of followup comments via e-mail. Our equity sleeve consists of equal parts global exposure to single factor funds covering Value, Momentum , Quality, Size, Yield and Minimum Volatility. All investing involves risk, including the risk of losing the money you invest. The underperformance is due to the international stock which have performed poorly during the period. The first portfolio we make is for U. All examples above are hypothetical, do not reflect any specific investments, are for informational purposes only, and should not be considered an offer to buy or sell any products. What exactly…. Remember though that there have been extended rolling periods where factors delivered a negative premium from time to time. Here we'll look at how to construct a U. I co-founded Aksjeforum. As such, the model portfolio here is conveniently constructed with popular, low-fee ETFs. Will be interesting to see how these 2 play out over time. We have been arguing the same on this blog for many years. It is a simple yet effective way of investing, with the goal of providing long-term growth and stability.

I'm a huge fan of Ben Felix and his proposed factor tilts. Here we'll look at how to construct a U. Interested in more Lazy Portfolios?

Felix maintains that there is a tradeoff between simplicity and optimization in index investing, and that we can look at the robust data supporting the Fama-French 5 Factor Model to slightly boost expected returns by diversifying across not only geographies but also risk factors outside of just market beta, providing globally diversified index exposure with small tweaks to increase factor exposure. Thank you. It has come out ahead on both a general and risk-adjusted basis, albeit with slightly greater volatility and a slightly larger max drawdown. My intent is to offer potential solutions for investors seeking to take things one, two or three steps further in terms of conviction levels. Ben Felix believes that there is a tradeoff between simplicity and optimization in index investing, and the portfolio is designed to balance this. We end the article with a backtest of the strategy as a matter of fact, we make several backtests. One of them has sold 30, copies, a record for a financial book in Norway. If I wanted to follow tilt, what do you think of this portfolio? Previous Previous. The login page will open in a new tab. Mebane T. Because the interest rates determine the value of stocks. The goal of this portfolio is to provide investors with globally diversified exposure to the market while also taking into account the factor-based investing approach with the aim of boosting expected returns. Table of contents: Toggle. He is widely recognized for his expertise in the field of investing and financial management and has created a model portfolio, the Ben Felix Model Portfolio.