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Author: yodaorange Big red star, 1000 posts Feste Award Nominee! Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 464872  
Subject: Re: Investing for the masses Date: 12/20/2012 9:53 PM
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Notehound wrote:

The ETF picks Wealthfront gave me were as follows:

VTI - US Stocks
VEA - Foreign Stocks
VWO - Emerging Markets
VNQ - Real Estate
DJP - Natural Resources
BND - Bonds

Notehound, I should have been clearer that Wealthfront, used the exact same 6 ETFs for ALL investors. What changes is the percent allocation to each ETF as the risk tolerance changes.

Their website is interactive. You can change different parts of the risk tolerance and watch it change the allocation at the same time. They use a 0 to 10 scale for risk tolerance, 0 being the lowest. If you set it to zero, it allocates ~ 5% to US stocks. Raising the risk tolerance to 10, increases the US stock allocation to ~ 45%. It is NOT a linear relationship versus risk.

I do not know if they plan to change out ETF's over time. There might be some circumstances that warrant it.

All in all, I pretty useful site and account manage for many investors IMO.


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