Objective

In 1952, Nobel economist Harry Markowitz established modern portfolio theory (MPT). The goal of investing using MPT became for a portfolio to deliver the greatest returns for the least amount of risk.

In 1958, Nobel economist James Tobin concluded that while many possible portfolios exist, there is only 1 super-efficient portfolio that cannot be improved upon. The super-efficient portfolio sits on a knife edge of utility where any change made to it is a change for the worse, delivering poorer returns for greater risk.

In 1964, Nobel economist William Sharpe proved that Tobin’s super-efficient portfolio was none other than the global market portfolio: the portfolio of all risky assets proportionally weighted by their market prices.

CWM’s Global Market folio approximates this super-efficent portfolio through the use of index ETFs that mirror the various underlying asset classes.

CWM folios are created and maintained by Conservative Wealth Management LLC using their proprietary asset allocations and consist of ETFs. You can learn more about Conservative Wealth Management LLC by visiting their website at www.cwmllc.com.

Please review the investment information at www.cwmllc.com to ensure that this folio meets your investment objectives.

Strategy

The CWM Global Market folio seeks to mirror the capitalization-weighted investable allocation of all assets in the world. It is based on the Nobel-prize winning works of Harry Markowitz, James Tobin, and William Sharpe, and seeks to capture the long-term growth of capital in global capital markets. Index ETFs are employed to glean the returns of all major asset classes from the global market in a single portfolio. As the “portfolio of everything,” it seeks to deliver (net of frictions) the returns and risks of the entire global investable market.

Last Updated: December 8, 2016

Category: Strategy
Inception Date: 2014-07-28 00:00:00.0
Date Funded: 2014-07-28*

Folio S&P 500 Total Return
One-Month 0.46% 5.2%
Three-Month -1.6% 3.54%
Year-to-Date 5.95% 12.21%
One-Year 5.5% 11.25%
Three-Year (Annualized) N/A 9.84%
Five-Year (Annualized) N/A 15.15%
Since Inception 2.02% N/A
Volatility 7.48% 13.68%

Past performance is no guarantee of future results.
See how returns are calculated

* Returns reflect model performance from the Inception Date to the Date Funded, and funded performance since the Date Funded, if funded. Your returns may deviate significantly from the values displayed here, due to many factors, including how long after a strategy has been updated that you place orders to update your holdings.

#SymbolCompanyWeight
(% of Folio)
1AGGishares barclays aggregate bond fund18.70%
2BNDXvanguard total international bond etf23.80%
3EMLCvaneck vectors jp morgan mkts loc curr2.50%
4GLDspdr gold shares1.50%
5HYXUishares inc gl hg yl cp bd0.80%
6JNKspdr barclays capital high yield bond et0.80%
7MUBishares s&p national municipal bond fund3.50%
8PSPpowershares listed private equity portfo3.90%
9TIPishares barclays tips bond fund1.00%
10VEAvanguard ftse developed markets etf16.30%
11VNQvanguard reit etf1.80%
12VNQIvanguard global ex-u.s. real estate inde3.10%
13VTIvanguard total stock market index fund19.00%
14VWOvanguard emerging markets index fund2.30%
15WIPspdr db international government inflati1.00%

Steps to Create This Folio

  1. Conservative Wealth Management LLC’s Global Market folio begins with the 2012 academic research of Doeswijk, Lam, and Swinkels that measure the weights of the various global asset classes, and then translates and updates this research to the present through the use of index ETFs. It also includes a proportionate allocation to gold and municipal bonds, not called out in the Doeswijk, Lam, and Swinkel’s model.
  2. The folio was created using proprietary methodology at Conservative Wealth Management LLC based on research by Doeswijk, Lam, and Swinkels published in 2014 in the Financial Analysis Journal.
  3. Exchange-traded funds were selected by Conservative Wealth Management LLC using their proprietary criteria.
  4. Securities were then weighted Conservative Wealth Management LLC using their criteria.

Number of Securities

There are 15 ETFs in the folio.

Update Frequency

The CWM Global Market folio is not expected to be rebalanced.

If the characteristics of the folio have changed substantially, the securities included may change. Also, corporate actions, such as a merger, or other events may cause changes to the securities held at any time. Your returns may deviate significantly from the values displayed here, due to many factors, including how long after a folio has been updated that you place orders to update your holdings.