Here are the components and weighting of the all equity version, all of the funds are from iShares;
- S+P 500 Barra Growth IVW 32%
- S+P 500 Barra Value IVE 32%
- Russell Midcap Growth IWP 7%
- Russell Midcap Value IWS 7%
- Russell 2000 Growth 3%
- Russell 2000 Value 4%
- MSCI EAFE 13%
- Cash 2%
So the portfolio makes no effort to add value with sector weightings. The bank's strategist is on CNBC all time talking about sector weighting so the portfolio does not leverage off of this part of the bank's work.
I believe another flaw is only using EFA for foreign exposure. More than 40% of the fund is western Europe. I have written a few times my belief about the correlation between economic and stock market cycles of Europe and the US growing tighter. If this holds water that should mean the products like EFA will not offer as much diversification as in the past.
The last point to make, and I mention this all the time about ETFs, is that the portfolio yields 1.69% which is a little less than the market. In a flat market I think it makes sense to overweight dividends.
To sum I think a lot of people could come up with the same thing on their own and with just a little bit of effort capture a little more yield and diversification.