In the article Farrell cited a version of a lazy portfolio put forth by Jeremy Siegel using WisdomTree funds. What I think is evolutionary is someone at Farrell's readership level allowing for the possibility that something new could be better.
As a hasty generalization it seems like a lot of the financial journalism luminaries are slow to embrace new things.
Per the article, Siegel's portfolio is as follows;
- Total Dividend Fund DTD 15%
- Earnings Index Fund EXT 15%
- DEFA Fund DWM 20%
- High Yield Equity Index DHS 10%
- DEFA HighYield Equity Index DTH 10%
- Intl Energy Sector DKA 10% client holding
- Intl Consumer Non Cyclical DPN 10% this one is very heavy in healthcare stocks
- Low P/E Index Fund EZY 10%
I wrote about a funky version of a lazy portfolio about six weeks ago. The intention with that post was not to come up with something I will use but to illustrate that a lazy portfolio can draw in from many different places.
I should note that I have been a big fan of WisdomTree's dividend ETFs right from the start, they seem like an obvious way to add value but I am not so sure about the earnings ETFs just yet.
The laziness I put out was as follows;
- iShares Dividend DVY 25% client holding
- Rydex Small Cap 600 Pure Value RZV 15%
- WisdomTree DEFA High Yielding Equity DTH 25%
- BLDRS Emerging Market ADRE 5% client and personal holding
- DB Gold ETF DGL 5%
- iShares TIP ETF 20% client holding
- Advent Claymore Convert Fund AVK 5% client holding
To be clear, I don't have this mix for anyone it is just an academic exercise.
Generally I am not a fan of the concept but that might just be a quirky bias on my part. I don't think the bias is because of what I do for work as this blog gives away just about all the process, (as I think of it) but not really the names, for do-it-yourselfers can learn a little bit more.
That Farrell allows for WisdomTree having a place at the table might mean that some folks who would not have otherwise looked at these funds now will and I view that as a positive.