We create portfolios using low cost F-class funds from Dimensional Fund Advisors (DFA) as well as exchange-traded funds (ETFs) from Vanguard and iShares. Our preference is to use DFA factor-tilted funds in client accounts. However, if you prefer non-factor-titled portfolios, Vanguard and iShares are for you - and they are excellent choices. The final decision will be made in consultation with your portfolio manager.
Since we absorb all trading and custodial costs for our clients at Virtual Brokers, we use "one-fund" solutions for accounts under $100k. This helps keep our costs low and service those with smaller account balances. As your account balance grows past $100k, we may add additional funds to help increase your tax efficiency.
We may use one, two or multiple fund portfolios for these accounts. The decision will be made in consultation with your portfolio manager and depend on your unique circumstances.
In the chart below, the portfolios link to one-fund and two-fund solutions. If your circumstances require three or more funds, the information below is still very much relevant. You will own the individual component funds in similar allocations to the one-fund and two-fund solution. We have omitted 0%, 30% and 90% equity portfolios from the chart below but can provide these options if needed.
A word about bond (fixed income) funds: some of these funds can be expensive due to adverse tax treatment. If you have non-registered accounts, we may substitute more tax-efficient bond funds for the Vanguard and iShares bond funds listed below.
|DFA Global 40% Equity/60% Fixed Income|
|iShares Core Income Balanced ETF|