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Choose 5 ETFs with a minimum of ten years of performance data from Yahoo Finance. One of these ETFs must be VTI ( Vanguard Total
Choose ETFs with a minimum of ten years of performance data from Yahoo Finance. One of these ETFs must be VTI Vanguard Total Stock Market ETF or a similar benchmark. Aim for maximum diversification in your selection, covering different sectors and asset classes. In addition to VTI as your portfolio's 'Anchor', include:
A 'Diversifier': Select an asset class that is uncorrelated with VTI, such as commodities, alternative investments, or private equity.
A 'Counterbalance': Include ETFs that represent various bonds government corporate, foreign, or municipal to stabilize your portfolio's returns.
A 'Booster': Choose ETFs focusing on highgrowth industries like AI semiconductors, biotechnology, or green technology to potentially enhance your portfolio's growth.
After selecting your ETFs, prepare the following three tables:
TABLE : a single table showing the following information for each of your ETF:
ETF Ticker
Monthly return statistics arithmetic and geometric averages, standard deviation
Current value of $ IF invested years ago
All values in the table should LINK back to the original raw data you downloaded from Yahoo! Finance.
Betas relative to VTI to indicate each ETF's contribution to your portfolio's overall volatility. TABLE : Variance Covariance Matrix to show diversification benefits of each ETF.
TABLE : Correlation Matrix make sure that no correlation is above ideally all correlations should be as low as possible to derive the maximum diversification benefits.
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