Introduction to 7Twelve Model

Posted on January 15th, 2013 at 3:33 PM

By: Craig L. Israelsen, Ph.D.

www.7TwelvePortfolio.com

This brief report introduces a multi-asset portfolio design that brings a higher standard to the notion of  “diversified”. This design is referred to as the 7Twelve portfolio. 

The name “7Twelve” refers to “7” asset categories with “Twelve” underlying mutual funds. The seven asset categories include: US stock, non-US stock, real estate, resources, US bonds, non-US bonds, and cash. The 7Twelve model is shown below in Figure 1. 

The 12 mutual funds utilized in the 7Twelve design can be index funds, exchange traded funds (ETFs), or regular mutual funds. All 12 funds are equally weighted in the “core” 7Twelve model (each with an allocation of 8.33%). The equal-weighting is maintained by periodic rebalancing. There are also three “Age Based” versions of the 7Twelve model that progressively reduce the risk of the portfolio.

You can build a 7Twelve portfolio using mutual funds from a variety of mutual fund companies. This report outlines a 7Twelve portfolio built with ETFs and index funds—referred to as the “Passive” 7Twelve model.

Read more in the Full PDF here

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.

LATEST NEWS AND ARTICLES

January 25, 2022
Top FINRA Initiatives For 2022

A host of new initiatives are ahead in 2022 at the Financial Industry Regulatory Authority (FINRA), according to CEO Robert Cook.

January 24, 2022
FINRA Set To Issue Crypto Notice And Consider Expungement Reform

The Financial Industry Regulatory Authority (FINRA) is set to issue a regulatory notice pertaining to cryptocurrency as well as expungement reform.

January 21, 2022
CFP Board Establishes New Appeals Commission

The Certified Financial Planner (CFP) Board of Standards has established a new Appeals Commission. As the name suggests, the Appeals Commission possesses the sole authority to adjudicate appeal hearings.