Uncorrelated Assets: What to Add to Your “Better” 60/40
Last week, I shared a “bonus” play: a way to construct Wall Street’s gold-standard “60/40” portfolio for only $0.67 on the dollar. Today, we’ll consider what you might do with the $0.33 that you free up with that approach. Now, it doesn’t make sense to buy more equities with that $0.33. When you buy shares of the WisdomTree U.S. Efficient Core Fund (NYSE: NTSX), you have nearly the same allocation to equities as the standard 60/40. Buying more equities with your remaining $0.33 will only expose you to more risk. Same goes with bonds. You don’t want to buy more bonds with the remaining $0.33.
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