Investment Ideas


Five Ideas for Your Core Portfolio


Target Specific Investment Goals


With access to 22 low-cost SPDR® Portfolio ETFs™ spanning fixed income, domestic and international equities, it's easy to tilt your core toward your unique investment objectives:


Improve Diversification

Gain transparent and cost efficient access to all corners of the world.


Manage Risk and Return

Tailor portfolios to risk and return expectations.


Seek Income

Adjust allocations based on income expectations.


Based on our Investment Solutions Group's targeted long-term strategic asset allocation framework and models, these illustrative examples show ideas on how to build low-cost core portfolios that can be tailored to meet risk and return objectives.


Conservative


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This portfolio seeks to:

  • Generate current income
  • Preserve capital
  • Preserve purchasing power (with some consideration for capital growth)

Weighted Average Cost (Basis Points): 3.9


Moderate-Conservative


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This portfolio seeks to:

  • Generate current income
  • Preserve capital
  • Achieve some long-term capital growth

Weighted Average Cost (Basis Points): 3.8


Moderate


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This portfolio seeks to:

  • Balance dual objectives of long-term capital growth and high current income
  • Emphasize capital appreciation

Weighted Average Cost (Basis Points): 3.7


Moderate-Aggressive


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This portfolio seeks to:

  • Achieve capital growth with emphasis on capital appreciation
  • Generate some current income

Weighted Average Cost (Basis Points): 3.6


Aggressive


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This portfolio seeks to:

  • Grow capital with higher allocation to small-cap equities, international equities
  • Achieve growth over a long term investment horizon

Weighted Average Cost (Basis Points): 3.5


How to Invest


View Our Low-Cost ETFs

See the full range of 22 low-cost SPDR Portfolio ETFs, starting from just 3bps.

Four Principles of Core Construction

An effective core may differ from one investor to the next, but four construction principles apply to all.

Model Portfolios

Leave the asset allocation to us! SPDR ETFs have ready-made portfolios that include our low-cost range.

Footnotes

Prior to 01/24/2020, the SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) was known as the SPDR Portfolio Total Stock Market ETF (SPTM).

Disclosures

All asset allocation scenarios are for hypothetical purposes only and are not intended to represent a specific asset allocation strategy or recommend a particular allocation. Each investor's situation is unique and asset allocation decisions should be based on an investor's risk tolerance, time horizon and financial situation.

The educational information provided herein is not investment advice or a recommendation, and you should not rely on it as investment advice or a recommendation. You should consult with your tax and financial advisor prior to making any investment decision.

This information is provided on an "as-is" basis. State Street Global Advisors and its affiliates expressly disclaim all warranties, express or implied, statutory or otherwise with respect to the information (and any results obtained from its use) including, without limitation, all warranties or merchantability, fitness for a particular purpose or use, accuracy, completeness, originality and/or non-infringement. In no event shall State Street Global Advisors or its affiliates have any liability for any claims, damages, obligations, liabilities or losses relating to the use of this information including, without limitation, any liability for any direct, indirect, special, incidental, punitive and/or consequential damages (including loss of profits or principal).

No asset allocation model is a guarantee against loss of principal. There can be no assurance that an investment allocation determination using the information provided will be successful.

Risk associated with equity investing includes stock values which may fluctuate in response to the activities of individual companies and general market and economic conditions.

Non-diversified funds that focus on a relatively small number of securities tend to be more volatile than diversified funds and the market as a whole.

Foreign investments involve greater risks than US investments, including political and economic risks and the risk of currency fluctuations, all of which may be magnified in emerging markets.

Bond funds contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; issuer credit risk; liquidity risk; and inflation risk.

Some of the funds may contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; inflation risk; and issuer call risk.

The values of debt securities may decrease as a result of many factors, including, by way of example, general market fluctuations; increases in interest rates; actual or perceived inability or unwillingness of issuers, guarantors or liquidity providers to make scheduled principal or interest payments; illiquidity in debt securities markets; and prepayments of principal, which often must be reinvested in obligations paying interest at lower rates.

Passively managed funds invest by sampling the index, holding a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics. This may cause the fund to experience tracking errors relative to performance of the index.

Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.

Equity securities may fluctuate in value in response to the activities of individual companies and general market and economic conditions.