AAII Model Portfolios Articles

Model Fund Portfolios: Answers to Questions About the Level3 Approach

November 2016 by James Cloonan
Find out why foreign and small-cap stocks are excluded and how the new approach fits into an individual investor’s portfolio. Read more »

New Rules for Model Shadow Stock Portfolio, Including Momentum

October 2016 by James Cloonan
The portfolio rules governing market capitalization and industry classification were modified, and a new momentum requirement was added. Plus, three new stocks were added to the portfolio. Read more »

Model Fund Portfolio: Introducing the Level3 Passive Portfolio

August 2016 by James Cloonan
The new Level3 Passive Portfolio is an ETF portfolio comprising funds that should have returns higher than the S&P 500 over the long run. Read more »

Model Shadow Stock Portfolio: The Limitations of a Real Portfolio

July 2016 by James Cloonan
A key difference between strategies and real portfolios is not being able to buy all passing stocks due to limited investment dollars. Read more »

Model Fund Portfolio Holding Opens to New Investors

May 2016 by James Cloonan
Aston/Fairpointe Mid Cap reopened to new investors. Plus, see the special note about upcoming changes to the All-ETF Portfolio. Read more »

Model Shadow Stock Portfolio: Many Opportunities Among Micro Caps

April 2016 by James Cloonan
The price decline in micro caps made valuations more attractive. Plus, one shadow stock was deleted due to a lack of profitability. Read more »

Model Fund Portfolio: REITs Show Their Long-Term Value

March 2016 by James Cloonan
During the portfolio’s past 12 years, long-term equity REITs have provided excellent diversification without sacrificing return. Read more »

Revised Guidance on Following the Model Shadow Stock Portfolio

January 2016 by James Cloonan
Restrict purchases to Shadow Stocks whose average daily dollar volume is at least 10 times the desired amount to be invested. Plus, see the new additions. Read more »

Model Fund Portfolio: Missing the Pre-Election Bull

November 2015 by James Cloonan
The pre-election-year bull is nowhere to be seen, but none of the portfolio’s funds are violating the sell rules. Read more »

The Model Shadow Stock Portfolio’s Long-Term Performance

October 2015 by James Cloonan
The power of compounded returns has led to the portfolio’s great long-term return. A new chart helps to show the relative impact on returns. Read more »

Model Fund Portfolio: Diversification Offsets Weak Performers

August 2015 by James Cloonan
A big gain in First Trust US IPO (FPX) helped to offset the drag caused REITs and frontier markets being out-of-favor. Read more »

Major Rule Change Made to the Model Shadow Stock Portfolio

July 2015 by James Cloonan
The maximum price-to-book ratio has been increased. Plus, three stocks were added and a fourth reinvested into. Read more »

No Reason to Switch Funds in the Model Fund Portfolio

May 2015 by James Cloonan
Aston/Fairpointe continues to have one of the highest long-term returns, while none of the competitors to our funds or ETFs justify making a change. Read more »

Model Shadow Stock Portfolio: Sell Rules Dictate a Change

April 2015 by James Cloonan
One stock was replaced after blowing through both the value and market-capitalization limits. Plus, insight into the portfolio’s performance. Read more »

Dramatic Changes Help and Hurt the Model Fund Portfolio

March 2015 by James Cloonan
Upward volatility in REITs has been offset by oil-related declines in frontier markets. Both asset classes still look attractive on a long-term basis. Read more »

Two New Stocks Added to the Model Shadow Stock Portfolio

January 2015 by James Cloonan
The latest additions are discussed, along with the portfolio’s 2014 performance and expectations for 2015. Read more »

Replacing a Mutual Fund With an ETF in the Model Fund Portfolio

November 2014 by James Cloonan
One mutual fund has been removed because of its expense and performance and is being replaced with an IPO-focused ETF. Read more »

Maintaining Model Shadow Stock Portfolio Purchase Rules

October 2014 by James Cloonan
Though no new non-Chinese stocks are qualifying, there is not enough cash in the portfolio to justify looser purchase rules. Read more »

Model Fund Portfolio: Adjust Risk Based on Personal Factors

August 2014 by James Cloonan
Performance figures for the Conservative Portfolio are being dropped because the proper risk exposure is unique to each investor. Read more »

A New Constraint Added to the Model Shadow Stock Portfolio Rules

July 2014 by James Cloonan
A rule eliminating candidates with negative earnings estimates has been formalized. Plus, see the latest transactions. Read more »

REITs and Frontier Markets Drive Model Fund Portfolio Higher

May 2014 by James Cloonan
Good first-quarter returns by the REIT and frontier markets funds helped the Model Fund Portfolio beat the S&P 500 on a year-to-date basis. Read more »

Model Shadow Stock Portfolio Rules Amended and Clarified

April 2014 by James Cloonan
The valuation and market capitalization sell rules have been amended. Plus, the maximum price to pay for new stocks is now listed. Read more »

Model Fund Portfolio: Replacing a Closed Fund

March 2014 by James Cloonan
Fidelity OTC (FOCPX) is being added to replace Yacktman Focused (YAFFX). Plus, Jim’s thoughts about closed mutual funds. Read more »

Model Shadow Stock Portfolio: Purchase Guidelines and Rule Changes

January 2014 by James Cloonan
Guidelines regarding price action and news are discussed, as well as a higher market capitalization limit and the latest portfolio changes. Read more »

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