History
Armstrong's model allocations influenced early index-investing discussions.
Philosophy
Use simple index funds to capture broad and tilted equity exposure without stock picking.
Factor / QuantDiversificationFactor basedModerateMedium complexity
Frank Armstrong Ideal Index
A Frank Armstrong-style index portfolio with equity slices, international stocks, REITs and short bonds.
Asset allocation
US Stocks
16%Small Cap Value
15%International Stocks
31%REITs
8%Short Bonds
30%Performance
How this allocation behaved across modern markets
Annual rebalancing, local bond and cash proxies where relevant, and optional inflation adjustment through CPI.
1970-2024Log scale
CAGR
9.0%
1970-2024
Max drawdown
-24.2%
Volatility
11.3%
Worst year
-19.7%
2008
Implementation
Local products and proxies
🌐 Frank Armstrong Ideal Index implementation
Long-term individual investor
Use broad, low-cost funds or ETFs matching each asset class.
Account notes: Implementation depends on local account types and tax wrappers.
Costs: Prefer low-cost, liquid vehicles.
Rebalancing: Annual rebalancing or tolerance bands.
Tax: Country-specific tax treatment should be reviewed before implementation.
Product names are implementation examples for research. Availability, taxation, share classes and suitability should be checked with the investor's broker and tax situation.
Similar portfolios
Adjacent ideas in the atlas
Ideal Index Portfolio
A slice-and-dice lazy portfolio using international stocks, short bonds, REITs and US equity tilts.
International Stocks31%
Short Bonds30%
US Stocks16%
Small Cap Value15%
REITs8%
Open atlas entry
Coward's Portfolio
A diversified lazy allocation using broad equity slices, small-cap value, listed real estate and bonds.
US Stocks30%
Bonds30%
International Stocks20%
Small Cap Value10%
REITs10%
Open atlas entry
Ultimate Buy & Hold REIT Variant
A Merriman-style tilted equity portfolio with a dedicated REIT allocation.
US Stocks30%
International Stocks25%
Small Cap Value20%
Value Stocks15%
REITs10%
Open atlas entry
7Twelve Portfolio
A highly diversified multi-asset portfolio with 12 equally weighted sleeves across seven asset groups, designed to smooth returns across economic regimes.
US Stocks8.3%
International Developed Stocks8.3%
Emerging Markets Stocks8.3%
US Bonds8.3%
Others66.6%
Open atlas entry
Core Four 60/40 Portfolio
A moderate Core Four variant that pairs global equities with bonds and a small REIT allocation.
Bonds40%
US Stocks30%
International Stocks24%
REITs6%
Open atlas entry