This portfolio primarily pursues longer term appreciation and income with exposure to growth through capital gains and consistent dividends. Using an average of eight (8) to ten (10) ETFs, it maintains an allocation target generally around 60% high-yield domestic and global equities, 15% US Treasuries, 15% high-yield fixed income securities, and about a 10% exposure to international real estate markets. We believe the Enhanced Yield portfolio is adequate for investors with a moderate risk tolerance, intermediate to long time horizon, and high current income requirements.
Positions are generally held longer than a year unless market conditions warrant. The 15% allocation generally in US treasuries may be replaced with global credit market exposure such as emerging markets bonds and sovereign debt ETFs. Allocations may move to cash equivalents or hedging positions when market conditions warrant.