1. VIG: Vanguard Dividend Appreciation (5.8%)
- This fund identifies domestic firms that have increased their dividends for at least 10 years and uses screens to avoid companies that are likely to cut dividends in the future.
- Using dividend growth as a screen results in higher quality companies – those with stronger balance sheets, lower leverage, more steady earnings, and higher profitability.
- In addition to having high quality companies that historically have shown higher returns, this fund is paired with a minimal expense ratio of only 0.10%.
- Top holdings are Johnson & Johnson, Coca-Cola, and Pepsi Co.
2. IWF: iShares Russell 1000 Growth ETF (4.3%)
- This domestic fund invests in the faster growing portion of the Russell 1000 index.
- Companies that display growth characteristics typically have strong profitability and attractive outlooks for the future. In addition, these companies tend to have higher analyst coverage.
- Top holdings are Apple Inc., Microsoft Corp., and Verizon Communications Inc.
3. EFA: MSCI EAFE ETF (3.5%)
- This fund offers diversified exposure to developed international countries in the large and mid-cap space
- About two thirds of this portfolio is represented by European firms, while the remainder is made up of companies mostly from Asia (Japan) and Australia.
- Top holdings are Nestle, Novartis, and Roche Holding.
4. QUAL: iShares MSCI USA Quality Factor (2.7%)
- QUAL invests in large and mid-cap domestic companies that display positive fundamentals – high return on equity, stable year-over-year earnings growth, and low financial leverage.
- Over time, stocks with high quality statistics have been shown to provide additional return for lower risk.
- Top holdings are Microsoft Corp., Apple Inc., and Johnson and Johnson.
5. QQQ: Powershares QQQ Trust Series ETF (2.7%)
- This funds provides exposure to large cap growth stocks with strong tilts towards technology and consumer discretionary sectors as well as the bio-tech sub sector.
- This fund provides easy tradability, it is the fourth most actively traded U.S. ETF, and it is the fifth largest U.S. ETF by assets.
- Top holdings are Apple Inc., Microsoft Corp., and Google Inc.
6. OEF: iShares S&P 100 ETF (2.6%)
- This ETF provides a low cost option to investing in 100 of the largest U.S. stocks.
- 82% of this fund invests in mega-caps which tend to be mature industry leaders with clear, sustainable competitive advantages which result in lower risk.
- Top holdings are Apple Inc., Exxon Mobile., and Microsoft Corp.
7. XLK: Technology Select Sector SPDR (2.5%)
- This fund offers broad domestic exposure to large-cap technology names.
- According to Morningstar, they believe that 95% of the firms invested in this portfolio have sustained competitive advantages.
- XLK is very concentrated with about 59% of its portfolio within the top 10 holdings.
- Top holdings are Apple Inc., Microsoft Corp, and Verizon Communications Inc.
8. DEM: WisdomTree Emerging Markets (2.4%)
- This ETF invests in emerging market countries with its constituents based on dividend yields and then further on total dividends paid.
- Currently, these screens tilt the portfolio toward large-cap names. Additionally, Chinese and Russian stocks account for about 18% of the portfolio each.
- Top holdings are OAO Gaxprom, China Construction Bank, and OJSC Roseneft Oil Co.
9. MINT: PIMCO Enhanced Short Maturity (2.4%)
- This fund seeks to be similar to a money market fund, but with greater income and total return potential.
- MINT is actively managed investing mostly in short duration investment grade debt securities.
- Top holdings are cash equivalents from the U.S. Treasury and Goldman Sachs.
10. PID: PowerShares International Dividend (2.1%)
- This fund invests in international companies who have consecutively, for at least five years, increased their dividends. From there, companies are weighted based on their dividend yields.
- Based on the screening methodology, the fund avoids yield chasing in favor of price and income growth sustainability.
- Top holdings are Navios Maritime Partners, Vodafone Group, and Teekay LNG Partners.