Purpose
It helps mitigate volatility, protect against downside, and achieve long-term compounding. High-return assets alone are vulnerable during downturns, and asset allocation reduces these psychological and structural risks.
Core Principles
- Diversification: combine asset classes with low correlation
- Consistency: stick to your defined rules (calendar/band)
- Simplicity: prioritize feasibility over over-segmentation
Key Strategies
60/40: Stocks 60% / Bonds 40%. Simple and proven balanced approach.
Permanent Portfolio: 25% each in stocks/bonds/cash/gold. Emphasizes diversification across economic regimes.
Risk Parity: An approach that adjusts weights proportionally to each asset's volatility.
Tips for Korean Investors
FAQ
How many ETFs should I start with?
Starting with 2–4 ETFs is sufficient.
Which bond ETF is best?
Consider AGG, IEF, TLT and others based on duration, fees, and liquidity.
How do I set my rebalancing frequency?
Start with quarterly to annual, and combine with band conditions for efficiency.
How do I choose between hedged and unhedged ETFs?
Decide based on your KRW volatility sensitivity and need for USD diversification. Also consider costs.
Apply Now
Design an asset allocation that fits your goals.