FundAdvice Paul Merriman Ultimate Buy and Hold All Stocks
0.63%April 16 | MyPlanIQ portfolio symbol P_76678

  • Portfolio Overview
  • Asset Allocation and ETFs
  • Performance
  • Calculators
  • Rolling Returns
  • Drawdowns

Portfolio Overview


1. Background and Philosophy

The FundAdvice Paul Merriman Ultimate Buy and Hold All Stocks portfolio was created by Paul Merriman, a renowned financial educator, author, and founder of Merriman Wealth Management. Merriman advocates for a passive, long-term investment strategy with a focus on value and small-cap stocks, which historically have outperformed the broader market over extended periods. His philosophy emphasizes diversification across asset classes and tilting toward factors (like value and size) to enhance returns while managing risk.

2. Asset Allocation Analysis

The portfolio is 100% allocated to equities, with no bonds or fixed income, making it high-risk but potentially high-reward for long-term investors. Here's a breakdown:

  • U.S. Stocks (40%): Split evenly between VTI (total market), VTV (large-cap value), IJR (small-cap), and IJS (small-cap value). This provides exposure to both growth and value factors.
  • International Stocks (40%): Includes VEA (developed markets), EFV (foreign value), SCZ (foreign small-cap), and DLS (foreign small-cap value). This diversifies globally and captures international value and small-cap premiums.
  • Emerging Markets (10%): VWO offers growth potential but adds volatility.
  • REITs (10%): VNQ provides real estate exposure, acting as a hedge against inflation.

Pros:

  • Extreme diversification across geographies, sectors, and factors.
  • Historical outperformance of value and small-cap stocks over long periods.
  • Low-cost ETFs keep expenses minimal.

Cons:

  • High volatility due to 100% equity allocation.
  • Underperformance risk during large-cap growth dominance.
  • Complexity with 10 funds may deter some investors.

3. Practical Application in Retirement Accounts

For 401(k) Accounts:

Investors should:

  1. Match ETFs to available funds: For example, replace VTI with an S&P 500 or total U.S. stock market fund in the 401(k).
  2. Use broader funds if exact matches aren't available: If small-cap value (IJS) is missing, allocate to a U.S. small-cap or extended market fund.
  3. Prioritize international exposure: If foreign small-cap (SCZ) isn't available, use a developed markets fund.
  4. Skip unavailable asset classes: If REITs (VNQ) aren't an option, redistribute to other equity funds.

For IRA Accounts:

Investors can replicate the portfolio exactly by purchasing the ETFs directly. IRAs offer more flexibility than 401(k)s.

Note: This portfolio is not suitable for conservative investors or those nearing retirement due to its aggressive stance. Regular rebalancing (annually or biannually) is recommended.

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Asset Allocation


Symbol Category/Sector Target Weight
VTI
Vanguard Total Stock Market ETF 		US Equity 10%
VTV
Vanguard Value ETF 		US Equity 10%
IJR
iShares Core S&P Small Cap ETF 		US Equity 10%
IJS
iShares S&P Small-Cap 600 Value ETF 		US Equity 10%
VEA
Vanguard FTSE Developed Markets ETF 		International Equity 10%
EFV
iShares MSCI EAFE Value ETF 		International Equity 10%
SCZ
iShares MSCI EAFE Small-Cap ETF 		International Equity 10%
DLS
WisdomTree International SmallCap Dividend Fund 		International Equity 10%
VWO
Vanguard FTSE Emerging Markets ETF 		International Equity 10%
VNQ
Vanguard Real Estate ETF 		Real Estate 10%


Historical Performance


The return data shown below all have the same latest date: 04/16/2025.
AR inception is since 12/12/2007.
Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
FundAdvice Paul Merriman Ultimate Buy and Hold All Stocks -3.26% 6.62% 3.15% 11.82% 6.08% 7.64% NA 5.67%
VFINX (VANGUARD 500 INDEX FUND INVESTOR SHARES) -9.99% 5.71% 7.80% 15.21% 11.50% 12.41% 9.94% 9.79%
VSMGX (VANGUARD LIFESTRATEGY MODERATE GROWTH FUND INVESTOR SHARES) -2.46% 6.56% 4.41% 7.52% 5.36% 6.37% 5.86% 5.11%

FundAdvice Paul Merriman Ultimate Buy and Hold All Stocks Return Calculator

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Calculators


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Rolling Returns


From 12/12/2007 to 04/16/2025, the worst annualized return of 3-year rolling returns for FundAdvice Paul Merriman Ultimate Buy and Hold All Stocks is -3.21%.

From 12/12/2007 to 04/16/2025, the worst annualized return of 5-year rolling returns for FundAdvice Paul Merriman Ultimate Buy and Hold All Stocks is 0.53%.

From 12/12/2007 to 04/16/2025, the worst annualized return of 10-year rolling returns for FundAdvice Paul Merriman Ultimate Buy and Hold All Stocks is 5.33%.


Maximum Drawdown

FundAdvice Paul Merriman Ultimate Buy and Hold All Stocks Maximum Drawdown