Investing Demystified, 2nd Edition

Chapter 12

Products and implementation

To implement the rational portfolio:

• We need to find the best products that give us exposure to geographically broadly diversified equity markets, minimal risk government bonds and potentially other government and corporate bonds.
• We want to do this in a way that is tax optimal.
• We need to combine the securities in a way that reflects our risk preference.

The past decades have seen an explosion in the number of products available to the index-seeking investor, and this development continues unabated. As new products come to market there is a risk that the information outlined here grows stale quickly and I would strongly encourage the reader to survey the market for new and better products before ...