Core Insights - The Ben Felix Model Portfolio is a globally diversified investment strategy that utilizes index funds and tilts towards specific factors such as Size, Value, and Profitability to enhance potential returns [1][9][24] - The portfolio has outperformed the S&P 500 Index from 2000 through 2022, achieving a compound annual growth rate (CAGR) of 8.18% compared to 7.37% for the S&P 500 [2][26] - The strategy emphasizes low costs, tax efficiency, and regular rebalancing to maintain optimal asset allocation [4][6][55] Diversified Strategy - The portfolio is constructed using a mix of broad market index funds and specialized factor-tilted funds, ensuring global diversification across various asset classes, sectors, and geographies [4][10][53] - It incorporates factor investing principles, particularly focusing on Size, Value, and Profitability, to potentially achieve higher returns [6][21][27] Portfolio Allocation - The Canadian version of the portfolio includes allocations such as 30% in iShares Core S&P/TSX, 30% in Vanguard US Total Market, and 10% in Avantis US Small Cap Value [6][19] - The US/International version consists of 30% in the US stock market, 45% in developed markets, and 10% in US small-cap value [6][19] Performance Insights - A $10,000 investment in the Ben Felix Model Portfolio grew to $48,800, while the same amount in the S&P 500 grew to $41,900 over the same period [26] - The portfolio has a higher maximum drawdown of 53.43% compared to 50.97% for the S&P 500, indicating greater volatility [26][28] Risk Management & Efficiency - Regular rebalancing is employed to ensure the portfolio remains aligned with its desired asset allocation, helping to mitigate risks associated with market fluctuations [23][55] - The use of low-cost ETFs contributes to minimizing expenses, enhancing overall portfolio efficiency [22][60] Potential Drawbacks - The portfolio has underperformed the S&P 500 in recent years, primarily due to weaker international stock performance [6][39] - The 100% stock version exhibits high volatility, with a maximum drawdown of 56% during the financial crisis of 2008/09 [6][39] Introduction to Model Portfolios - Model portfolios are designed to help investors achieve specific financial goals through a balanced and diversified mix of assets, tailored to varying levels of risk tolerance and investment horizons [3][58]