August 13, 2026: We recommend the following change to our Model Fund Portfolio…
International stocks are showing continued strength and becoming increasingly attractive as they offer reduced exposure to the overconcentrated and exuberant AI theme while boasting strong relative valuations and diversified sector allocations. As a result, we are recommending an incremental increase to the international value allocation in our Model Fund Portfolio:
- Increase the position in the Schwab Fundamental International Equity ETF (Symbol: FNDF) to 6%. This fund provides diversified exposure to the international equity market with an emphasis on key company fundamentals.
Following this change, the Model Fund Portfolio is comprised of 62.5% long positions, 5% in an inverse index ETF, 5% in an intermediate Treasury ETF, and 27.5% cash held in short-term Treasurys or a money market fund. This results in 57.5% net equity exposure.