Master portfolios to beat Hargreaves Lansdown’s

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Income portfolio / Whole of market

This master portfolio is for income-orientated investors wanting to invest without any restrictions.

This investment portfolio contains 5 holdings:

ETF	Weighting	Annual yield, %	Annual expenses, %
VWRL – Vanguard FTSE World Equities ETF	30%	2.2%	0.22%
CTY – City of London Investment Trust	20%	~5%	0.33%
IUKP – iShares UK Property ETF	10%	3.1%	0.4%
HYG: iShares iBoxx $ High Yield Corporate Bonds ETF	20%	5.2%	0.49%
INXG: iShares Inflation-linked UK Gilts ETF	20%	0.8%	0.07%

This portfolio is 50% equities, split 2:3 UK:global. The UK holding is one of the large Investment Trusts; this is not quite an index tracker and accordingly costs more, but for that you get a very long history of dividend increases and the mechanisms an Investment Trust has to manage dividends more flexibly than simple trackers.

This portfolio has 10% holding in a UK property tracker. This gives exposure to the real estate sector, historically a good place to find income and inflation protection. Real estate doesn’t play very nicely with the daily liquidity requirements of an ETF so there is some risk here, though iShares have a good track record of managing that risk.

The bond portion of this portfolio is invested half into UK inflation-linked government bonds, and half into USA high yield corporate bonds.

This portfolio should generate a yield of over 3%. 50% of the portfolio is invested in holdings which should, in almost all circumstances, increase their income every year. There is good inflation protection as well as some exposure to global companies.