How to construct an all-weather ETF portfolio

The outlook for markets is highly uncertain. This set of investments balances growth with protection in a crisis, says Cris Sholto Heaton

The long-standing rule of thumb for an investor who wants to balance the opportunity for growth with protection against the worst falls in the market is a 60/40 split between riskier assets and safer ones. This isn’t a panacea for all crises and there have been times when other combinations would have delivered a better trade-off between risk and return – but it’s worked well on average over many decades and it’s simple and intuitive, hence its continued popularity.

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Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.