Portfolio a alokace
Core and Satellites in Practice: Concrete Portfolio Examples
Key takeaways
- The core makes up 70–90% of the portfolio in low-cost index ETFs — the foundation of returns and stability.
- Satellites are smaller, targeted positions to gain specific exposure or returns above the index.
- Satellites can be sector, factor, geographic, or dividend ETFs — but always with a clear rationale.
- The larger the satellite portion, the more the portfolio depends on making the right choices, increasing the risk of underperforming the index.
- For most investors, the optimal setup is a core of 80–90% and satellites of no more than 10–20%.
The core-satellite strategy is a portfolio-construction approach where a large portion — the core — consists of passive, low-cost index ETFs, and a smaller portion — the satellites — targets specific exposures or opportunities.
Why Core-Satellite?
A purely passive portfolio works excellently and beats most active managers. But some investors want additional exposure — more dividend stocks, a value factor, a specific region or sector. The core-satellite strategy makes this possible without jeopardizing the core return. A deeper look at the passive vs. active choice is in this overview.
Core Composition
The core should constitute at least 70%, ideally 80–90% of the total portfolio. Suitable options include:
- Global equity ETF — MSCI World or All-World — the foundation of the equity component
- Bond ETF — the foundation of the defensive component
- Optionally, an emerging markets ETF as a second equity component
Satellite Examples
Satellites make up 10–30% of the portfolio and have a clear investment rationale:
- Dividend ETF — for investors seeking regular income; more in the article on dividend aristocrats
- Value ETF — exposure to the value factor beyond market-cap weighting
- Sector ETF — healthcare, energy, technology as a targeted bet
- Gold ETC — insurance and a low-correlation diversifier
What About Costs?
Satellite ETFs typically carry higher TERs than broad index funds. That is why it is important to track the average cost of the entire portfolio, not just the core. A sector ETF with a TER of 0.5–0.6% is acceptable as a 10% satellite, but would be expensive as 50% of the portfolio. A full view of sensible diversification is provided by the article How to Diversify Without Over-Diversifying.
FAQ
What is the core in a core-satellite strategy?
The core is the main part of the portfolio — typically 70–90% — consisting of low-cost, broad index ETFs. The foundation of returns and diversification. Satellites are smaller supplementary positions with targeted exposure.
Which satellites make sense?
Satellites should have a clear rationale: they should bring exposure that the core does not include — dividends, a specific sector, a value factor, or a geographic region. A satellite without a clear purpose is just an unnecessary cost.
How much should go into satellites?
For most passive investors, no more than 10–20%. The larger the satellite portion, the more results depend on making the right choices — and the greater the risk of underperforming the market.