Investment manager Thomas Mench has built a basic portfolio of 
exchange-traded funds that he says is suitable for investors aged 35 to 55 
who are willing to take moderate risks. It embraces the largest U.S. companies 
plus representation in Europe, Asia, and Latin America. He overweights some 
industries by adding funds. Assuming $500,000 to invest, $48,000 would go into 
each of the model's 10 ETFs, with $20,000 left earlier in cash. A version of 
this portfolio gained 23.8% last year after fees.

                        TICKER    SHARES      PRICE
U.S. DIVERSIFIED
S&P 500                  SPY       320        15 17/16
S&P MIDCAP 400           MDY       530        90

U.S. SECTORS
S&P CONSUMER SERVICES    XLV       1560       30 49/64
S&P ENERGY               XLE       1660       28 55/64
S&P FINANCIAL            XLF       2000       24
S&P INDUSTRIAL           XLI       1620       29 37/64
S&P TECHNOLOGY           XLK       790        60 9/16

FOREIGN
WEBS GERMANY             EWG       1810       26 9/16
WEBS JAPAN               EWJ       3010       15 15/16
WEBS MEXICO              EWW       2530       19


DATA: MENCH FINANCIAL, BLOOMBERG FINANCIAL MARKETS