Core-satellite

Core-satellite — the portfolio architecture that gives both indexing and everything else a home. The core — the largest single allocation — is the boring, evidence-backed compounder (this course: an all-world UCITS fund, bought on schedule, never traded). Satellites are deliberate, sized deviations, each holding its seat only with a written purpose the core can’t serve: peso income at 10% final tax (dividends/REITs), stability and known maturities (MP2/ladder), capped asymmetric bets (the speculative sleeve). A satellite without a stated purpose is clutter with a ticker.

First used in: 2.6 · Portfolio construction