The 7Twelve portfolio can be built with a large variety of mutual funds and Exchange-traded Funds (ETFs). The funds that one selects as one builds one's version of the 7Twelve portfolio is entirely up to one. This technique produces a very reliable proxy performance history. ETFs are index funds. All ETFs mimic a selected index, so the underlying index represents the return of the actual ETF, minus the expense ratio of the operational ETF. In some cases, the ETF selected had a 10-year history so the proxy technique was not needed. If it is chosen to build the 7Twelve portfolio using actively managed funds, the performance can, and will, be different from the ETF-based performance. This does not mean that an “active” 7Twelve should not be built; it simply means that it will have performance characteristics that are different from an ETF-based 7Twelve. Exchange-traded notes are similar to ETFs but they do expose the investor to default risk of the issuer of the note.