« More on Social Security - How I See It | Main | How Does Your Bonus Compare With These? »
‘Lazy Portfolios’ Beat the S&P 500 Again!
By JLP | January 20, 2007
IMPORTANT NOTE: You’ll probably notice that only one of the portfolios listed below actually outperformed the S&P 500 in 2006. The title for the post is based on the total return for the portfolios over the last 5 years. Over the last 5 years the lazy portfolios beat the S&P 500 hands down. To see the results over the last five years, click here.
Paul Ferrell over at MarketWatch wrote an article profiling five ‘Lazy Portfolios,’ which are portfolios created for both simplicity and low cost. The purpose of the lazy portfolios is to give investors a well-rounded portfolio with as little work as possible. All of the portfolios use Vanguard funds (no exchange-traded funds). Anyway, here are the results for 2006:
|
|
|||
|
11 Funds |
|||
|
Fund |
Ticker |
Allo- |
2006 |
|
Vanguard 500 Index |
15.00% |
15.64% |
|
|
Vanguard Emerging Markets Stock Index |
20.00% |
29.07% |
|
|
Vanguard European Stock Index |
5.00% |
33.12% |
|
|
Vanguard Extended Market Index |
10.00% |
14.27% |
|
|
Vanguard High-Yield Corporate |
5.00% |
8.24% |
|
|
Vanguard Inflation-Protected Securities |
10.00% |
.43% |
|
|
Vanguard Long-Term U.S. Treasury |
5.00% |
1.74% |
|
|
Vanguard Pacific Stock Index |
15.00% |
11.81% |
|
|
Vanguard Small Cap Growth |
5.00% |
11.95% |
|
|
Vanguard Small Cap Value Index |
5.00% |
19.24% |
|
|
Vanguard Total Stock Market Index |
5.00% |
15.51% |
|
|
Total Portfolio Return |
15.89% |
||
|
S&P 500 Index |
15.79% |
||
I don’t quite understand why the Aronson portfolio has so many funds. With the diversity presented, it seems like the Total Market Index fund is unnecessary.
|
|
|||
|
9 Funds |
|||
|
Fund |
Ticker |
Allo- |
2006 |
|
Vanguard Emerging Markets Stock Index |
5.00% |
29.07% |
|
|
Vanguard European Stock Index |
5.00% |
33.12% |
|
|
Vanguard Pacific Stock Index |
5.00% |
11.81% |
|
|
Vanguard REIT Index |
5.00% |
35.07% |
|
|
Vanguard Short-Term Investment Grade Index |
40.00% |
4.99% |
|
|
Vanguard Small Cap Index |
5.00% |
15.66% |
|
|
Vanguard Small Cap Value Index |
10.00% |
19.24% |
|
|
Vanguard Total Stock Market Index |
15.00% |
15.51% |
|
|
Vanguard Value Index |
10.00% |
22.15% |
|
|
Total Portfolio Return |
14.70% |
||
|
S&P 500 Index |
15.79% |
||
|
|
|||
|
7 Funds |
|||
|
Fund |
Ticker |
Allo- |
2006 |
|
Vanguard 500 Index |
10.00% |
15.64% |
|
|
Vanguard REIT Index |
10.00% |
35.07% |
|
|
Vanguard Small Cap Index |
10.00% |
15.66% |
|
|
Vanguard Small Cap Value Index |
10.00% |
19.24% |
|
|
Vanguard Total Bond Market Index |
40.00% |
4.27% |
|
|
Vanguard Total International Stock Index |
10.00% |
26.64% |
|
|
Vanguard Value Index |
10.00% |
22.15% |
|
|
Total Portfolio Return |
15.15% |
||
|
S&P 500 Index |
15.79% |
||
|
|
|||
|
5 Funds |
|||
|
Fund |
Ticker |
Allo- |
2006 |
|
Vanguard Inflation-Protected Securities |
15.00% |
.43% |
|
|
Vanguard REIT Index |
20.00% |
35.07% |
|
|
Vanguard Short-Term Treasury Index |
15.00% |
3.77% |
|
|
Vanguard Total International Stock Index |
20.00% |
26.64% |
|
|
Vanguard Total Stock Market Index |
30.00% |
15.51% |
|
|
Total Portfolio Return |
17.62% |
||
|
S&P 500 Index |
15.79% |
||
|
|
|||
|
3 Funds |
|||
|
Fund |
Ticker |
Allo- |
2006 |
|
Vanguard Inflation-Protected Securities |
33.30% |
.43% |
|
|
Vanguard Total International Stock Index |
33.30% |
26.64% |
|
|
Vanguard Total Stock Market Index |
33.30% |
15.51% |
|
|
Total Portfolio Return |
14.19% |
||
|
S&P 500 Index |
15.79% |
||
That’s it. For more information on the portfolios, read Paul Ferrell’s article.
Topics: Index Funds, Investing |
