Investment Help

If you are seeking investment help, look at the video here on my services. If you are seeking a different approach to managing your assets, you have landed at the right spot. I am a fee-only advisor registered in the State of Maryland, charge less than half the going rate for investment management, and seek to teach individuals how to manage their own assets using low-cost indexed exchange traded funds. Please call or email me if interested in further details. My website is at If you are new to investing, take a look at the "DIY Investor Newbie" posts here by typing "newbie" in the search box above to the left. These take you through the basics of what you need to know in getting started on doing your own investing.

Friday, April 1, 2011

2011 First Quarter Performance - BlackRock Diversified Portfolio Update

One of the most useful tools for individuals in analyzing and understanding long-term investment returns is the so-called periodic table of investment performance. The version produced by BlackRock includes a diversified portfolio comprised of growth stock and value stock ETFs as well as international stocks and fixed income.

The diversified portfolio result reveals the value of diversifying among sectors and indexed investing. The portfolio is easy to set up, can be easily adapted to fit different risk tolerances (by increasing the percent allocated to fixed income to reduce portfolio volatility), and can readily bring in different asset classes if desired.

DIY Investor updates the diversified portfolio at the end of each quarter. The last update was for the 12-month period ended 12/31/2010; this one is for the quarter ended 3/31/2011.

The quarterly results are shown in the table: CLICK TO ENLARGE. For the quarter, the Russell 2000 (IWM) performed the best, value stocks (IWD) came next, followed by growth stocks (IWD). International stocks (EFA) lagged domestic stocks, and the U.S. bond (AGG) was the poorest-performing sector.

The overall portfolio, weighted similar to that used by BlackRock, achieved a return of 4.02%. The alert reader will notice the low expense ratios for the ETFs.

The data was obtained from Morningstar. The information presented is solely for educational purposes. Individuals should do their own research or consult a professional advisor before making investments.

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