Similar so-called periodic tables of investment returns are produced by others, but the BlackRock table is unique in its inclusion of a diversified portfolio. The diversified portfolio is an excellent benchmark for many DIY investors. It is comprised of low-cost, indexed exchange traded funds, as shown below. The 20-year annualized return of the portfolio was 8.89% for the 20-year period ended 12/31/2010.
The table shows how the return on the diversified portfolio has been much less volatile than individual sectors. The table also shows the futility of predicting sector performance: the best-performing sectors many times are the worst-performing sectors in ensuing years. Overall, the table is an excellent starting point for the all-important subject of risk management and asset allocation.
The updated performance of the components of the BlackRock Standard Diversified Portfolio over the first 9 months of calendar year 2011 is shown in the table: CLICK TABLE TO ENLARGE
|Data Source: Morningstar|
Disclosure: The data shown here is for educational purposes only. No recommendations are made. Individual investors should do their own research and/or consult with a professional advisor. Although data has been obtained from reliable sources, its accuracy cannot be guaranteed. I am not affiliated with BlackRock or Morningstar.