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 http://www.rwinvestmentstrategies.com. 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.

Saturday, October 1, 2011

2011 Year-to-Date Performance - BlackRock Standard Diversified Portfolio

One of the most useful research pieces available for DIY investors, I believe, is the "Asset Class Returns: A 20-Year Snapshot" table produced by BlackRock and discussed at Cedar Financial Advisors.  It shows annual asset class returns, color-coded, on a ranked basis so that investors can easily see the best-performing and worst-performing sectors for each year.

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
The overall portfolio has achieved a return of -5.14% over the first 9 months of 2011, at an expense of approximately 0.11%.




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.  

4 comments:

  1. A 5% return (with low expenses) in this market is certainly nothing to dismiss.

    ReplyDelete
  2. re: Shawn That's a -5.14% return. I had a typo. Thanks for commenting, I wouldn't have caught it otherwise!

    ReplyDelete
  3. A diversified portfolio doesn't participate in the the highs or the lows and keeps the right balance between risky and rewarding times!

    That is an excellent link!

    ReplyDelete
  4. -5% is not bad for all the craziness of the markets right now.

    ReplyDelete