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Saturday, January 1, 2011

2010 Performance - BlackRock Diversified Portfolio

In past posts, we've looked at the BlackRock chart that covers performance over a 20-year period. The performance shown is for 7 asset classes and ranks performance from top to bottom for each of the 20 years.

It also shows returns for a diversified portfolio, which is something I really like about BlackRock's table. Although the diversified portfolio never is among the top 2 performers, it has excellent performance over the long term. In my opinion, this type of chart is extremely useful in pinning down risk tolerance.

The table below shows a quick estimate of of the diversified portfolio's return for the various sectors represented. For the weights assumed in the table, the return was +13.25% for the year. It is worth noting that this portfolio could be set up in 20 minutes on Monday morning, requires very little maintenance and monitoring, and historically has outperformed much higher cost professional managers over the long term.

Performance numbers obtained from Morningstar.



  1. Great example of diversification and passive investing! Investing needn't be hard.

  2. re: MoneyCone It hasn't always been so. I should point out that for my clients I diversify the fixed income sector by breaking up the AGG to 15% of total assets and then using 5% high yield, trust preferreds, global bond etc. positions.
    Also, I allow people I work with to take up to 20% of their investable assets and do what they want - many buy individual stocks, invest in commodities, go to Vegas - whatever.
    The key of course is to get the stock/bond allocation right in terms of being able to live with it in up and down markets.

  3. Yes, successful investing can be this simple.

  4. This is exactly the return I had in my RRSP account (balanced index funds). Not a bad return if you ask me since no effort was involved!