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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.  


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

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

  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!

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