 |
|
Model Portfolios - Summary of
all Models
| 1973-1997
Models |
Annual
Return
(%)
|
Annual
Risk
(%)
|
| 25%
Stocks |
|
Growth
& Value, 50% U.S.
|
11.5
|
7.6
|
|
Value-Only,
50% U.S.
|
12.0
|
7.7
|
|
Growth
& Value, 60% U.S.
|
11.5
|
7.6
|
|
Value-Only,
60% U.S.
|
12.0
|
7.7
|
|
Growth
& Value, 70% U.S.
|
11.5
|
7.6
|
|
Value-Only,
70% U.S.
|
12.0
|
7.7
|
|
25%
S&P, 75% LB G/C
|
10.3
|
9.0
|
| 50%
Stocks |
|
|
|
Growth
& Value, 50% U.S.
|
12.9
|
10.2
|
|
Value-Only,
50% U.S.
|
14.0
|
10.5
|
|
Growth
& Value, 60% U.S.
|
13.0
|
10.0
|
|
Value-Only,
60% U.S.
|
14.0
|
10.3
|
|
Growth
& Value, 70% U.S.
|
13.1
|
10.0
|
|
Value-Only,
70% U.S.
|
14.0
|
10.2
|
|
50%
S&P, 50% LB G/C
|
11.3
|
11.2
|
| 65%
Stocks |
|
|
|
Growth
& Value, 50% U.S.
|
13.7
|
12.2
|
|
Value-Only,
50% U.S.
|
15.1
|
12.6
|
|
Growth
& Value, 60% U.S.
|
13.8
|
12.1
|
|
Value-Only,
60% U.S.
|
15.1
|
12.3
|
|
Growth
& Value, 70% U.S.
|
13.9
|
12.1
|
|
Value-Only,
70% U.S.
|
15.1
|
12.2
|
|
65%
S&P, 35% LB G/C
|
11.9
|
12.8
|
| 75%
Stocks |
|
|
|
Growth
& Value, 50% U.S.
|
14.1
|
13.8
|
|
Value-Only,
50% U.S.
|
15.8
|
14.2
|
|
Growth
& Value, 60% U.S.
|
14.3
|
13.5
|
|
Value-Only,
60% U.S.
|
15.8
|
13.8
|
|
Growth
& Value, 70% U.S.
|
14.4
|
13.5
|
|
Value-Only,
70% U.S.
|
15.9
|
13.6
|
|
75%
S&P, 25% LB G/C
|
12.3
|
14.0
|
| 100%
Stocks |
|
|
|
Growth
& Value, 50% U.S.
|
15.2
|
17.7
|
|
Value-Only,
50% U.S.
|
17.4
|
18.1
|
|
Growth
& Value, 60% U.S.
|
15.4
|
17.4
|
|
Value-Only,
60% U.S.
|
17.5
|
17.6
|
|
Growth
& Value, 70% U.S.
|
15.6
|
17.3
|
|
Value-Only,
70% U.S.
|
17.5
|
17.4
|
|
100%
S&P, 0% LB G/C
|
13.1
|
17.1
|
* Standard deviation
of annual returns
Due
to longer returns series back to 1973, the DFA Five-Year
Government Bond index was used as a proxy for Global
Fixed Income and the Morgan Stanley EAFE index was
used for 1973 and 1974 as a proxy for International
Large Value Stocks.
By law,
advisors must state something like the following:
"Past performance is no guarantee of future
returns. This is especially true of model portfolios,
which are not subject to specific economic and market
factors."
We'll
be more blunt: If you think you will realize these
same returns over the next 25 years, especially factoring
in advisor fees, fund expenses, and transaction costs,
you may have an unpleasant surprise coming!
Enjoy!
Index Funds Staff
©1999 IndexFunds.com
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