The Late Thirties to Early Forties Portfolio was developed by Burton Malkiel.
Burton Malkiel is the Chemical Bank Chairman’s Professor of Economics at Princeton University, an author, and former member of the Council of Economic Advisors.
The Late Thirties to Early Forties Portfolio was profiled in his best selling book A Random Walk Down Wallstreet.
The portfolio holds 70% in equities, 15% in bonds, 5% in cash, and 10% in REITs.
Weight | Ticker | ETF Name | Sector | |
|---|---|---|---|---|
33% | VTI | Vanguard Total Stock Market ETF | Equity, U.S., Large Cap | |
16% | EFA | iShares MSCI EAFE ETF | Equity, Inter. Developed, Large Cap | |
16% | EEM | iShares MSCI Emerging Markets ETF | Equity, Emerging Markets, Large Cap | |
10% | VNQ | Vanguard Real Estate Index Fund ETF | Real Estate, U.S. | |
5% | LQD | iShares iBoxx $ Investment Grade Corporate Bond ETF | Bond, U.S., All-Term | |
5% | BNDX | Vanguard Total International Bond ETF | Bond, International, All-Term | |
5% | VIG | Vanguard Dividend Appreciation ETF | Equity, U.S., Large Cap, Dividend | |
5% | TIP | iShares TIPS Bond ETF | Bond, U.S., All-Term | |
5% | BIL | SPDR Blmbg Barclays 1-3 Month T-Bill ETF | Bond, U.S., Ultra Short-Term |
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Low | Average | High | |
|---|---|---|---|
1-Year | -39.6% | 7.9% | 56.6% |
3-Year | -11.4% | 7.4% | 23.7% |
5-Year | -2.4% | 7.1% | 18.7% |
10-Year | 1.9% | 7.3% | 12.3% |
Portfolio | 60/40 | S&P 500 | |
|---|---|---|---|
Annual Return | 7.2% | 9.3% | 10.3% |
10Y Annual Return | 6.7% | 7.9% | 12.2% |
Sharpe Ratio | 0.46 | 0.51 | 0.43 |
Max Drawdown | -46.8% | -29.7% | -50.97% |
Volatility (annualized) | 12.7% | 9.9% | 15.4% |
Dot Com Annual Return | -5.9% | -4.2% | -14.60% |
Great Financial Crisis Annual Return | -1.0% | -0.3% | -5.66% |
Positive Periods | 62.7% | 65.8% | 63.3% |
**S&P 500 backtest to 1972 and 60/40 backtest to 1970
