Model Fund Portfolio Update: No Complaints for 2005

    by James B. Cloonan

    Model Fund Portfolio Update: No Complaints For 2005 Splash image

    It was not a great year for the stock market in general. But when a poor year still has positive returns, we can’t complain too much—especially if you can outperform the market.

    Figure 1.
    Actual Portfolio
    vs. Benchmarks
    CLICK ON IMAGE TO
    SEE FULL SIZE.
    In 2005, The Model Fund Portfolio did just that, turning in 5.4% compared to 4.8% for the S&P 500. And it accomplished this feat at a lower level of risk.

    Figure 1 shows the results of the Actual Fund Portfolio compared to the S&P 500 (represented by the Vanguard 500 Index Fund [VFINX]) and the small-cap Russell 2000 (represented by the Vanguard Small Cap Index Fund [NAESX]). The performance of the individual funds on both an absolute and a risk-adjusted basis can be seen in Table 1.

    Figure 2.
    Recommended Fund Portfolio
    vs. Benchmarks
    CLICK ON IMAGE TO
    SEE FULL SIZE.

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