• AAII Model Portfolios
  • REITs and Frontier Markets Drive Model Fund Portfolio Higher

    by James B. Cloonan

    The stock market continues to vacillate after its spectacular run in 2013.

    But January’s pullback has been reversed over the last two months. Year-to-date through March 31, 2014, the Model Fund Portfolio is up 3.4% and the alternative All-ETF Portfolio is up 3.5%. These compare to a positive 1.8% for the S&P 500 index as measured by the Vanguard S&P Index fund (VFINX).

    Results for the Model Fund Portfolio over longer terms can be viewed in Figure 1 and Tables 1 and 2. Performance for the All-ETF Portfolio is shown in Table 3.

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    Discussion

    ALLAN KANE from ILLINOIS posted over 2 years ago:

    TOO MUCH TO READ. CAN YOU SUMMARIZE IT? THANK YOU.


    Allen Keiser from MD posted over 2 years ago:

    In February 2014 I invested $75,000. in the Model Shadow Stock Portfolio. As of today I am down over $4000. Over 5%. How long can you hang on? Allen


    S Shah from TX posted over 2 years ago:

    I would like to create Model Shadow Portfolio. Where can I find MF & ETF combined portfolio allocation percentages.

    Would be helpful if you can list purchase price and purchase date for model shadow portfolio holdings.

    Allen Keiser experience that he lost 5% since investing Feb 2014 suggests Jan was excellent month for MSP and Feb & March were down months.

    Shah


    S Shah from TX posted over 2 years ago:

    I would like to create Model Shadow Portfolio. Where can I find MF & ETF combined portfolio allocation percentages.

    Would be helpful if you can list purchase price and purchase date for model shadow portfolio holdings.

    Allen Keiser experience that he lost 5% since investing Feb 2014 suggests Jan was excellent month for MSP and Feb & March were down months.

    Shah


    Doug from NY posted over 2 years ago:

    S Shaw wrote:
    Would be helpful if you can list purchase price and purchase date for model shadow portfolio holdings.

    For the actual stock portfolio, it's at
    http://www.aaii.com/model-portfolios/stock-transaction-history-detailed

    (found via
    Model Portfolios:Model Shadow Stock Portfolio:Transaction History:To view a detailed version of the transaction history, click here)


    Jim Grant from OH posted over 2 years ago:

    When I look over the Model Fund Portfolio, I always have a couple reactions:

    (1) Why go to the trouble to construct and use such a portfolio? - - - The Annual Return figures for the portfolio are not materially different (and not clearly better)than the Vanguard 500 Index MF(VFINX). Nor is the risk (variability) as seen by the Standard Deviation statistic materially different (and definitely not better than).

    (2) The inclusion of funds with so many different characteristics (large-cap, mid-cap, small cap, capital, income, pure value, REITs) comes off as "I am going to spread my money around, because I really have no idea what funds might perform better."

    (3) The performance table masks the fact that each of the funds experienced a drawdown of 35%-65% during the financial crisis that started in late 2008. How many people would use such a portfolio if then knew that going in?

    OK, someone must have asked to see a Model Fund Portfolio. Now we have one, but why should an investor go to the trouble to construct one?


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