Mad Money Machine

by Paul Douglas Boyer

OK do it yourselfers, can Vanguard beat Indexfolio 100?

ravjim asked, and I hereby answer: how would the do-it-yourself portfolio from show 59 have stacked up against the lazy portfolios?

So, here’s the portfolio I constructed of Vanguard (and one Bridgeway) funds to try to match the IFA Indexfolio 100:

VFINX Vanguard 500 Index 12.00%
VIVAX Vanguard Value Index 12.00%
VISVX Vanguard Small Cap Value Index 20.00%
BRSIX Bridgeway Ultra-Small Company Market 20.00%
VGSIX Vanguard REIT Index 5.00%
VTRIX Vanguard International Value 9.00%
VINEX Vanguard International Explorer 9.00%
VEIEX Vanguard Emerging Mkts Stock Idx 13.00%

You can compare that against the IFA Indexfolio 100 to see how I tried to capture each asset class.

And here is how the performance compares:

YTD 1.5 Years Annualized 2.5 Years Annualized
Indexfolio 100 9.60% 21.57% 17.44%
Do-it-yourself Portfolio 7.63% 19.64% 16.54%

The conclusion must be that when you allow Index Funds Advisors to help you, you get a twofer: help, and better returns.

Sat, July 14 2007 » Blog

2 Responses

  1. ravjim July 15 2007 @ 3:03 pm

    Paul,

    Thank you! While I realize that IFA is a sponsor, some of us are lacking the $100,000 to invest. This helps me (and others I hope) to get to that amount faster.

    Jim

  2. houston_the_rocket July 17 2007 @ 9:09 am

    Hey Paul,

    The Vanguard International Explorer is closed to new investor. Is there a replacement for that?
    But anyway this portfolio is going to cost 60K to follow… What about an ETF alternatives? That would be great!

    Thanks
    Houston

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