Low-Cost Expert Investment Portfolio (Burton Malkiel)

This recommended investment portfolio is one of 20+ mutual fund portfolios that we've assembled for investors with different time horizons and risk-tolerance levels to consider. Visit our Portfolio Finder to see them all.

 
View Another Investment Portfolio:

 

Low-Cost Expert Investment Portfolio (Burton Malkiel)

For investors seeking good returns from accessible, low-cost funds
 80% Stocks |  20% Bonds | 


 Data through August 31, 2016

FUND NAME SYMBOL % OF
PORTFOLIO
YTD
RETURN
1-YR
RETURN
3-YR
RETURN
5-YR
RETURN
10-YR
RETURN
MAX LOAD EXPENSE RATIO
StockMatthews India InvMINDX10%8.66%9.98%31.29%10.55%10.95%none%1.11%
StockVanguard Capital Opportunity Inv**VHCOX104.618.9113.1516.959.6none0.45
BondVanguard Total Bond Market Index ETFBND206.026.164.363.2none0.06
StockVanguard FTSE All-World ex-US ETFVEU205.213.612.643.66none0.13
StockVanguard Total Stock Market ETFVTI208.0311.4211.6914.437.75none0.05
StockVanguard Emerging Markets ETFVWO1014.7410.652.08-0.43.85none0.15
StockTempleton DragonTDF10none
   1006.657.198.46.984 0.23
** Closed to new investors. # Closed to new investors; other share classes are available.
r Maximum redemption fee charged when you sell shares. s Front-end load; redemption fee may apply.
— Fund has not existed for the specified time. Source: Morningstar, Inc..

We asked Princeton professor Burton Malkiel to suggest simple, low-cost portfolios that relied heavily to exclusively on index funds. The idea was to show that you don't have to use fancy investments to earn a good return. The results are in, and Malkiel has thumped the market. From the beginning of the simple-portfolios project on January 1, 2009, through February 28, 2010, his portfolio advanced 40% -- well ahead of the 26% return of Standard & Poor's 500-stock index for that period.

A healthy allotment to foreign stocks, particularly those from emerging markets, helped goose Malkiel's gains. China and India, in his view, are likely to remain among the worlds fastest-growing economies.