Published: July 10, 2013
Our recent article "3 Portfolios Inspired By Graham, Swensen, Browne" elicited the suggestion that we compare a do-it-yourself ETF portfolio of 60% stocks and 40% bonds to Vanguard's Balanced Fund (MUTF:VBIAX). That also made us think about the other balanced funds from the leading fund companies.
Specifically, here are the two questions we want to answer:
1. Which "balanced fund" has the best risk-adjusted returns?
2. Can I do better creating my own balanced ETF portfolio using 60% stocks (NYSEARCA:VTI) and 40% bonds (NASDAQ:BND)?
Choosing the Portfolios
First, we identified balanced funds from the major fund companies. Here's the list with each ticker and annual expense according to the prospectus.
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