How To Beat 5 Global Asset Managers Using An ETF Portfolio

Published: December 20, 2016

Summary

 

Here's the question we wanted answered: "Can we find a do-it-yourself ETF portfolio recipe that beats some of the leading asset managers?".

 

So we graphed the risk vs. return profile (over the past 10 years) for five leading asset managers.

 

The five chosen managers/firms are Ivy Asset Management (Ben Inker), GMO, Leuthold, UBS, and BlackRock.

 

We used an Asset Allocation Fund from each manager to represent their performance.

 

We found 46 Portfolio Recipes that beat all the managers by generating higher return with less risk.

 

"There are tons of people who are late to trends... They exist in mutual funds. They exist in clothes. They exist in cars. They exist in lifestyles."

- Jim Cramer

 

Buying an asset allocation mutual fund is one way to counter the market's volatility. By purchasing a single fund, you get a diversified portfolio that avoids putting everything in one basket. This approach sounds like a plausible plan for tapping the expertise of fund managers to diversify your portfolio. But the statistics show that many of these fund managers are the "late to trends" kind of people in the Jim Cramer quote above.


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