Some time ago I had written about using a portfolio of ETFs. In that post I had recommended a specific set of portfolios originally suggested by Burton Malkiel. So how did these portfolios do in 2007? Not too bad, it turns out:
- Conservative portfolio: 3.2%
- Moderately conservative: 5.2%
- Moderately aggressive: 7.7%
- Aggressive portfolio: 10.6%
For comparison, the S&P 500 returned 5.5% in 2007.
The details of the returns in the various components of the portfolios can be found here. Some noteworthy points:
- Emerging markets (VWO) did particularly well last year, returning 37.3%.
- REITs (VNQ) crashed horribly, returning -16.5%. This is presumably related to real estate woes led by the sub-prime crisis.
- Surprisingly (to me at least), Treasury Inflation-Protected bonds (TIP) did remarkably well, returning 11.9%.