Re: ETF Portfolios Performance from MorningStar.................
MorningStar has a lengthy PDF report that looks at companies that build and manage portfolios of ETFs for clients. They have several different divisions from which one can sort out investment objectives.
Since there are quite a few of us here who do build portfolios out of ETFs I thought there would be interest in how the pros are doing compared to us. Here's some info for your digestion (or indigestion) from the Q3 report ending last September:
thru 9/16 3-Yr 5-Yr 10-Yr
Global All-Asset Median 6.67 4.48 7.25 5.67
Hybrid Median 6.55 4.24 7.70 5.40
Strategic Median 7.14 4.57 6.85 5.46
Tactical Median 5.74 4.63 6.13 6.05
Our AIM methodology would put us in the "Hybrid" area. "Strategic" generally indicates changes in structure of the portfolios over time while Tactical means jumping on what's hottest. Hybrid seems to be a little of strategic and a bit of tactical.
Here's performance of other groups:
thru 9/16 3-Yr 5-Yr 10-Yr
Global Balanced Median 6.89 4.61 7.31 5.23
Hybrid Median 6.86 4.71 7.23 4.77
Strategic Median 6.97 4.50 7.44 5.48
Tactical Median 5.90 4.52 6.52 6.35
Global-Equity Median 7.05 5.58 9.95 4.97
Hybrid Median 6.43 5.26 9.87 4.57
Strategic Median 7.87 6.08 10.39 5.27
Tactical Median 5.47 5.08 9.85 5.25
Global Fixed-Income Median 6.14 3.55 4.60 5.23
Hybrid Median 5.56 3.47 4.22 —
Strategic Median 6.32 4.26 4.67 5.23
Tactical Median 5.24 3.29 3.91 5.22
International-Equity Median 4.81 0.91 5.22 3.84
Hybrid Median — — — —
Strategic Median ` 5.43 1.38 5.68 2.62
Tactical Median 4.30 0.77 4.49 4.16
United States Balanced Median 7.08 4.89 7.72 5.90
Hybrid Median 7.26 4.61 8.44 5.99
Strategic Median 7.11 5.24 7.62 5.36
Tactical Median 5.91 3.07 5.71 6.49
United States Equity Median 6.56 6.15 11.22 6.41
Hybrid Median 5.41 5.08 10.96 5.91
Strategic Median 7.25 10.18 12.77 7.69
Tactical Median 6.01 5.88 11.25 6.61
thru 9/16 3-Yr 5-Yr 10-Yr
United States Fixed-Income Median 6.47 3.89 4.44 4.84
Hybrid Median 6.77 3.93 4.79 4.94
Strategic Median 5.54 3.83 4.05 4.42
Tactical Median 7.49 3.92 4.49 9.85
Global Balanced would be similar to our "Ultimate Buy and AIM" strategy that some of us use. You can probably find one of these classifications that matches your overall structure.
Global and international equity strategies along with their income equals didn't do as well in most time frames as US Equities and Balanced strategies. So much for looking backward! I don't know how to guess what might be best over the next 3-10 years.
So, if you're looking for some benchmarks, these might help. Sorry they've not updated it through the end of 2016, but I don't know how often they publish.
