Vanguard Mutual Funds

 

This portfolio started with $10,000 on December 31, 2010. It provides asset class diversification using 11 Vanguard mutual funds. The portfolio includes US and foreign equities; large, medium, and small capitalization stocks; and U.S. REIT. The portfolio has a value bias.

The only limitation in using this portfolio is Vanguard $3,000 minimum per fund.

Link to spreadsheet at Google Docs.

U.S. Equity Component. Here is how the asset allocation breaks down by size and style (growth, neutral, and value) for the US equity component. The market capitalization is: large cap 33%, mid-cap 33%, and small cap 33%. The style weightings: value 41%, neutral or blend 36%, and growth 22%. Thus, the U.S. equity component leans toward value with weighting equally distributed between market caps.

International Component. The international stocks have a larg-cap, value bias. They include: large cap 72%, mid-cap 19%, and small cap 7%. The styles are: value 41%, neutral or blend 29%, and growth 28%.

Using Vanguard data, the geographic coverage of the international component is Europe 51.1%, Asia, 25.9%, Emerging Markets 34.1%, and North America 6.2%. Morningstar X-ray shows the geographic coverage as: U.S. & Canada 4.16%, Europe 42.23%, Japan 13.24%, Latin America 7.07%, and Asia & Australia 26.32%.

Note: Morningstar X-ray data is from February 2011.

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