The following table shows the returns of various asset classes by year as represented by the Vanguard index fund for that specific sector ($VTSAX for Large Cap, etc). The \"You\" portfolio consists of the asset allocation that you can set below.
\n\n Sample portfolios (stocks/bonds):\n 100/0 |\n 80/20 |\n 60/40 |\n 40/60 |\n 20/80 |\n 0/100\n
\n\n Showing results for\n {{yearRange[1] - yearRange[0]}} year{{((yearRange[1] - yearRange[0]) > 1) ? 's' : '' }} from\n January 1, {{yearRange[0]}} - {{endRange}}.\n
\nNote: This is based on using the best index fund Vanguard offers for this market segment. For REIT and Emerging Markets this means switching from investor shares to admiral shares when they were offered. The goal of this is to demonstrate the importance of diversification in a portfolio, and how you with only a few funds you can drastically lower your risk while maintaining similar returns. These are NOT inflation adjusted numbers. Past returns are no guarentee of future returns, but you know that already right?
\nAverage yearly returns on the Y-axis and risk profile on the X-axis. The blue line is the recommended risk profile needed to get the desired rate of return.
\n\n Adam says: See the points above the line? Those are are sectors that are returning a better-than-expected return for their amount of risk. The points below the line are underperforming. These are best looked at over a long time horizon.\n
\nHere's a look at how each market sector has perfomed over the period from January 1, {{yearRange[0]}} - {{endRange}}.
\nSet date range
\n\n Adam says: You see how some sectors vary wildly year to year while others are relatively consistent? Try creating the most consistent portfolio with the fewest funds.\n
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