Index Asset Allocation
PIE-DFA 10 Sample Portfolio | PIE-DFA 26 Sample Portfolio | PIE-DFA 42 Sample Portfolio | PIE-DFA 75 Sample Portfolio
Observations
| Sample Asset Classes | 1 yr. return March 2010 |
10 yr. return March 2010 |
20 yr. return March 2010 |
|---|---|---|---|
| Canadian Large | 37.4% | 4.4% | 9.28% |
| Canadian Small | 80.1 | 9.3 | 10.1 |
| Canadian Value | 59.4 | 11.2 | 12.0 |
| US Large | 20.6 | -1.6 | 10.6 |
| US Small | 31.1 | -0.2 | 10.9 |
| US Value | 24.4 | -0.1 | 11.7 |
| International Large | 24.4 | -2.3 | 9.3 |
| International Small | 36.9 | 2.7 | 4.6 |
| International Value | 27.9 | 0.1 | 12.6 |
| Emerging Markets | 45.6 | 5.9 | 12.4 |
| Resources | 20.6 | 12.5 | 10.4 |
| Precious Metals | 46.9 | 20.7 | 10.4 |
| Global REITS | 49.5 | 6.2 | 6.9 |
| Canadian Short Term | 3.3 | 5.6 | 8.9 |
| Canadian Bonds | 5.1 | 6.5 | 9.9 |
| Inflation Bonds | 10.5 | 6.6 | 7.9 |
| Global Bonds | 2.2 | 4.7 | 5.5 |
Canadian equity value outperformed Canadian equity large cap by almost 2% over the twenty year period.
International equity value outperformed International equity large cap by more than 2% over the twenty year period.
Canadian bonds did as well as Canadian large equity and International large equity over the twenty year period and only slightly less than US large equity.
A difference of 1.5% to 2.0% over a twenty year period is worth thousands of dollars, plus the right comination and proper rebalancing will also increase returns while lowering the risk of a properly constructed index portfolio.
*Data from DFA and Paltrack sources.
SAMPLE PORTFOLIO - PIE - DFA 10
Index Funds
| DFA Index Funds | PIE Index Funds | Powershares Index Funds |
|---|---|---|
| Corporate Bond | Income | Corporate Bond |
| Global Fixed Income | Canadian | Real return Bond |
| Canadian core | USA | Canadian |
| US Vector (H) | International | Dividend |
| Int'l Vector (H) | Emerging | USA |
| Real Estate | Alternative | International |
| Emerging | ||
| Gold & Precious Metal |
Structuring a portfolio around compensated risk factors can change priorities in the investment process. The focus shifts from returns-chasing (through stockpicking or market timing) to diversification across multiple asset classes in a portfolio.
SAMPLE PORTFOLIO - PIE - DFA 26
Index Funds
| DFA Index Funds | PIE Index Funds | Powershares Index Funds |
|---|---|---|
| Corporate Bond | Income | Corporate Bond |
| Global Fixed Income | Canadian | Real return Bond |
| Canadian core | USA | Canadian |
| US Vector (H) | International | Dividend |
| Int'l Vector (H) | Emerging | USA |
| Real Estate | Alternative | International |
| Emerging | ||
| Gold & Precious Metal |
Structuring a portfolio around compensated risk factors can change priorities in the investment process. The focus shifts from returns-chasing (through stockpicking or market timing) to diversification across multiple asset classes in a portfolio.
SAMPLE PORTFOLIO - PIE - DFA 42
Index Funds
| DFA Index Funds | PIE Index Funds | Powershares Index Funds |
|---|---|---|
| Corporate Bond | Income | Corporate Bond |
| Global Fixed Income | Canadian | Real return Bond |
| Canadian core | USA | Canadian |
| US Vector (H) | International | Dividend |
| Int'l Vector (H) | Emerging | USA |
| Real Estate | Alternative | International |
| Emerging | ||
| Gold & Precious Metal |
Structuring a portfolio around compensated risk factors can change priorities in the investment process. The focus shifts from returns-chasing (through stockpicking or market timing) to diversification across multiple asset classes in a portfolio.
SAMPLE PORTFOLIO - PIE - DFA 75
Index Funds
| DFA Index Funds | PIE Index Funds | Powershares Index Funds |
|---|---|---|
| Corporate Bond | Income | Corporate Bond |
| Global Fixed Income | Canadian | Real return Bond |
| Canadian core | USA | Canadian |
| US Vector (H) | International | Dividend |
| Int'l Vector (H) | Emerging | USA |
| Real Estate | Alternative | International |
| Emerging | ||
| Gold & Precious Metal |
Structuring a portfolio around compensated risk factors can change priorities in the investment process. The focus shifts from returns-chasing (through stockpicking or market timing) to diversification across multiple asset classes in a portfolio.
*Annualized number is presented as an approximation by multiplying the monthly or quarterly number by the square root of the number of periods in a year. Please note that the number computed from annual data may differ materially from this data.