Originally Posted by utrecht
I have 12 funds. Mostly index funds but also a few actively managed funds
(3) Large cap funds
Vanguard Total Stock Market Index
(1) Mid Cap Fund
Fidelity Low Priced Stock
(1) Small Cap Fund
Vanguard Small Cap Index
(1) Health Care Fund
Vanguard Health Care Index
(1) Energy fund
Vanguard Energy Index
(1) Real Estate Fund
Vanguard Real Estate Index
(1) Emerging Markets Fund
Vanguard Emerging Markets Index
(2) Emerging Markets Bond Funds
Fidelity New Market Bond Fund
TCW Emerging Markets Bond
(1) Bond Fund
TCW Total Return Fund
Im at 60/40 with a total expense ratio of 0.43%
This mix has beaten Vanguard Wellington over the past 3, 5,and 10 years but with a tad more volatility. I use Wellington as my total benchmark since its a very good 60/40 fund.
At one point I thought this many funds might be excessive but then I did a back test of this portfolio to get the 10 year return for these 13 funds with the correct percentages. I included withdrawing 4% plus inflation every year. The back test resulted in a 8.1% return over the past 10 years. I did another back test but this time with rebalancing every year. This backtest resulted in an 8.8% return. After 10 years the rebalanced portfolio had 10% more money. If I had many less funds there would be alot less opportunities to rebalance between funds so Im leaving my portfolio as is.
I own everything but the bond and EM funds you list here...with the exception of Contra, but I own APPL and UNP and a few others that I would consider make up my own "contra".
My expense ration is only .09 however which is odd but I think the main difference being 25% of my AA is in stocks at the moment with a total of 15funds. I am still in the accumulation stage of my wealth.
after this last dip S&P has barely got me beat this year. Energy has hurt me. Thinking of buying into EM again perhaps after Greece thing calms.