Model Mutual Fund and EFT Portfolios: Choosing a Benchmark Isn’t Easy

Posted on July 23, 2012 | AAII Journal

Through March, the 2012 equity market has been a friendlier place than we have seen for a while.

The S&P 500 index was up 12.5%, as measured by the Vanguard S&P 500 Index fund (VFINX). This is somewhat better than our Model Mutual Fund Portfolio at 10.0% and our portfolio of exchange-traded funds (ETFs), the Model ETF Portfolio, at 10.9%. Tables 1 and 2 show the longer-term performance of the Model Mutual Fund Portfolio, and Tables 3 and 4 show the history of the Model ETF Portfolio.

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