The Whole, and the Parts

Written by John Osbon on January 3, 2012

The investment returns for 2011 are now officially in. It was a good year for many asset classes, like bonds, gold, and domestic stocks.  For others, like emerging markets, it was straight down.  I am happy to report that the four of the largest index positions at Osbon Capital – DIA, GLD, TIP, and VNQ – had positive returns ranging from 6% to 13%.

Osbon Capital practices goal-based asset management. We construct index portfolios for our clients, each customized to their specific needs and objectives.  The list below shows the returns of the ETFs we most frequently use in this process.  The color-coded column on the far right shows total return.

Of course, the real story of 2011, or any year, is not so much how each index ETF performed individually, but how a diversified portfolio as a whole advanced each client’s goals.

Source of data: Bloomberg.

 


This article may include forward-looking statements. All statements other than statements of historical fact are forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” and “expect”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Various factors could cause actual results or performance to differ materially from those discussed in such forward-looking statements.

Nothing in this article is intended to be or should be construed as individualized investment advice. All content is of a general nature. Individual investors should consult their investment adviser, accountant, and/or attorney for specifically tailored advice.

Any references to third-party data or opinions are listed for informational purposes only and have not been verified for accuracy by the Adviser. Adviser does not endorse the statements, services or performance of any third-party vendor without specifically assessing the suitability of a third-party to a client’s or a prospective client’s needs and objectives.

ETFs mentioned in this article are those which we most frequently use in creating client portfolios. The list is for illustrative purposes, demonstrating the range of returns experienced in 2011. Not all of these ETFs are held in any single portfolio. Some client portfolios hold securities not on this list.

An investment cannot be made directly in an index. Past performance is not an indicator of future results. Returns shown are before any investment advisory fees.


  • This communication may include forward-looking statements. All statements other than statements of historical fact are forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” and “expect”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Various factors could cause actual results or performance to differ materially from those discussed in such forward-looking statements.”
  • “Historical performance is not indicative of future results. The investment return will fluctuate with market conditions.
  • Past performance is not indicative of any specific investment or future results. Views regarding the economy, securities markets or other specialized areas, like all predictors of future events, cannot be guaranteed to be accurate and may result in economic loss to the investor.
  • Investment strategies, philosophies, allocations and holdings are subject to change without prior notice.
  • This communication is intended to provide general information only and should not be construed as an offer of specifically tailored individualized advice.
  • While the Adviser believes the outside data sources cited to be credible, it has not independently verified the correctness of any of their inputs or calculations and, therefore, does not warranty the accuracy of any third-party sources or information.
  • Adviser does not endorse the statements, services or performance of any third-party vendor.
  • Unless stated otherwise, any mention of specific securities or investments is for hypothetical and illustrative purposes only. Adviser’s clients may or may not hold the securities discussed in their portfolios. Adviser makes no representations that any of the securities discussed have been or will be profitable.