This plan uses Vanguard ETFs instead of index funds. Since there are no Vanguard funds for high yield bonds, inflation protected bonds and precious metal miners, we have to use some other equivalents.
Please also be aware that since most ETFs have short history, any historical performance before 2008 is not very meaningful. We suggest to look at the original index fund based plan for reference.
Alexander Green proposed this The Gone Fishin' Portfolio which was outlined in his book 'The Gone Fishin' Portfolio'. Based on the book, the following is the allocation using Vanguard low cost index funds (in the popular Bogleheads forum, there is a discussion thread devoted to this portfolio):
Vanguard Total Stock Market Index (VTSMX), (ETF: VTI) - 15%
Vanguard Small-Cap Index (NAESX) (ETF: VB) - 15%
Vanguard European Stock Index (VEURX) (ETF VGK) - 10%
Vanguard Pacific Stock Index (VPACX) (ETF VPL) - 10%
Vanguard Emerging Markets Index (VEIEX) (ETF VWO) - 10%
Vanguard Short-term Bond Index (VFSTX) (ETF BSV) - 10%
Vanguard High-Yield Corporates Fund (VWEHX) (ETF HYG) - 10%
Vanguard Inflation-Protected Securities Fund (VIPSX) (ETF TIP) - 10%
Vanguard REIT Index (VGSIX) (ETF VNQ) - 5%
Vanguard Precious Metals Fund (VGPMX) (ETF XME)- 5%
It is rebalanced once a year. MyPlanIQ maintains this static or lazy portfolio here.
Based on the http://www.gonefishinportfolio.com web site, the following is the historical performance from 2003-2009 which matches exactly to MyPlanIQ's Alex Green Gone Fishin Lazy Portfolio :
This portfolio should be compared with this plan's SAA or TAA growth portfolios as it has 20% safe fixed income exposure and in MyPlanIQ, we classify High Yield bond as a risky asset.
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The following is a moderate-risk model portfolio constructed from the investment options of Alexander Green`s Gone Fishin ETF Portfolio.
This portfolio is proactively monitored and rebalanced on a monthly basis when needed, ensuring it remains in line with its target allocation. We offer customization features, allowing subscribers to tailor the portfolio to align with their own risk tolerance and return expectations by changing risk profile parameter.
Our model portfolio is rooted in the MyPlanIQ Asset Allocation Composite (AAC) strategy. This dynamic (tactical) asset allocation and quantitative fund selection algorithm prioritize risk management by dynamically adjusting stock allocations based on prevailing asset momentum. Extensive research has shown that this momentum-based tactical approach can potentially reduce temporary losses while maintaining or outperforming traditional buy-and-hold strategies.
Both historical back test and real-time portfolio return and risk data are shown in the table on this page. These metrics are compared with stock and moderate allocation index funds.
Furthermore, subscribers have the option to explore alternative strategies such as Strategic Asset Allocation Optimal (SAA) and Tactical Asset Allocation (TAA) to further customize their model portfolio. See our investment methodology for more details on the investment strategies