Good example of a risk managed asset portfolio – why invent your own when you can mimic the pros ?
We as individual investors are regularly taught that asset allocation is about finding the right risk/return balance by picking from asset classes like domestic equity, foreign equity, fixed income and cash, but those working at Harvard and Yale are maintaining a portfolio that is radically different. How can you mimic a portfolio like that ? especially when they have thought through how to reduce long term risk in a managed portfolio.
The FACTS are Harvard’s endowment earned 15% per annum in the last 10 years, and Yale’s boasted an annualized return of 17.2% during the same timeframe
Note that the asset allocation shown here is with ETFs and other mutual funds based in the U.S
