Investing Pathways - Your Guide to a Sound Financial Future  
Log InSite Map
 
Classroom Portfolio Observer Investing Basics Personal Finance Stocks and Funds Investing Basics E-Book
 
 Home
 Register
 FAQs
 Glossary
 About
 Visit AAII.com
American Association of Individual Investors Web site

How AAII members feel about current market conditions as of 11/22/2017:
Bullish 35.49%
Neutral 35.49%
Bearish 29.01%


Portfolio Observer

Popular Investment Benchmarks   (Data as of 10/31/2017)
Stocks Standard Deviation 1 yr 5 yrs 10 yrs
Large-Cap Stocks 10.07% 18.46% 14.06% 7.31%
Mid-Cap Stocks 11.03% 16.96% 13.92% 8.53%
Small-Cap Stocks 12.33% 17.21% 13.79% 8.44%
International Stocks 11.47% 18.91% 8.34% 1.41%
Emerging Markets Stocks 15.33% 18.63% 3.42% 0.82%
Fixed Income
Intermediate Bonds 3.53% -1.38% 1.15% 4.1%
Short-Term Bonds 1.04% 0.1% 0.58% 1.93%
Overall market
Vanguard Total Stock Market Index (VTSMX) 10.22% 18.51% 14.05% 7.57%

AAII Asset Allocation Models

What is your investor profile? Follow one of our recommended allocations and check back frequently for monthly return data.

Investor Profile Standard Deviation 1 yr 5 yrs 10 yrs
Aggressive Investor
  • Age 18-35
  • 30+ Years Investment Horizon
9.0% 16.0% 10.5% 5.6%
Moderate Investor
  • Age 35-55
  • 20+ Years Investment Horizon
6.7% 12.2% 8.7% 5.5%
Conservative Investor
  • Age 55+
  • 10+ Years Investment Horizon
4.6% 8.4% 7.2% 5.4%
 Suggested Allocation Breakdowns
Aggressive


   20% Large-Cap Stocks
   20% Mid-Cap Stocks
   20% Small-Cap Stocks
   20% International Stocks
   10% Emerging Markets Stocks
   10% Intermediate Bonds
   0% Short-Term Bonds
Moderate


   20% Large-Cap Stocks
   20% Mid-Cap Stocks
   10% Small-Cap Stocks
   15% International Stocks
   5% Emerging Markets Stocks
   30% Intermediate Bonds
   0% Short-Term Bonds
Conservative


   25% Large-Cap Stocks
   10% Mid-Cap Stocks
   10% Small-Cap Stocks
   5% International Stocks
   0% Emerging Markets Stocks
   40% Intermediate Bonds
   10% Short-Term Bonds
Aggressive Portfolio Return
YTD: 13.4%
1 yr: 16.0%
5 yrs: 10.5%
10 yrs: 5.6%
Moderate Portfolio Return
YTD: 10.6%
1 yr: 12.2%
5 yrs: 8.7%
10 yrs: 5.5%
Conservative Portfolio Return
YTD: 7.4%
1 yr: 8.4%
5 yrs: 7.2%
10 yrs: 5.4%

Broad Allocation Scenarios
Aggressive Investor

Allocations

Aggressive Portfolio Return
1 yr: 16.0%
5 yrs: 10.5%
10 yrs: 5.6%

Characteristics
Growth: Substantial
Income: Very Low
Risk: Substantial Year-to-Year Volatility of Portfolio Value
10% Average Annual Growth in Value
-30% Bad Year

Time Horizon
Age: often 18-35
30+Years: Long Investment Horizon
For investors who are very risk tolerant
Transition: 80% Diversified Stock
20% Fixed Income
Investors, as they age, usually transition their portfolios toward less risky and less aggressive asset allocations.

Back to Top

Moderate Investor

Allocations

Moderate Portfolio Return
1 yr: 12.2%
5 yrs: 8.7%
10 yrs: 5.5%

Characteristics
Growth: Moderate
Income: Low
Risk: Moderate Year-to-Year Volatility of Portfolio Value
8% Average Annual Growth in Value
-20% Bad Year

Time Horizon
Age: often 35-55
20+Years: Mid-Term Investment Horizon
 
For investors who can tolerate some risk
Transition: 60% Diversified Stock
40% Fixed Income
Investors, as they get closer to retirement, usually transition their portfolios toward lower risk and more conservative allocations.

Back to Top

Conservative Investor

Allocations
Conservative Portfolio Return
1 yr: 8.4%
5 yrs: 7.2%
10 yrs: 5.4%

Characteristics
Growth: Low
Income: Moderate
Risk: Low Year-to-Year Volatility of Portfolio Value
6% Average Annual Growth in Value
-15% Bad Year

Time Horizon
Age: often 55+
10+Years: Short-Term Investment Horizon
 
For investors who are not risk tolerant

Back to Top


Register for free with Investing Pathways and receive:
AAII Investor Update E-Newsletter
Educational investment articles
Portfolio Observer
Investor Classroom "mini-courses"
and much more!

Investing Basics... and Beyond is an E-book you may think is only for beginning investors... but it's filled with so much sound advice that every reader can benefit from.
 GO