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Charles Ellis’ investment portfolio can be built with just 2 ETFs. It is exposed to between 50% – 100% equities and to between 0% – 50% bonds.
Here is the historical return of Charles Ellis’ portfolios.
Portfolio data was last updated on 1st of June 2023, 06:35 ET
|Name||Year to date||Return in 2022||10 year return||CAGR since 1989 (%)||Draw Down||Expense ratio||Yield|
|Charles Ellis Portfolio Under 40 Years Old||6.99||-18.01||8.18||7.22||-42.34||0.08%||2.11|
|Charles Ellis Portfolio 40 - 50 Years Old||6.41||-17.52||7.51||7.19||-37.59||0.08%||2.16|
|Charles Ellis Portfolio 50 - 60 Years Old||5.82||-17.03||6.84||7.11||-32.84||0.07%||2.2|
|Charles Ellis Portfolio 60 - 70 Years Old||4.65||-16.05||5.45||6.84||-23.34||0.06%||2.29|
|Charles Ellis Portfolio 70 - 80 Years Old||4.06||-15.56||4.74||6.65||-18.6||0.06%||2.34|
Here is what the table is showing you
Year to date: This shows what the portfolio has returned this year starting from the first trading day of the year.
10 Year return: This shows the compounded annualized growth rate over a ten-year period. The current year is excluded from calculations.
CAGR since 1989: This shows the compounded annualized growth rate since 1989. The current year is excluded from calculations.
Expense ratio: This shows the cost of holding the portfolio if you were to construct the portfolio using the proposed ETFs.
Yield: This is the expected dividend yield of the portfolio.
Please note that past performance is not a guarantee of future returns.
Here is how you build the Charles Ellis 40-50 years old portfolio with ETFs:
You can find the rest of Charles Ellis’ portfolios below
Below you can see the returns of the best portfolios that we have benchmarked.
|Name||See Portfolio||Year to date||Return in 2022||10 year return||CAGR since 1989 (%)||Draw Down|
Charles Ellis is a giant in the investment community. He is the epitome of a gentleman.
Charles Ellis was born in 1937 and has had a noteworthy career.
With over 50 years of investing experience, Charles Ellis knows how to invest.
The investment management business (it should be a profession but is not) is built upon a simple and basic belief: Professional money managers can beat the market. That premise appears to be false.
– Charles D. Ellis
Charles D. Ellis has written one of the most famous investment books of all time. It is called Winning The Loser’s Game:
It is outstanding!
The last half of the book caters more to investment professionals as it goes deep into how to construct an investment policy but that is still in my opinion very interesting!
The book is a continuation of his article “The Loser’s Game” which appeared in the Financial Analyst Journal.
His book Winning The Loser’s Game is part of the canon of investing literature, in my opinion.
How can institutional investors hope to outperform the market… when, in effect, they are the market?” – Charles D. Ellis
Together with co-investing giant Burton Malkiel, he authored another fantastic book which is called The Elements of Investing, Easy Lessons for Every Investor.
It is practical, relevant, and offers concrete advice on how to navigate the investing landscape.
Charles D. Ellis is a pleasure to listen to as he is always extremely eloquent, highly intelligent, and, as Barry Ritholz said in an interview, “he is the perfect gentleman.”
The investment portfolios of Charles Ellis come from his book The Elements of Investing, Easy Lessons for Every Investor.
In that book, both Burton Malkiel and Charles Ellis offer their recommendation on how to construct a portfolio.
The portfolios of Charles Ellis are no surprise when you are aware of his investing conviction. I know of only one other person with such a strong belief in simplifying your investment strategy, and that is John C. Bogle.
“successful firms do flourish by holding fast to fundamental values: sticking to the right path; taking the long-term view; and insisting always on quality and excellence.”
– Charles D. Ellis
Charles Ellis does not think you can beat the market. It is a loser’s game to think that you can. It is best to diversify as much as you can.
For this reason, his portfolios are constructed using only two asset classes:
Charles Ellis’ portfolio recommendation is based on your age. The older you are, the more bonds you should have in your portfolio.
This is the standard approach in investing and is mirrored by many others like John Bogle.
There is one more book that I want to highlight before we turn to asset allocation. It is a relatively new book by Ellis: and it is called The Index Revolution and is from 2016.
It is a fantastic summary of the thinking of Charles Ellis combined with investing wisdom. It is forworded by his long-time friend and collaborator Burton Malkiel.
Below you can find the asset allocation for all of Charles Ellis’ portfolios and how to build them using ETFs.
There are a lot of ETFs! It is pretty boring to sift through hundreds and hundreds of ETFs just to find the right one, but it is worth it!
Finding the right and BEST ETF could earn you a lot more money than number two on the list.
We have done the work for you – all for FREE.
We have carefully selected ETFs for each asset class that the portfolios on portfolioeinstein.com use. If you want to read more about our selection process and see what we consider the best ETFs please visit our article What Is The Best ETF?
If you are a European investor you need to buy European ETFs (they need to be of the UCITS kind!).
We have listed 47 of the best ETFs in our article What Are The Best ETFs For European Investors? (Here Is 47).
As of 2021 we also track socially responsible investing ESG portfolios. Socially responsible investing (ESG) portfolios prioritize investing that puts an emphasis on environmental, social, and corporate governance issues.
You can find the socially responsible investing ESG ETFs in the same article.
Go here for the first interview that Barry Ritholz did with Charles Ellis on his Master in Business podcast from Bloomberg.
Go here for the second interview that Barry Ritholz did with Charles Ellis on his Master in Business podcast from Bloomberg.
The best and most famous book by Charles Ellis is Winning the Loser’s Game, Seventh Edition: Timeless Strategies for Successful Investing, but he has written many more.
If you are looking for portfolios that are just as simple as Charles Ellis’ portfolios you should check out the balanced portfolios and the three-fund portfolios.
Finding the right portfolio is hard. Maintaining your portfolio is also daunting.
If you want access to our high-performing portfolios then you want to take a look at the premium portfolios.
This is a paid product that gives you the 20 best-performing portfolios since 1989. The portfolios represent a great opportunity for you to get more money from your investment portfolios. The 20 portfolios are the best among the literally hundreds of other portfolios we have benchmarked since we started.
You stand to gain thousands more dollars EACH YEAR for the price of a few months of Netflix.
If you have already committed to a portfolio then maybe you need help maintaining the portfolio. In this case you will find our rebalance worksheet useful.
Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.
You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.
The best world stock ETF is the Vanguard Total World Stock ETF (VT)
The best Total US Bond Market ETF is the Vanguard Total US Bond Market ETF (BND).