Build Mohamed El-Erian's Portfolio

What is Mohamed El-Erian’s portfolio?

The Mohamed El-Erian Portfolio is built with 10 ETFs. It is exposed to 75% equities and 25% bonds. It is also exposed to private equity and special situations which makes it unique.

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What is the historical return of Mohamed El-Erian’s portfolio?

Below you can see the historical return of Mohamed El-Erian’s portfolio.

Portfolio data was last updated on 1st of June 2023, 06:35 ET

NameYear to dateReturn in 202210 year returnCAGR since 1989 (%)Draw DownExpense ratioYield
Muhammad El-Erian Portfolio1.32-13.374.657.94-31.140.17%2.82
Performance for Mohamed El-Erian’s portfolio

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.

How does the Mohamed El-Erian portfolio compare to the best portfolios?

Below you can see the returns of the best portfolios that we have benchmarked.

NameSee PortfolioYear to dateReturn in 202210 year returnCAGR since 1989 (%)Draw Down
Premium PortfolioPremium-1.07-18.039.4610.8-35.42
Premium PortfolioPremium0.13-11.9811.2510.38-35.26
Premium PortfolioPremium9.69-18.1912.5210.28-37.63
Premium PortfolioPremium-2.2-13.088.2810.2-36.46
Premium PortfolioPremium3.96-18.757.010.19-44.88
Premium PortfolioPremium8.81-19.5112.0810.19-37.0
Premium PortfolioPremium-3.94-13.919.710.16-40.85
Premium PortfolioPremium-2.05-13.228.3110.08-36.35
Premium PortfolioPremium1.4-16.947.599.99-37.91
Premium PortfolioPremium8.04-18.8711.039.84-32.78
The 10 Best Performing Portfolios That We Have Benchmarked

How do you build Mohamed El-Erian’s portfolio with ETFs?

Below you can see how you build Mohamed El-Erian’s portfolio with ETFs.

  • 15.00% US Total Stock Market (VTI)
  • 15.00% International Developed Blend (VEA)
  • 12.00% Emerging Markets (VWO)
  • 7.00% Private Equity (using small-cap as replacement) (VIOO)
  • 5.00% Total US Bond Market (BND)
  • 9.00% International Bonds (BNDX)
  • 6.00% REITs (VNQ)
  • 11.00% Commodities (DBC / GSG)
  • 6.00% Long-Term Treasuries (TLT)
  • 6.00% TIPS (VTIP)
  • 5.00% Infrastructure (using VTI US Total Stock Market as replacement)
  • 8.00% Special Opportunities (using small-cap as replacement)

Check the best mutual funds and ETFs here.

If you want to replicate the portfolio in another way you can use the following ETFs for the special asset classes:

  • 7.00% Private Equity Invesco Global Listed Private Equity ETF, PSP

  • 5.00% Infrastructure (iShares S&P Global Infrastructure Index ETF, IGF.

  • 8.00% total in Special Opportunities consisting equally of:

    • 2.66% AlphaClone Alternative Alpha ETF, (ALFA)
    • 2.66% Invesco S&P Spin-Off ETF, (CSD)
    • 2.66% IQ Hedge Multi-Strategy Tracker ETF,(QAI )

Asset allocation for Muhammad El-Erian'sportfolio. Source: From the book When Markets Collide by Mohamed El-Erian, page 198

Who is Mohamed El-Erian?

Mohamed El-Erian is the former CEO of PIMCO. PIMCO has $1.88 Trillion under management (2018).

Mohamed El-Erian is also a veteran of the International Monetary Fund (IMF). In El-Erian’s book When Markets Collide: Investment Strategies for the Age of Global Economic Change, he presents a shock-absorbent long-term portfolio.

Mohamed El-Erian is often attributed to coming up with the expression new normal in the post-financial crisis.

Mohamed El-Erian is often interviewed on macro-economics issues. That is his specialty. So it should be interesting to see if he can translate his macroscopic perspective into a viable portfolio.

Description of Mohamed El-Erian’s portfolio

The portfolio of Mohamed El-Erian portfolio is characterized by having some asset classes we don’t usually see in private portfolios but only in institutional portfolios and sovereign wealth funds.

The biggest problem is the allocation of the _special opportunities asset class. _Special opportunities is a broad term. It, covers mergers and acquisitions. See this Zacks article for more. It explains to some degree what special situations include.

ETFs that cover special opportunities have begun to pop up, but unfortunately, we do not have a long benchmarking history of these ETFs to get a good picture. Therefore we cannot use them to benchmark the portfolio going back to 1989 as we have done with other portfolios.

Where can I learn more about Mohamed El-Erian?

You can find his book When Markets Collide: Investment Strategies for the Age of Global Economic Change on Amazon, voted best business book by the Financial Times and Goldman Sachs in 2008.

When Markets Collide: Investment Strategies for the Age of Global Economic Change

Suggestions for your next steps

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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.

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You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.

How old is Mohamed El-Erian?

Mohamed El-Erian was born on 19. August 1958.

Which portfolio is similar to Mohamed El-Erian’s?

Meb Faber’s Ivy 10 portfolio is most like Mohamed El-Erian’s. They both have commodities and the most popular asset classes.