2010 Yearly Investment Returns

Fund Name	Symbol	Allocation	Return
Vanguard Total Stock Market ETF	VTI	6.75%	17.42%
Vanguard Value ETF	VTV	6.75%	14.57%
Vanguard Small-Cap ETF	VB	6.75%	28.11%
Vanguard Small-Cap Value ETF	VBR	25.10%	12.02%
Vanguard REIT ETF	VNQ	3.00%	28.44%
Vanguard FTSE All-World ex-US ETF	VEU	5.40%	11.82%
iShares MSCI EAFE Value ETF	EFV	5.40%	4.59%
Vanguard FTSE All-World ex-US Small Cap ETF	VSS	5.40%	25.61%
WisdomTree International Small Cap Dividend ETF	DLS	5.40%	19.43%
Vanguard Emerging Markets ETF	VWO	5.40%	19.43%
iShares S&P Dev ex-US Property ETF	WPS	3.00%	18.13%
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Vanguard Total Bond Market ETF	BND	20.00%	5.73%
iShares S&P National AMT-Free Municipal Bond ETF	MUB	5.00%	-0.21%
SPDR Barclays Capital High Yield Bond ETF	JNK	5.00%	11.65%
iShares S&P U.S. Preferred Stock Index ETF	PFF	5.00%	13.19%
iShares JPMorgan USD Emerging Markets Bond ETF	EMB	5.00%	10.39%
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2010 Yearly Portfolio Return			14.41%

For 2010, the sample balanced passive portfolio (60% stocks, 40% income) returned a healthy 14.41%, in spite of a large bond market sell-off in the 4th quarter. Munis were absolutely crushed in the past several weeks after 60 Minutes ran a segment on the financial problems of states and municipalities, featuring Meridith Whitney and Chris Christie (see State Budgets: Day of Reckoning and Meridith Whitney: Wave of Muni Defaults to Spur Layoffs and Social Unrest). This portfolio relies on no star managers, and has much lower fees than the average mutual fund, and few if any capital gains distributions. I'm especially proud it beat perennial mutual fund all-stars such as Dodge and Cox Balanced (12.22%) and Oakmark Equity & Income (9.50%), and just edged out T. Rowe Price Capital Appreciation (14.07%). All performance figures were taken from Morningstar.