U.S. Stocks: The Russell 3000 index measures the total return of the 3,000 largest companies in the US. This index is reconstituted annually (May31). The index is adjusted for free float and liquidity so the benchmark reflects the shares that are actually available on the open market.
REITS: The National Association of Real Estate Investment Trust (NAREIT), Equity REIT index, which measures the total return of most REITS which own, or have an “equity interest” in rental real estate.
International Stocks: The Vanguard FTSE All World ex US ETF (VEU) is designed to help US investors benchmark their international investments. The ETF comprises Large and Mid cap stocks providing coverage of Developed and Emerging Markets (46 countries) excluding the US. The underlying index is adjusted for free float and liquidity so the benchmark reflects the shares that are actually available on the open market.
A) The Barclay’s US Aggregate Index covers the US Dollar denominated, investment grade, fixed rate, and taxable areas of the bond market. This is the broadest measure of the taxable US bond market, including most Treasury, agency, corporate, mortgage-backed, asset-backed, and international dollar-denominated issues, all with investment grade ratings (rated Baa3 or above by Moody’s) and maturities of 1 year or more.
B) The Barclays Capital 5-Year U.S. Treasury Bellwethers Index is an unmanaged universe of 5 Yr Treasury bonds, and used as a benchmark against the market for intermediate-term maturity fixed-income securities. The index assumes reinvestment of all distributions and interest payments.
Gold: SPDR Gold ETF (GLD). This ETF is designed to track the London Fix Gold AM Price, the internationally recognized benchmark for gold prices set by the members of the London Bullion Market Association. It is based on actual buy and sell orders for gold in the global market.
Cash: The Citigroup 1 Month Treasury Bill Index is a market value weighted index of public obligations of the US Treasury with maturities of 1 month.
The information included in this report is based upon data obtained from public sources believed to be reliable; however, Tanglewood Wealth Management, Inc. does not guarantee the completeness or accuracy thereof.
The Total Return found under “Reward” represents the annualized growth rate of the benchmark portfolio for the time period shown with all interest, dividends and capital gains reinvested.
The Cumulative values found throughout the chart and in December of the final year represent the ending market value at the end of the period assuming a $100,000 hypothetical initial investment was made in the benchmark portfolio on January 1, 1991. Asset classes are rebalanced on January 1 of each year back to their original stated benchmark weightings.
Benchmark returns are for illustrative purposes only and do not represent actual Tanglewood Wealth Management, Inc. performance. Underlying Index returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.
On January 1, 2011, the benchmark allocations and index representations were updated to better-reflect the current investment environment while maintaining the desired risk/reward characteristics. Returns shown for periods prior to January 1, 2011 reflect the benchmark allocations shown below.