Visual learners love this.

Every year Callan releases their highly anticipated Callan Periodic Table of Investment Returns. It is literally an annual event that advisors and clients cannot wait to see.

Far from the geeky, inside baseball world of highbrow charts that nobody but a Wall Street egghead could read, Callan puts together a tool that allows you to know, at a glance, how broad asset classes performed in the absolute, and relative to one another in a given year.

Man, this is  a great tool!

Every one of the squares on the quilt (as we call it) lists a specific index and its performance. Even better, when you are constructing a Passive Make Portfolio, each index has a corresponding exchange traded fund (ETF) to use as the real building blocks of your quilt…um…portfolio.

For instance, the S&P 500 square can be bought as SPY, the SPDR S&P 500 ETF.

The Russell 2000 Value can be bought as IWN, the iShares Russell 2000 Value ETF.

You can add the entire MSCI Emerging Markets Index just by pulling the trigger for EEM, iShares MSCI Emerging Markets ETF.

Virtually every broad and narrow sector, and every industry, and every alternative asset class has a corresponding ETF available on the market, so here is the point for Passive Makers: You can keep on keeping on by adopting a simple strategy, using simple tools, and outsmart 94% of Wall Street in the bargain!

Its called: Passive Make. Active Keep.

Leave a Reply

You have to agree to the comment policy.