The Yale investment model portfolio.
Vanguard Total Stock market index fund ....... 30%
Vanguard REIT index fund ........................... 20%
Vanguard TIPS index fund ........................... 15%
Vanguard Long Term Treasury index fund ....... 15%
Vanguard Developed Markets index fund ......... 15%
Vanguard Emerging Markets index fund ........... 5%
This model is used for 85% of their over $20 billion in endowment funds. Yes they have another $3.5 billion in a whole lot of other cats and dogs funds. Mostly because that is how they were donated to them. However as they can liquidate and migrate those funds based on the rules they received them under, they move them to the above model.
I attended high school with one of their leading investment model managers (Not David Swenson, but a person who works for him) and have discussed this model with him many times. I personally do not follow this exact model. I don't own REIT's as I own rental property. And I believe a small cap value index fund adds a better rate of return. I also use total bond and international bond in place of the TIPs and Treasuries.
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