What is Mohamed El-Erian’s portfolio?
The Mohamed El-Erian Portfolio can be built with 10 ETFs. It is exposed to 75% equities and 25% bonds. It is a high-risk portfolio. It is exposed to private equity and special situations.
For the past 10 years, The Mohamed El-Erian portfolio has returned 7.42 with a standard deviation of 12.75. Last year it returned 8.42%. The dividend yield is 2.25%. The 30-year return is 8.66%. Year to date the Mohamed El-Erian Portfolio has returned -8.91%.
- What is the historical return of Mohamed El-Erian’s portfolio
- How does the Mohamed El-Erian portfolio compare to the best portfolios?
- How do you Mohamed El-Erian portfolio with ETFs?
- Who is Mohamed El-Erian?
- Description of the Mohamed El-Erian portfolio
- Resources for the Mohamed El-Erian portfolio
- Suggestions for your next steps
- Related questions
What is the historical return of Mohamed El-Erian’s portfolio
Below you can see the historical return of Mohamed El-Erian’s portfolio.
Data was last updated on July 31, 2022 at 08:29 a.m. ET
|Name||Asset class count||Year to date||Return in 2020||10 year return||CAGR since 1989 (%)||Risk level||Expense ratio|
|Muhammad El-Erian Portfolio||8||-8.91||8.42||7.42||8.66||3||0.17%|
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.
How do you Mohamed El-Erian 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 proxy) (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 proxy)
- 8.00% Special Opportunities (using small-cap as proxy)
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% 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 )
Who is Mohamed El-Erian?
Mohamed El-Erian is the former CEO of PIMCO. PIMCO has $1.88 Trillion under management.
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 the Mohamed El-Erian 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 special opportunities. Special opportunities is a broad term. It, more often than not, covers mergers and acquisitions. See this Zacks article for more. It explains to some degree what special situations include.
There have begun to pop up ETFs that cover this area, 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.
Resources for the Mohamed El-Erian portfolio
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.
Suggestions for your next steps
Finding the correct portfolio is hard. Maintaining your portfolio is also daunting. If you are still in doubt about which portfolio to choose, we suggest you read our article How To Invest Money: 5 Simple Steps That Work For Anyone
If you have already committed to a portfolio – good for you! If you need help maintaining the portfolio you will find our rebalance worksheet useful.
Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.
You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.
Rebalancing lowers your portfolio risk and can increase your returns.
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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.