iav publishes a benchmark based on actual vanguard retail holder returns. (avg vanguard investor)
even if one has significant assets in brokerages, its insightful to compare what one may gain with less effort\complexity based on peers.
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AVII’s performance vs stocks (500 Index), bonds (Total Bond Index (VBTLX)), cash (Federal MM (VMFXX)) and a global balanced fund (LifeStrategy Moderate Growth) since the end of 1990.
Stocks: 3,295% (10.8% per year)
Global Balanced: 1,177% (7.7%)
AVII: 1,138% (7.6%)
Bonds: 387% (4.7%)
Cash: 143% (2.6%)
Comments
To be clear, the Average Vanguard Investor Index (AVII) is an average how the each dollar invested in Investor, Admiral, and ETF share classes and in VIP (Vanguard Insurance Product) portfolios has performed.
IVA says that it is "zero[ing] in on 'individual investors'” by looking just at these share classes. But because many funds offer neither institutional class shares nor an institutional clone, many institutional dollars flow into Admiral shares. Here's Vanguard Institutional's list of funds for institutions. Obviously ETF shares present the same problem of commingling retail and institutional dollars.
I hope the full piece (I only read the free portion) says more about its methodology.
It works as a crude benchmark if your asset allocation is similar to that of the average dollar. Otherwise, it's fun but not all that helpful, except perhaps to promote the newsletter: "Key Point ... The IVA Portfolios have outperformed the average investor.:
no perfectly clean way w/out private retail info.
if i recall, vanguard has some funds with no retail access to any class whatsoever, but unsure of relative size.
The link above gives the share classes of funds targeted at institutions. These include institutional class shares and institutional only funds. I believe the former end with "institutional" (vs. Admiral), while the latter start with "institutional", e.g. VINIX.
Though technically even these funds are open to retail investors. You only need pony up $5M (or whatever the min is). Also, these funds may be available to retail investors through 401(k) plans. Just to muddy the waters some more.