New global market portfolio benchmarks revolutionize investment strategies worldwide!
The article introduces two global market portfolio benchmarks for different types of investors, using a wide range of assets. The benchmarks are based on a global capital stock and include 87 indices across 11 asset classes. The investable portfolio is made up of ETFs only, providing transparency and systematic structure. It achieved an average annual return of 4.7% with a standard deviation of 10.1% over a 15-year period. The noninvestable portfolio had a higher return of 5.9% with lower risk and better diversification due to a focus on real assets.