Last year was solid for all of the core asset classes. US equities, international equities, and bonds all landed in the black. My Model Retirement Saver Portfolios, which are geared to people who are still working and saving for retirement, feature anywhere from 50% to 95% of their assets in stocks. All logged double-digit gains in a strong equity market in 2025, with their biggest returns coming from international stocks.<\/p>\n
Outperformance from non-US stocks was a turnabout from 2023 and 2024, when non-US stocks managed gains but couldn\u2019t keep pace with the soaring US market. Another switcheroo: The mutual fund portfolios bested their analogous all-ETF portfolios by convincing margins in 2025 after lagging them in 2023 and 2024. Primecap Odyssey Growth, which appears in all three mutual fund portfolios, was the main driver of those portfolios\u2019 success last year. The low-turnover fund saw strong gains among its technology, healthcare, and industrials names.<\/p>\n
I also compare each portfolio\u2019s return with that of a blended benchmark composed of inexpensive index funds and exchange-traded funds. The goal is to examine whether an investor would have done just as well assembling a portfolio of three core index funds\u2014US stock, non-US stock, and bonds\u2014and calling it a day. The 2025 results were a mixed bag. While the mutual fund portfolios bested their blended benchmarks, the ETF portfolios all lagged their minimalist benchmarks. For investors who are compelled by a simple portfolio of index funds or ETFs, I\u2019ve created minimalist versions<\/a>.<\/p>\n And while these Retirement Saver Portfolios are geared toward investors\u2019 tax-sheltered accounts, I\u2019ve also created tax-efficient versions, both mutual fund<\/a> and ETF<\/a>.<\/p>\n Aggressive Mutual Fund Saver Portfolio<\/p>\n 20% Primecap Odyssey Growth POGRX<\/a><\/p>\n 20% Oakmark Fund OAKMX<\/a><\/p>\n 15% Vanguard Extended Market Index VEXAX<\/a><\/p>\n 33% Vanguard Total International Stock Index VTIAX<\/a><\/p>\n 7% Oakmark International Small Cap OAKEX<\/a><\/p>\n 5% TCW MetWest Total Return Bond MWTRX<\/a><\/p>\n 2025 Return: 24.19%<\/p>\n Moderate Mutual Fund Saver Portfolio<\/p>\n 12% Primecap Odyssey Growth<\/p>\n 13% Oakmark Fund<\/p>\n 13% Vanguard Dividend Appreciation Index VDADX<\/a><\/p>\n 10% Vanguard Extended Market Index<\/p>\n 27% Vanguard Total International Stock Index<\/p>\n 5% Oakmark International Small Cap<\/p>\n 20% TCW MetWest Total Return Bond<\/p>\n 2025 Return: 20.45%<\/p>\n Conservative Mutual Fund Saver Portfolio<\/p>\n 10% Primecap Odyssey Growth<\/p>\n 10% Oakmark Fund<\/p>\n 10% Vanguard Dividend Appreciation Index<\/p>\n 5% Vanguard Extended Market Index<\/p>\n 10% Vanguard Total International Stock Index<\/p>\n 5% Oakmark International Small Cap<\/p>\n 30% TCW MetWest Total Return Bond<\/p>\n 10% Fidelity Short-Term Bond FSHBX<\/a><\/p>\n 10% Vanguard Short-Term Inflation-Protected Securities Index VTAPX<\/a><\/p>\n 2025 Return: 14.81%<\/p>\n Performance Recap<\/p>\n Primecap Odyssey Growth was the best performer in any of the Retirement Saver Portfolios in 2025, besting the broad US market by a wide margin and landing in the top 1% of large-blend funds. That helped atone for what had been a string of underwhelming returns over the past decade. Morningstar downgraded the fund\u2019s Medalist Rating in mid-2025, but it remains at Silver thanks to its seasoned management and disciplined process.<\/p>\n The portfolios\u2019 weightings in non-US stocks are in line with the ratio of non-US stocks in the global market capitalization. As a result, they also benefited handsomely as international stocks rallied and the dollar declined last year.<\/p>\n The portfolios\u2019 core fixed-income fund, TCW MetWest Total Return Bond, notched a strong year in 2025. Its longer-than-average duration provided a boost amid declining interest rates, though that same positioning hurt it from 2022-24. The fund has seen significant manager changes over the past several years, but it has a Silver rating thanks to its still-deep and experienced management team and the soundness of its process.<\/p>\n Portfolio Changes for Mutual Fund Saver Portfolios: None. All the holdings in the mutual fund portfolios retain Morningstar Medalist Ratings at this time.<\/p>\n Aggressive ETF Saver Portfolio<\/p>\n 40% Vanguard Total Stock Market ETF VTI<\/a><\/p>\n 10% Vanguard Small-Cap Value ETF VBR<\/a><\/p>\n 35% Vanguard FTSE Developed Markets ETF VEA<\/a><\/p>\n 10% Vanguard FTSE Emerging Markets ETF VWO<\/a><\/p>\n 5% iShares Core Universal USD Bond ETF IUSB<\/a><\/p>\n 2025 Return: 22.99%<\/p>\n Moderate ETF Saver Portfolio<\/p>\n 40% Vanguard Total Stock Market ETF<\/p>\n 8% Vanguard Small-Cap Value ETF<\/p>\n 25% Vanguard FTSE Developed Markets ETF<\/p>\n 7% Vanguard FTSE Emerging Markets ETF<\/p>\n 20% iShares Core Universal USD Bond ETF<\/p>\n 2025 Return: 19.63%<\/p>\n Conservative ETF Saver Portfolio<\/p>\n 30% Vanguard Total Stock Market ETF<\/p>\n 5% Vanguard Small-Cap Value ETF<\/p>\n 12% Vanguard FTSE Developed Markets ETF<\/p>\n 3% Vanguard FTSE Emerging Markets ETF<\/p>\n 30% iShares Core Universal USD Bond ETF<\/p>\n 10% Vanguard Short-Term Inflation-Protected Securities ETF VTIP<\/a><\/p>\n