Merriman's Vanguard Portfolios

I'm impatient. If I'm comparing portfolios, I want to know right off what the performance differences are, then delve into why. So on that note, here's a comparison of 3 different investments:

1. The S&P 500
2. Merriman's suggested Vanguard buy and hold Balanced Portfolio (60% equities, 40% bonds)
3. Merriman's suggested equities portfolio (100% stocks, no bonds)


Remember, the Vanguard balanced (60% equity, 40% bond) portfolio is:

6% Vanguard 500 Index (VFINX)
6% Vanguard Value Index (VIVAX)
6% Vanguard Small Cap Index (NAESX)
6% Vanguard Small Cap Value Index (VISVX)
6% Vanguard REIT Index (VGSIX)
12% Vanguard Developed Markets Index (VDMIX)
12% Vanguard International Value (VTRIX)
6% Vanguard Emerging Markets Index (VEIEX)
20% Vanguard Intermediate Term U.S. Treasuries (VFITX)
12% Vanguard Short Term Treasuries (VFISX)
8% Vanguard Inflation Protected Securities (VIPSX)

The all-equity portfolio simply leaves out the bonds.

What's good:
You lose a LOT less money in down years with Merriman's balanced portfolio.
In up years, you usually make more money. Not necessarily a lot more.
Vanguard's low costs
Vanguard mutual funds give you low expense ratios and a history to compare to.

What's bad:
There are 11 different pieces to the suggested balanced portfolio.
Vanguard has no micro-cap index fund. Note this fund has both small cap and small cap value, instead of Merriman's suggested small cap value and micro-cap.
Vanguard also doesn't have an international small cap fund.