Handcrafted Recorder
Bethe is one of the portfolios recently shifted over to the Asset Allocation (AA) model as the owner is looking for long-time “stability.” Stability as best can be established for a financial account. As with the other AA portfolios, the Bethe is diversified widely across the globe using both equities and bonds. The portfolio includes large-cap, mid-cap, and small-cap stocks. Both developed international and emerging markets are included. Bonds, real estate, and treasuries provide lower volatility holdings, although TLT is quite volatile.
Bethe Asset Allocation Portfolio Holdings
Below is the investment quiver and ETF “arrows” that make up the Bethe. As a new AA portfolio there is still much work to be done to bring all the asset classes into balance. More on this in the next screenshot.
Bethe Rebalancing Recommendations
Since VTI and VOO have significant overlap in the stocks held in each, I am selling VTI. Stocks found in VTI and not VOO can be found in either VO or VB so all bases are covered. Once shares of VTI and a few shares of QQQ are sold I can then begin to bring asset classes below target into balance with the recommended percentages.
Multiple limit orders are in place to pick up shares for those asset classes under target.
Bethe Performance Data
Since 12/31/2021 the Bethe has outperformed its AOR benchmark. Possible benchmarks such as all equity ETFs VTI, SPY, and ESGV are difficult to beat in a strong bull market.
Bethe Risk Ratios
The risk data for November 2024 is looking very good as all measurements are stronger than they have been for the last few months. A positive slope for the Jensen Alpha is encouraging and once we clear the November 2023 value of 1.35 the slope will increase further.
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