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Readers will note a few changes in the asset allocation for the Bethe. The expansion is in keeping with an equity oriented focus, but allows for a tad more diversity. Caution continues to make sense and that is why the large holding in short-term treasuries (SHV).
Bethe Asset Allocation Revised
Below is the latest asset allocation layout for the Bethe portfolio. Near the bottom of this post I provide a link to Portfolio Visualizer (PV) so readers can see how this portfolio performed over the past 10 years. At least one of the ETFs prevent one from going back as far as 1985. I think that is the earliest PV has data.
Bethe Rebalancing Recommendations
Until shares of VTI, SCHG, and SCHG are sold there is little cash to build up the recommended Buys. I have limit orders in place, but it will be a slow process to bring the Bethe into balance. Once the target percentages are in place the goal is to keep the each asset within +/- 5% of the recommendation.
Bethe Performance Data
Since 2022 the Bethe has lagged the AOR benchmark. The next few years will be a good test to see how an equity oriented portfolio performs. I continue to be cautious in the current market environment.
Bethe Risk Ratios
Based on the Sortino Ratio the portfolio continues to gain value. The Information Ratio informs me that the portfolio is not keeping pace with the benchmark. This is not surprising based on the current holdings. The Jensen Alpha or Performance Index is well off its highs of last fall, but improvement continues since the low back in March of this year.
Here is a link to the Portfolio Visualizer site. Check out some of the other recommended portfolios. If you forget this link, just use the search engine provided by ITA and type in Portfolio Visualizer.
Below is the most recent blog post for Bethe so readers can see the changes in the asset allocation.
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