Bethe Portfolio Review: 11 February 2026

Sugar on Peony

Bethe is one of numerous Asset Allocation (AA) investing models tracked and managed here at Investment Trend Analysis (ITA).  While the Bethe is not fully in balance, the shares of the different ETFs are making their way toward the target percentages.  I had hoped to have all the AA portfolios in balance by the end of 2025.  Bethe is one portfolio that has yet to meet this goal.

Bethe Asset Allocation

Limit orders are in place to bring asset classes represented by VPU, VWO, VIG, GLD and RSP into balance.  With prices on the rise I am not chasing after these high values.  Instead, I am patiently waiting for some sort of pull-back.  The limit orders are good for six months.

Bethe Rebalancing Recommendations

A number of asset classes are well below target.  Below target is defined as any asset class that is more than one percentage point below target.  This is a narrow range as many asset managers are satisfied if a particular asset class stays within 3% to 5% of target.  That may be reasonable for very large portfolios, but for one the size of Bethe I prefer to stay within + or- 1% of target.

Assets that run up or stay well above target are free to run.  I am paying attention to asset classes that are below target.  The idea is to keep adding to the portfolio while rarely selling shares.  Fresh cash deposits and dividends are used to keep asset classes within 1% of the recommended target percentage.

Bethe Performance Data

Since 12/31/2021, or over five years, the Bethe continues to trail the AOR benchmark and is even further behind benchmarks that are heavily weighted toward U.S. Equities.  Bethe is set up to provide some resistance to a correction or even worse – a recession.  It is highly unlikely the Bethe will ever keep pace with the S&P 500 as this portfolio is not designed to do that.  It is much more conservative.

Bethe Risk Ratios

On a risk adjusted basis, how well is the Bethe performing?  For starters, the Jensen Alpha or Jensen Performance Index moved into positive territory.  That is an excellent signal.  In addition, the slope of the Jensen is positive.

The Information Ratio is negative, telling the manager the portfolio is not matching the AOR benchmark.  The least important risk ratio is the Treynor.  This ratio shows up well when the portfolio has a positive Jensen and the portfolio beta is low.  Such is currently the case.

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