Travel photo.
Bethe is the asset allocation portfolio schedule for an update this morning. This portfolio is undergoing a few changes in the asset makeup as I am setting this portfolio up, as well as several others, to withstand a potential market correction. As currently constructed the Bethe is holding too many shares of SCHD, based on the target percentage. Rather than selling shares I plan to hold the SCHD shares steady and rebuild below target assets as dividends and new cash comes in.
Bethe Asset Allocation Holdings
Below is the revised asset allocation mix for the Bethe portfolio. The two ETFs most out of balance to the low side are VTI and GLDM. I expect the price of VTI to drop so I plan to wait patiently for a better entry price. GLDM pays no dividend so I don’t mind waiting for new cash before bring this ETF up to the target percentage. Other than VTI and GLDM no ETF is more then one percentage point below target.
Bethe Rebalancing Recommendations
New cash will be used to bring VXUS closer to target. Next in line to add shares is VTI followed by GLDM. By early 2027 the Bethe should be very close to being in balance.
Bethe Performance Data
Since 12/31/2021 the Bethe has lagged the AOR benchmark. This another portfolio where the owner needed cash from this account for personal reasons and those withdrawals created a negative impact on performance.
Bethe Risk Ratios
The two bright spots for the Bethe are the improvement in the Treynor and Information Ratios. With the revised asset allocation I expect to see improvement in the Jensen Alpha ratio over this next year.
Creating a Recession Proof Portfolio
Discover more from ITA Wealth Management
Subscribe to get the latest posts sent to your email.
Leave a Comment or Question