Bethe Sector BPI Portfolio Review: 20 March 2024

Bridge of the Gods.

“The greatest enemy of a good plan is the dream of a perfect plan.” – von Clausewitz

Bethe is the Sector BPI portfolio up for review this morning.  While the portfolio holds approximately 13% in cash, I’m not in a big hurry to invest this money with the market this high.  Several limit orders to add more shares of VOO are in place and there is a 3% TSLO under the 70 shares of ESGV.  Future equity investments will concentrate on VTI and VOO when sectors are out of favor.

The two primary sector ETFs currently held are:  Consumer Staples and Utilities.  Utilities is a current purchase while Staples has been in the portfolio for many months.  No sectors are currently in the oversold zone.

Bethe Security Holdings

Below is the investment quiver and current holdings in the Bethe portfolio.  With no sectors in the oversold zone, new purchases are going into VOO and VTI.  Since the goal of Bethe is to come close or outperform the S&P 500 (SPY), it makes sense to use VOO as a primary investment vehicle.

The expense ratio for VTI is 3 basis points and for VOO it is back up to 10 basis points.  I checked the Vanguard site this morning for this information.

Bethe Manual Risk Adjustments

The plan is to sell off all shares of ESGV if and when the 3% TSLO is triggered.  Several limit orders are in place to purchase more shares of VOO.  It will take a several point drop for these TSLOs to hit the purchase price.

Bethe Performance Data

Since 12/31/2021 the Bethe lags the SPY benchmark by nearly one percentage point.  When compared to the other five potential benchmarks, Bethe holds a positive margin.

Why select 12/31/2021 as the starting date?  That date is very close to the launch date of the youngest ITA portfolio and I want a common start date so performance between the various portfolios can be compared.

Bethe Risk Ratios

The Jensen Alpha slope just turned positive.  Other good news shows up in the Information and Jensen ratios as both show slight improvements since February.

If you need to contact me, use this e-mail address.  [ itawealth@comcast.net ]

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