For those investors running Dual Momentum portfolios, this Seeking Alpha article is of interest. While you likely know the dominance of the Big Five stocks, the article makes us aware of how VTI, SPY, and other large-cap ETFs are skewed by these profitable companies. What adjustments might we make to our DM or Relative Strength portfolios? Here are two suggestions.
1. Substitute VO for VTI to represent U.S. Equities in DM portfolios. Over the long run, I think VO has been the better performer, but I'm not sure if dividends were included. Check this out on your sources.
2. In Relative Strength portfolios, limit the Strategic Asset Allocation percentage to something lower than 100%. This will force the Kipling to diversify the portfolio.
Lowell
I ran a test comparing VO and VTI over on Portfolio Visualizer and when dividends are accounted for, VTI outperforms VO.
Lowell
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