Next to the Schrodinger the Copernicus is the easiest portfolio to manage and consistently one of the top performing portfolios tracked here at ITA Wealth Management. The Copernicus investing model is to purchase U.S. Equities and never sell unless there is an emergency. Since launching this portfolio in mid-January 2022, no shares have been sold out of the portfolio. Numerous deposits were made in the down market of 2022 and that is why the Internal Rate of Return (IRR) is so high with respect to the S&P 500 (SPY) benchmark.
The owner of the Copernicus continues to add new money when possible. One goal is to push this portfolio over the $100,000 mark within two years.
Copernicus Security Holdings
Over the next few months I will concentrate on adding shares of VOO as the goal of the Copernicus is to outstrip the S&P 500 (SPY) and VOO is the mirror of SPY. VOO is also a very low cost ETF.
Copernicus Performance Data
Since 12/31/2021 the Copernicus is soundly outperforming the SPY benchmark. This performance difference is due to dollar-cost-averaging during the bear market of 2022. The margin of victory is even greater when compared with other potential benchmarks. For all the model fussing, buying and holding U.S. Equities is a sound investing model.
This model is one I highly recommend for young folks or those who will not need the money for ten to fifteen years.
Copernicus Risk Ratios
The Copernicus lost a little ground when one checks the Jensen and Information Ratios. On balance, all risk ratios are extremely high and will be difficult to maintain during 2024.
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Lowell,
Do you plan on merging the SPY and VOO holdings for simplification?
Bob W.
Bob W.,
I’ll likely leave SPY as is or place a TSLO for some capital preservation. From this point on I plan to concentrate on VOO as the expense ratio is lower. Either SPY or VOO do a good job of covering the S&P 500. SPY is not needed.
Lowell