Einstein Portfolio Update: 27 October 2026

Canby Scarecrow

If you are looking for a simple eight (8) asset allocation portfolio, Einstein is the example.  I am in the process of reducing the number of asset classes so all are currently not in balance.  Below I will go through the process of how I intend to bring the various assets (ETFs) into balance.

Einstein Holdings

The following portfolio, when in balance, will come close to Vanguard’s 30/70 stock/bond ratio recommendation.  The Einstein eventually will be closer to a 40/60 or the reciprocal of the “standard” 60/40 ratio.

Einstein Rebalancing Recommendations

Instead of selling shares of VTIP and SCHD to bring them into balance, I am concentrating on VGIT as it is an interest generating ETF.  As new cash is added and dividends emerge I will purchase shares of VXUS and VTI.  With existing cash limit orders are in place to add more shares to the equity ETFs.

Einstein Performance Data

Since 12/31/2021 performance has lagged for the Einstein.  The move toward a more conservative asset allocation seems to be working. The Einstein has been holding its own as one can see from the Risk Ratio data.

Einstein Risk Ratios

Over the past year, based on the Information Ratio, the Einstein nearly matched the benchmark.  Jensen Alpha is the most valuable risk measurement and here we see improvement since last October.  The positive slope (0.08), while modest, is a positive sign the new asset allocation model is working.  While one year does not make a trend, the current positive data is encouraging.

Comments are always welcome.