Several portfolios are not performing as expected. To improve returns I’m in the process of making major adjustments and the Franklin portfolio is in line for a change. The “investment quiver” is undergoing restructure as you see in the first screenshot. This is a small portfolio making it a good “lab rat” for this alteration.
Since TDAmeritrade went commission free with all its ETFs, additional flexibility is available for portfolio construction. The following list of ETFs is not too far different from the Rutherford 10. Gold and Commodities are not part of the portfolio. However, you will see additional equity ETFs such as VTV, VOE, VBR, VUG, VOT and VBK. These six ETFs cover all the value, growth, and size asset classes of the broad U.S. Equities market. This hope is that by including more equity ETFs the overall return of the portfolio will rise.
There are “off-ramp” ETFs such as AGG, TLT, TIP, and PCY available for periods when the market goes into decline as it did in 2008 and early 2009. Developed International Equities, Emerging Market Equities, and U.S. REITs are still part of the portfolio.
I am placing percentage limits on the various asset classes. Check out the third column from the left.
Franklin LRPC Recommendations
Below are the current recommendations when using the LRPC model. A full review of the Franklin is some days away so I don’t plan to go further with this analysis.