Several of us have frequently discussed what impact TLT might have when we look at various back-testing results. The “Rutherford 10” tends to be a difficult portfolio to outperform. Could this be due to the strong performance from TLT over the years tested? To see what impact TLT is having on performance, I asked Ernie Stokely to run tests on the “Rutherford 10” with and without TLT. Ernie has been most generous with his time in running many back-tests I’ve requested.
Below are the results. I hope we will have more to report later, but for now, readers can see that TLT is definitely an “enhancer.” One test is the standard “Rutherford 10” where TLT is part of the portfolio. The second run substitutes BIV for TLT.
That fourth column (first BIV column) should read BIV 2P instead of BIV 3P.
If you have questions, please post them in the Comments section.