Millikan Asset Allocation Portfolio Review: 18 February 2025

The watering stretch.

Millikan is the asset allocation portfolio scheduled for review this morning.  This is a simplified version of other asset allocation portfolios in that the Millikan is using only six ETFs.  With the Millikan there is less emphasis on equities.  Bonds and treasuries make up a higher percentage of this portfolio, thus reducing the beta.  The current beta is 0.46 or a very conservative value.  Don’t expect this portfolio to perform as well in strong bull markets.

Millikan Asset Allocation Portfolio

With 25% allocated to SHV Millikan is an extremely conservative portfolio.  Dividends from VNQ, BND, TLT, and SHV should be sufficient to keep the Millikan in balance going forward.  With exception of VOO this portfolio is in balance.

Millikan Rebalancing Recommendations

While VOO is above target I do not plan to sell shares as it would incur a taxable event.  Going forward I will use monthly dividends to keep the portfolio in balance.  No recommendations are immediate as there is insufficient cash available.

Millikan Performance Data

Since 12/31/2021 the Millikan managed to outperform all of the five tracked benchmarks.  AOR is the standard for the Millikan and so far it is no contest.

Millikan Risk Ratios

Of the four risk ratios, Treynor is the least important.  With recent purchases of BND and SHV the portfolio beta dropped significantly.  The lowering of the portfolio beta raised the Treynor Ratio as shown in the graph.

Jensen’s Alpha is less susceptible to beta and that is one reason why I favor this risk measurement.

All February 2025 data values are well above the February 2024 numbers.  The positive slope of the Jensen is another sign of portfolio growth.