Millikan Portfolio Review: 16 December 2025

Millikan is the asset allocation portfolio up for review this morning.  In preparation for a possible correction or recession, I shifted the asset allocation so the portfolio holds a higher percentage of ETFs to those that have lower annualized volatility.  The major shift is to reduce exposure to the seven to ten mega-cap stocks as the tech area is priced for perfection.

Millikan Asset Allocation Model

Here are a few major shifts in the asset allocation model for the Millikan.

• Reduce exposure to VOO and increase the percentage of equal-cap S&P 500 or the RSP ETF.
• Increase exposure to developed international equities (VEA) and emerging markets (VWO).
• Note the addition of BTCO and GLD.

Millikan Rebalancing Recommendations

Limit orders are in place to bring the various asset classes into balance.  As with similar AA portfolios I am first working on assets with a Buy recommendation.  Asset classes with a Sell or Hold are left as is.  No changes are planned for those ETFs.  One of the goals for 2026 is to reduce taxes by reducing portfolio churning.

VYM is a Buy and that asset is in balance so I will not touch it.  I continue to hold shares in SHV as cash.  When needed to bring asset classes into balance I will sell shares of SHV to raise the necessary cash.

Millikan Performance Data

Since 12/31/2021 the Millikan has outperformed the AOR benchmark by a wide margin and is very close to matching the illusive S&P 500 (SPY).

Millikan Risk Ratios

On a risk adjusted basis the Millikan is performing very well.  While the Jensen Alpha dipped this month it is still well above zero.  Each of the four risk measurements are well above where they were a year ago so the Millikan portfolio is working as anticipated.

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