Pauling Portfolio Review: 3 March 2026

Pauling is an asset allocation portfolio that is slowly working out of a performance deficit.  Over the past few months I have been reworking the asset allocation mix and that work is not quite complete as readers will see in one of the following screenshots.  Several asset classes are out of balance or not close to the recommended target percentage.

Pauling Asset Allocation Holdings

Below is the current list of Exchange Traded Funds (ETFs) that make up the Pauling.  As readers can see, I am moving away from mega-cap stocks or stocks that make up 40% of the S&P 500.  I have a limit order in place to sell VOO, even though the Pauling currently holds only 2 shares.

In place of large-cap stock the Pauling focuses on dividend paying ETFs and mid- and small-cap stocks.

Pauling Rebalancing Recommendations

The purple arrow points to changes in shares that are coming.  Trailing Stop Loss Orders are in place for the ETFs showing a red background.  For example, a TSLO is in place to sell 5 shares of VB.

When shares are sold I will be purchasing shares in VWO, GLD, SCHD and VIG.  These four ETFs need special attention.

Pauling Performance Data

Since 12/31/2021 the Pauling is far behind the AOR benchmark.  During most of this period the portfolio was not operating under the current asset allocation mix.  Therefore, watch the direction or flow of the four risk ratios over the next few months.

Pauling Risk Ratios

Three of the four risk ratios are higher than they were a year ago.  The Information Ratio, a critical measurement, is below its March 2025 value, but above where this ratio stood back in November.

The Jensen Alpha is showing gradual improvement over the year and this is extremely important.

Beta: A Brief Description