Here we are at the end of May and the passively managed Schrodinger is up for review. We last purchased ETFs in March when shares of DBC, RWX, and VEA were added to the portfolio to bring several asset classes back into balance. Right now Commodities (DBC or DBA) is the only asset class running below target.
Schrodinger Dashboard: The following Strategic Asset Allocation has been in effect for many months. Without including any May dividends, the Schrodinger is trailing the VTSMX by 0.2% (-0.2%) annualized over the last 14 years. The Internal Rate of Return (IRR) for the Schrodinger is beating the ITA Index by 1.0% annualized. Both are respectable performance records over a turbulent period.
Rebalancing Table: The following table shows how many shares of the critical ETFs are required to bring the asset classes back into exact balance. Do remember that adjusting one asset class will throw the others off by a little so it is nearly impossible to have all asset classes exactly matching the target percentages. The Schrodinger will now go into “neglect” mode for another 33 days.