Ephesus, Turkey
It is rare for the Schwab computer to rebalance the Schrodinger portfolio, but that is exactly what happened last month. Go to this link and toggle back and forth between this morning’s investment quiver and last month to see the difference. The three new additions are: PRF, PRFZ, and PXF. Only one share of each has been added and that is somewhat surprising as these three ETFs combined will have little impact on the overall portfolio. When the Schrodinger was first launched the Robo Advisor computer held one or two shares of a few ETFs, but those were finally sold out of the portfolio. I consider these as shard holdings and I’m puzzled why Schwab insists in holding such a few shares in certain ETFs. Granted, this is a very small portfolio and it is likely managed as if it is a very large portfolio.
Schrodinger Investment Quiver and Holdings
Below is the current Schrodinger investment quiver and the holdings. In the far right column you will see the percentage held in each of the ETFs. PXF does provide a small exposure to emerging markets.
Schrodinger Performance Data
Over the past 16 months the Schrodinger has outperformed the S&P 500 (SPY) by a comfortable margin. The portfolio is also besting all other possible benchmarks I am currently tracking and this includes both AOA and AOR.
While I use SPY as the benchmark for the Schrodinger, I also use this portfolio as a benchmark for the other ITA portfolios as I am interested in knowing how well the other portfolio management models are performing vs. a computer managed portfolio. Those results are available when I post the performance comparison blog.
It is encouraging to see a computer managed portfolio outperform the S&P 500. My guess is that the Schrodinger will fall behind SPY in a strong bull market, but perform better than SPY in a weak market – and we were in a weak market in 2022.
Schrodinger Risk Ratios
It is still much too early in May to make any comparisons with April so look over the data from last May through April of 2023. There has been some slippage in both the Jensen Performance Index and the Information Ratio.
The Elements of Investing: Part II
Schrodinger Interim Update: 19 October 2022
The Schrodinger is now free to all who register as a Guest. Let your family members and friends know about this blog site.
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