As the oldest passively managed portfolio, the Schrodinger portfolio takes on particular significance for users of this Strategic Asset Allocation approach. As reader can see below, all asset classes are withing the target ranges, but Developed International Equities needs more shares to bring it closer to target. Both screenshots come from the Dashboard worksheet which is part of the TLH Spreadsheet.
Schrodinger Dashboard: While the Schrodinger attempts to capture the small-cap and value anomalies of the market, these two factors continue to wane in importance.
The one asset classes that needs attention is Developed International Equities as it currently holds 11.1% and the target is 15%. The plan is to buy more shares of VEA once cash becomes available.
Rebalancing Table: The following table shows the “critical ETFs” used for the different asset classes and how many shares need to be sold or purchased to bring the asset class in line with the target percentage. For example, if we sell 13 shares of VTV, Large-Cap Value will hit its 7.0% target. We are not interest so much in hitting exact target percentages, but rather staying within the target limits. I am currently using +/- 30% as the target limits so it is rather high.
