Protective Asset Allocation Strategy Explanation Video
This strategy invests in the asset classes with the highest momentum using a selection universe of 12 ETFs. The asset classes covered are the S&P 500, the Russell 2000, the NASDAQ 100, European Equities, Japanese Equities, emerging market equities, long-term treasury bonds, high yield bonds, corporate bonds, commodities, gold, and real estate. The strategy will invest in the 6 asset classes with the strongest momentum on each rebalancing date. It will also move toward a crash protection asset (short or intermediate-term bonds) as the number of asset classes that are in a downtrend rises. Once more than half the assets in the selection universe are in a downtrend, the portfolio will invest 100% of its value in the crash protection asset.
Since 2006, this portfolio has returned 7.6% per year, outperforming its benchmark by 1.1%
Year | Portfolio | 60/40 |
2007 | 18.0% | 6.0% |
2008 | 14.7% | -21.0% |
2009 | -0.1% | 17.3% |
2010 | 20.0% | 11.7% |
2011 | 0.4% | 5.0% |
Year | Portfolio | 60/40 |
2012 | 4.8% | 11.0% |
2013 | 9.0% | 17.5% |
2014 | 5.2% | 10.5% |
2015 | 1.4% | 1.1% |
2016 | 6.6% | 8.3% |
Year | Portfolio | 60/40 |
2017 | 16.2% | 14.2% |
2018 | 3.1% | -2.3% |
2019 | 10.9% | 22.0% |
2020 | 6.5% | 14.3% |
2021 | 14.7% | 16.3% |
2022 YTD | -6.0% | -16.9% |