Oct 06
Passive Portfolio Analysis
Here is an example of an analysis for the Passive Portfolio, an account that has been in operation for nearly eight years. The portfolio holds the following investments with the respective target percentages.
- IVE = 14%
- IJJ = 15%
- VBR = 13%
- IVW = 13%
- VOT = 13%
- IJT = 5%
- EFA = 15%
- ICF = 5%
- EEM = 7%
The projected return for such a portfolio is 11.03% and the risk is 16.44%. I consider this risk to be too high and unacceptable. This issue is, what does one do about it? That is now part of the analysis. What ETFs should be replaced to maintain a return greater than 11% while reducing the standard deviation?
Lowell Herr
Premium Content subscriptions available for $6.99 per month.
Sphere: Related Content