Oct 21
Portfolio #1: Aggressive Portfolio Analysis
The first of five sample portfolios found in Tom Lydon and John F. Wasik’s book, iMoney: Profitable ETF Strategies for Every Investor is an aggressive portfolio. Below are the holdings and target percentages.
- SPY = 10%
- VO = 15%
- IWM = 15%
- QQQQ = 10%
- EFA = 20%
- EEM = 10%
- EEB = 5%
- ILF = 10%
- TLT = 5%
Running an analysis on this portfolio we have the following.
- Projected Return (using three-year data) = 10.58%
- Standard Deviation (SD) = 18.6%
- Portfolio Autocorrelation (PA) = 44.3%
- Diversification Metric (DM) = 20%
- R^2 = 92.3%
We can improve these values with a different asset mix.
Lowell Herr
Photograph: Eze, France
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