Dec 02 2008
Passive Portfolio Update
One of several portfolio tracked over on the Premium Content side of the blog is one we title, Passive Portfolio or PP for short. This portfolio has operated since December 2000. As of November 28, 2008, PP dipped into negative territory for the first time as measured by month end statements. The IRR was -0.23% while the VTSMX benchmark for the same period was -3.61%. The past three months ripped up this portfolio. The Return/Risk ratio was still a remarkable 0.73. As you will recall, any value over zero is commendable. The 0.73 value is an excellent number and is due to the portfolio outperforming the benchmark with relatively low risk.
The details of this portfolio are contained in the PP.xls spreadsheet available through links provided on the Premium side of the blog. The portfolio is constructed using ETFs from Barclay. When PP was first started, Vanguard did not offer ETFs. Over time we picked up a few of Vanguard’s offerings, but the timing has been anything but stellar.
Lowell Herr
Photograph: Bratislava, Slovakia
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