Adaptive Allocation Portfolio F
for period ending April 30, 2023
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t.aaaf is the Recipe ID for this portfolio recipe. This Recipe ID appears in the scatterplots below and on the Summary Page showing all portfolio recipes. You can invest in this portfolio recipe using the Recipe Ingredients listed below at your favorite brokerage. See
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Risk vs. return for t.aaaf: The scatterplots below show the best portfolio recipes as dots closest to the green smiley the at top left of each scatterplot. The yellow dot shows the total return and risk for this portfolio recipe. The risk is measured by maximum loss over each period. Any dot closer to the top left corner has shown better performance using this metric.
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Maximum Drawdown vs. Annual Return
●t.aaaf●Peer group recipes●All other recipes●S&P 500 (SPY)●U.S. Bonds (BND)●Balanced (60% Equity / 40% Bonds)
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Description Adaptive Allocation Portfolio F gives investors access to a dynamic portfolio that uses an adaptive asset allocation algorithm that maximizes risk-adjusted return and responds to market conditions. This portfolio recipe uses exchange-traded funds and strives to achieve a favorable risk-adjusted return by minimizing volatility (as measured by standard deviation) while maximizing total return.
Category Tactical: DIY. This portfolio recipe is tactical (dynamic) and do-it-yourself.
Ingredients used This portfolio recipe invests in five exchange-traded funds (ETFs). These five ingredients are chosen from a set of 9 possible asset class ETFs. The percentage allocation (i.e., weighting) to each of these ETFs is selected using a dynamic allocation algorithm based on momentum and volatility.
Peer Group Tactical: DIY
- Tactical: This is a Tactical (i.e., dynamic, active) portfolio that is updated at the beginning of each calendar month. Tactical means that the ingredients and allocation to each ingredient can change every month. This portfolio recipe is updated monthly to reflect the new allocation.
- DIY: do-it-yourself. This is a do-it-yourself portfolio, which you can buy and update at your favorite brokerage. See How to Invest, below.
You can see how this recipe has performed compared to its peers by clicking on any "Rank: Group" link in the Compare sections, below.
Methodology This portfolio recipe is created using an adaptive algorithm that applies both momentum and volatility metrics to choose the ingredients and weightings for each of the five asset class ETFs in this portfolio recipe. Adaptive Allocation Portfolio F uses a tactical (also called "dynamic" or "active") asset allocation approach. This Folio is allowed to choose from 9 ETFs that represent major asset classes. The steps to create this portfolio are as follows:
- VizMetrics defines the set of possible asset classes that can be used as ingredients for this portfolio recipe. The 9 asset classes are as follows: U.S. Large Cap Equity, U.S. Small Cap Equity, NASDAQ 100 Equity, U.S. Real Estate, U.S. Long Term Treasury Bonds, Emerging Markets Equity, International Developed Markets Equity, Gold, and Commodities.
- VizMetrics chooses one ETF to represent each asset class, based on liquidity, history, and cost considerations. The ETFs chosen to represent the asset classes are as follows: SPY, IWM, QQQ, IYR, TLT, EEM, EFA, GLD, DBC.
- Each month, VizMetrics ranks the nine ETFs based on momentum over the past 180 days and chooses the top five ETFs.
- VizMetrics applies a percentage allocation to the chosen ETFs which minimizes the variance of the overall portfolio based on the last 20 trading days.
Cost Access to this portfolio recipe is included at no extra charge as part of your VizMetrics Investor subscription. You can invest in this portfolio recipe using the Recipe Ingredients listed below at your favorite brokerage. See
How to Invest, below.
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Once you have subscribed to VizMetrics Investor, you can invest using the recipe ingredients on this page to invest at your favorite brokerage. For details on how to invest using this portfolio recipe, see
How to Invest in a strategic portfolio
Update frequency: The recipe for this portfolio can change monthly. In other words, the ingredients and percentage allocation to each ingredient can change at the beginning of each month. Therefore, this portfolio requires a few minutes each month to buy or sell the ingredients to match the updated portfolio recipe.
Where to get the recipe updates&nsbp;&nsbp;This portfolio recipe is available to VizMetrics Investor subscribers.
Upgrade your subscription. After subscribing, the exact recipe (ingredient plus percentage allocation to each ingredient) appears on this page under a new section labelled "Recipe ingredients"
Rebalancing stepsYou need to update this portfolio each month to adhere to this portfolio's recipe. See
How to rebalance your portfolio for period ending April 30, 2023
Downside Deviation vs. Annual Return
●t.aaaf●Peer group recipes●All other recipes●S&P 500 (SPY)●U.S. Bonds (BND)●Balanced (60% Equity / 40% Bonds)
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●t.aaaf and the identities of all the
● portfolios on the 3, 5, 7, and 10 year graphs are available to subscribers only.
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Standard Deviation vs. Annual Return
●t.aaaf●Peer group recipes●All other recipes●S&P 500 (SPY)●U.S. Bonds (BND)●Balanced (60% Equity / 40% Bonds)
The location of
●t.aaaf and the identities of all the
● portfolios on the 3, 5, 7, and 10 year graphs are available to subscribers only.
Upgrade your subscription. Only $15 per month. Cancel anytime.
for period ending April 30, 2023
5-year graph ●t.aaaf●Global equities (ACWI)●U.S. equities (SPY)●U.S. bonds (BND)●60% Equity / 40% Bonds (s.6040)
for period ending April 30, 2023
for period ending April 30, 2023
| | 1 year | 3 year | 5 year | 7 year | 10 year | 15 year |
| to Global Stocks (ACWI) | 0.77 | 0.70 | 0.59 | 0.60 | 0.61 | 0.53 |
| to S&P500 (SPY) | 0.66 | 0.68 | 0.58 | 0.58 | 0.59 | 0.53 |
| to U.S. Bonds (BND) | 0.88 | 0.60 | 0.55 | 0.53 | 0.53 | 0.57 |
| to Commodities (DBC) | 0.47 | 0.47 | 0.38 | 0.36 | 0.27 | 0.28 |
| to Gold (GLD) | 0.87 | 0.58 | 0.53 | 0.52 | 0.45 | 0.44 |
