July 30, 2012: Strategic Asset Allocation & Lazy Portfolios Review

by | Jul 31, 2012 | Feature, Headline, Inv, Investments, newsletter | 0 comments

Portfolio Performance Comparison (as of 7/30/2012)

Portfolio/Fund Name1 Week
Return*		YTD
Return**		1Yr AR1Yr Sharpe3Yr AR3Yr Sharpe5Yr AR5Yr Sharpe
7Twelve Original Portfolio2.0%5.3%-1.7%-11.7%10.6%70.2%2.9%13.4%
David Swensen Six ETF Asset Individual Investor Plan Strategic Asset Allocation Moderate1.7%7.9%6.8%50.0%12.9%103.0%5.1%25.9%
Fund Advice Ultimate Buy and Hold Lazy Portfolio1.9%5.9%1.6%10.0%9.4%76.8%3.0%16.1%
FundAdvice Ultimate Buy and Hold Lazy Portfolio Strategic Asset Allocation Moderate1.8%6.8%1.4%9.0%10.0%78.9%3.7%18.8%
Harry Browne Permanent Portfolio1.1%5.4%9.6%133.7%12.5%182.7%9.0%104.9%
Israelsen 7Twelve Strategic Asset Allocation Moderate1.8%5.2%0.7%7.6%10.9%90.2%4.7%26.0%
P David Swensen Yale Individual Investor Portfolio Annual Rebalancing1.7%9.2%8.1%55.7%15.0%113.0%5.1%24.1%
Permanent Portfolio ETF Plan Strategic Asset Allocation Moderate1.5%6.5%1.9%10.1%15.2%124.8%8.0%49.1%
The Coffee House Lazy Portfolio ETF Version Strategic Asset Allocation Moderate1.7%7.5%2.9%17.7%12.7%90.5%4.2%18.6%
The Coffee House Lazy Portfolio ETFs1.4%7.1%4.8%32.8%12.3%98.9%4.5%25.2%
Wasik Nano Plan Strategic Asset Allocation Moderate1.6%7.5%4.5%30.0%12.5%95.1%3.6%17.2%
Wasik`s Nano1.6%7.9%4.3%28.9%11.7%90.2%2.7%12.8%

*: NOT annualized

**YTD: Year to Date

The latest detailed comparison link>>

Readers are advised that some of portfolios might have different risk profile. For example, Swensen’s lazy portfolio has only 30% in fixed income. Readers should take this factor into account for the above performance results. Furthermore, some portfolios are using ETFs and others are using mutual funds. This again can cause some inaccuracy for the comparison. 

As a side note, MyPlanIQ SAA portfolios usually outperform their original lazy portfolio counterparts. This is especially true for longer period of time. Readers are encouraged to look at the latest detailed comparison link to compare the results for longer periods such as since inception. This is again indicate that  MyPlanIQ’s fund selection improve performance. For example, in MyPlanIQ SAA, all four funds in US stocks for FundAdvice lazy portfolio belong to the same major asset, US stocks. At a monthly rebalance time, two out of these four funds are selected. Effectively, MyPlanIQ’s fund selection serves as fund rotation for US stock funds in this portfolio. 

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