Portfolio Performance Comparison (as of 10/3/2012)

Portfolio/Fund NameYTD
Return**
1Yr AR1Yr Sharpe3Yr AR3Yr Sharpe5Yr AR5Yr Sharpe10Yr AR10Yr Sharpe
David Swensen Six ETF Asset Individual Investor Plan Strategic Asset Allocation – Equal Weight Moderate9.0%18.7%177.7%11.0%88.6%4.0%19.9%8.8%53.3%
David Swensen Six ETF Asset Individual Investor Plan Tactical Asset Allocation Moderate6.0%6.1%98.2%10.7%100.4%6.0%51.1%9.6%80.6%
FundAdvice Ultimate Buy and Hold Lazy Portfolio Strategic Asset Allocation – Equal Weight Moderate8.9%16.6%127.0%8.2%59.3%2.9%14.9%9.6%60.0%
FundAdvice Ultimate Buy and Hold Lazy Portfolio Tactical Asset Allocation Moderate4.8%5.8%106.2%8.2%78.1%5.7%55.2%10.9%104.3%
Israelsen 7Twelve Strategic Asset Allocation – Equal Weight Moderate7.4%13.3%118.1%9.4%78.7%4.0%21.6%9.1%58.5%
Israelsen 7Twelve Tactical Asset Allocation Moderate7.1%8.4%144.2%6.9%68.0%6.6%55.1%10.6%89.3%
Permanent Portfolio ETF Plan Strategic Asset Allocation – Equal Weight Moderate9.3%14.9%141.6%13.5%120.7%7.4%46.3%10.5%75.1%
Permanent Portfolio ETF Plan Tactical Asset Allocation Moderate3.9%5.6%112.0%10.6%97.1%7.3%64.6%7.9%72.2%
The Coffee House Lazy Portfolio ETF Version Strategic Asset Allocation – Equal Weight Moderate8.9%19.1%166.7%10.6%76.5%3.2%14.2%8.0%43.6%
The Coffee House Lazy Portfolio ETF Version Tactical Asset Allocation Moderate5.1%5.0%97.0%9.7%88.2%6.7%66.0%7.6%73.4%
Wasik Nano Plan Strategic Asset Allocation – Equal Weight Moderate9.1%17.6%150.5%10.3%82.7%2.7%12.3%7.6%43.6%
Wasik Nano Plan Tactical Asset Allocation Moderate6.8%8.1%158.1%9.7%96.3%5.1%48.6%8.3%81.6%

*: NOT annualized

**YTD: Year to Date

See latest year by year detailed comparison here>>

This again begs the question: will such an out performance (or under performance from TAA’s point of view) will continue in the future?

Strategic Or Tactical? 

So should one write off the tactical strategies again? Well, not so fast.

First, if you look at longer term performance, tactical portfolios did perform better, especially in 2008 and 2001-2002. This is not surprising as tactical allocation tries to step through a bear market more carefully.

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