Alternative Investment Portfolios Review
MyPlanIQ features a few alternative portfolios which combine tactical, strategic portfolios or consist of assets that can hedge with each other. We list some of those portfolios on Brokerage Investors (What We Do -> Brokerage Investors) . For last year’s review, please see January 25, 2016: Alternative Portfolios Review.
The following are some of the benefits why one should at least keep an eye on these portfolios:
- These portfolios often have lower volatility than the traditional strategic portfolios because of their hedged or uncorrelated components.
- These portfolios often are less in sync with general stock or bond market indexes. Thus, they can serve as a stabilizer in a traditional or mainstream strategic portfolio.
- These portfolios are conservative and thus can be used as an anchor when stock markets are way overvalued so that investors can ‘wait out’ till a correction comes to bring down the valuation level (and thus better investment environment)
Performance in 2016
|Ticker/Portfolio Name||2016 Return||1Yr AR||3Yr AR||5Yr AR||10Yr AR||10Yr Sharpe|
|My Simple Alternative Hedge Fund||6.5%||9.1%||3.8%||6.4%||8.5%||1.01|
|Harry Browne Permanent Portfolio||5.4%||5.2%||4.1%||3.0%||5.9%||0.77|
|Permanent Income Portfolio||5.2%||6.1%||5.3%||4.8%||5.6%||0.85|
|Bridgewater All Weather Portfolio Risk Parity||6.7%||7.8%||3.4%||2.8%||5.2%||1.21|
|Bridgewater All Weather Portfolio||8.0%||10.5%||3.9%||3.4%||5.9%||0.98|
|VWINX (Vanguard Wellesley Income Inv)||6.0%||9.9%||6.1%||7.0%||6.7%||0.93|
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