Re-balance Cycle Reminder All MyPlanIQ’s newsletters are archived here.

Regular AAC (Asset Allocation Composite), SAA and TAA portfolios are always rebalanced on the first trading day of a month. the next re-balance will be on Friday May 1, 2020.

Please note: As of March 1, 2020, we officially phased out our old rebalance calendar for both SAA and TAA. They are now always rebalanced on the first trading day of a month. 

As a reminder to expert users: advanced portfolios are still re-balanced based on their original re-balance schedules and they are not the same as those used in Strategic and Tactical Asset Allocation (SAA and TAA) portfolios of a plan.

Multi-Factor ETFs And Rotation

Previously we devoted several newsletters on factor ETFs and multi-factor ETFs as we believe key stock factors can indeed improve long term returns over a vanilla market capitalization based stock index such as S&P 500 index (SPY). Specifically, we believe the following four factors can be used to construct a better US stock portfolio (again, over a broad base index such as S&P 500): 

  • Value factor: invest stocks with lower valuation (i.e. cheaper)
  • Momentum factor: invest stocks with high price momentum
  • Quality factor: invest stocks with high quality (i.e. consistent profit) underlying business
  • Low Volatility factor: invest stocks with lower overall portfolio volatility when put together

Note: low volatility factor does NOT simply mean picking stocks with low volatility, instead, it’s to choose stocks to form a portfolio with low volatility. See October 14, 2019: Low Volatility Factor ETFs.

See, for example, October 28, 2019: Multi-factor ETFs vs. Equal Weight Multi-Factor Portfolios  for more details on these four factors. 

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