Portfolio Review: Schrodinger Update – June 16, 2011

Schrodinger Portfolio Review

It is time to review the Schrodinger Portfolio, perhaps the most "passively" managed portfolio tracked here at ITA Wealth Management.  We still hold ETFs purchased back in late 2000 and early 2001.  The asset allocation plan has changed very little over the ten plus years of operation.  During this period a few iShares were sold as we moved assets over to lower cost Vanguard ETFs representing the same asset classes.

Below is the current Schrodinger Dashboard. I reduced the Threshold percentage from 25% to 20% and we will see the asset classes are in balance with exception of bond & income.  Threshold is the percentage target limits used.  For example, take the International Investments asset class where we allocate 15% of the total portfolio.  So long as our investments in this asset class stay within 0.15 x 0.20 = 0.03 or 3% to the upside or downside, we say the asset class is in balance.  Therefore our target limits range from 12% on the low side to 18% on the high side.

On the Dashboard worksheet of each TLH Spreadsheet we show a Rebalancing box.  This data box provides a quick look as to how many shares are required of the representative ETF for each asset class.  I think I laid out what is meant by a representative ETF, but I should present that again for interested readers.  Check out the rebalancing box in the following slide or screen shot.

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Portfolio Review: Curie Update

Curie Portfolio Update

Other than recording June dividends, none of the 17 limit orders were activated this month. Current dips in the market were insufficient to trigger any orders I set for the Curie Portfolio.  Based on analysis such as one sees in this article, I think we need a good 10% correction to reel in all the limit orders set for this portfolio.

Below is the Dashboard for the Curie Portfolio.  The asset allocation plan needs attention and I've set limit orders in place to bring the under target classes back into balance.  It is now an issue of being patient, something that is difficult to be.

When updating a portfolio, here are a few of the steps I go through.

  • I check the broker statement to see what action, such as dividends, I need to enter into the TLH Spreadsheet. 
  • Prices are updated in the spreadsheet.
  • I open the Dashboard as shown above.  What asset classes are out of the target ranges and do I have orders set to fill the asset classes. If the asset class is above target, as it is for Bonds & Income, do I have sell orders in place.  Note that I rarely use market orders.  Instead, I set limit orders.
  • For a complete analysis, I will enter the tickers and percentages into the Quantext Portfolio Planner software and run a complete analysis.  This includes the Delta analysis referred to in the Seeking Alpha article referenced above.

Platinum membership is available for $5.00 per month. 

 

Below is the performance data for the Curie Portfolio.  Note the commanding lead over both the VTSMX and ITA Index benchmarks.

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