ITA Wealth Management readers checking the latest Portfolio Performance* data table will observe that the Madison Portfolio is lagging the VTSMX benchmark. In an effort to push this portfolio performance to a higher level, I am going to employ the ITA Risk Reduction (ITARR) model, or the same one being used for the Maxwell and Euclid portfolios. This will require selling some current ETFs in an effort to reposition the asset allocation plan. The new Strategic Asset Allocation plan is built around specific ETFs instead of finding ETFs to fill asset classes as we normally do. In the first screen shot I show the new allocation plan and in the second slide is the QPP analysis for this newly configured portfolio. The third slide shows how including SDS in the allocation plan impacts projected return, projected volatility, and diversification.
Platinum membership is available for $5.00 per month. Learn about the Risk Reduction model.