Simple Global Portfolio as IRA Risk Reduction Core

ITA Risk Reduction Portfolio

Over the last few weeks, I've discussed a risk reducing portfolio consisting of seven ETFs.  They are: VTI, IWN, VEU, VWO, VNQ, RWX, and IGE.  While this combination provides global exposure, there are inherent risks.  While the projected return is a robust 9.7%, we take on a high degree of uncertainty to reach this return.  The projected standard deviation is a very high 20.8%.  If we implement the ITA Risk Reduction model, taking on this volatility is more acceptable.

The Diversification Metric is quite low and this is to be expected considering the limited number of holdings and no bonds in the mix.

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Kepler Portfolio Review: 19 November 2011

I'm still scrambling to update all the programs that were lost due to a computer crash.  This is one of the reasons for the rash of portfolio updates.  The Kepler was scheduled for updating next week, but if the coming week is as volatile as I assume, another update may be required.  As usual, we begin with a look at the Dashboard, shown in the screen shot below. 

Platinum membership available for $5.00 per month through 2011.  Current membership fees will not change.

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Portfolio Performance Data: 18 November 2011

The following data table speaks to what ITA Wealth Management is all about.  The performance of the 21 portfolios comes from live and operating portfolios.  None are virtual or fictitious portfolios.  Platinum members have access to all the transactions for eight (8) of the portfolios tracked using the TLH Spreadsheet.

These portfolios belong to a variety of individuals and I have the responsibility of watching over them or giving the owner guidance.  I am not a money manager and have not actively managed money for individuals since the late 1980s.  This blog is showing readers what I am doing with specific portfolios.

Portfolio Performance - 11/18/2011

Portfolio Last Update Launch Date Tracking Tool Port. IRR ITA Index Diff Port. vs. ITA Index VTSMX IRR Diff. Port. vs. VTSMX Index IR SR RR
AA-Mosaic 10/31/2011 07/21/1999 Captool 2.35% NA NA 2.0% 0.35% 0.05 NA NA
Curie 11/18/2011 12/26/2007 TLH SS 3.0% -1.8% 4.8% -0.6% 3.6% NA 6.2 -3.4
Mosaic2 10/31/2011 07/19/1999 Captool 4.62% NA NA 1.84% 2.78% 0.16 NA NA
Newton 11/18/2011 06/02/2008 TLH SS 6.5% 2.6% 3.9% 4.2% 2.3% NA 1.7 0.4
Passive Port. 10/31/2011 12/01/2000 Captool 4.5% NA NA 2.22% 2.28% 0.68 NA NA
Schrodinger 11/18/2011 12/01/2000 TLH SS 4.0% 1.8% 2.2% 2.3% 1.8% NA 13.9 -6.8
Jane 10/31/2011 02/14/1997 Captool 8.46% NA NA 5.24% 3.22% 0.54 NA NA
Einstein 11/18//2011 06/30/2008 TLH SS 8.4% 5.5% 3.0% 6.7% 1.8% NA 0.7 0.7
Gauss 10/31/2011 02/19/1997 Captool 8.61% NA NA 5.2% 3.4% 0.23 NA NA
Kepler 11/18/2011 11/01/2008 TLH SS 12.1% 11.6% 0.5% 12.9% -0.8% NA -0.34 -0.34
Scrappy 10/31/2011 08/14/2008 Captool 8.96% NA NA -0.35% 9.31% NA NA NA
Bohr 11/18/2011 08/14/2008 TLH SS 7.6% 7.1% 0.5% 2.5% 5.1% NA 2.9 1.6
Kenilworth 11/18/2011 08/18/2010 TLH SS -2.0% -0.9% -1.1% 1.5% -3.5% NA -0.02 -0.06
Franklin 11/18/2011 05/6/2011 TLH SS -9.6% -15.0% 5.3% -16.3% 6.6% NA 0.04* -0.10*
Projects 10/31/2011 12/01/2000 Captool 5.04% NA NA 2.22% 2.82% 1.26 NA NA
Washington 10/31/2011 06/18/1999 Captool 2.89% NA NA 2.03% 0.86% 0.28 NA NA
Maxwell 11/18/2011 12/25/2000 TLH SS 0.0% 1.7% -1.7% 3.2% -3.2% NA -0.10 -0.16
Adams 10/31/2011 06/18/1999 Captool 3.5% NA NA 2.03% 1.47% 0.73 NA NA
Euclid 11/18/2011 06/30/1999 TLH SS 0.8% -3.5% 4.2% 3.2% -2.4% NA -0.11 -0.18
Jefferson 10/31/2011 06/13/2006 Captool 4.79% NA NA -0.36% 5.15% NA NA NA
Madison 11/18/2011 03/13/2008 TLH SS -1.1% -2.7% 1.6% 4.7% -5.8% NA -0.23 -0.24

This past week was another volatile five days.  Yet all but two portfolios gained ground on the VTSMX or held even.  Details are posted below.

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