All sails are flying as the Einstein is fully invested. Check the Dashboard or Strategic Asset Allocation plan below to see how the portfolio is set up. The Einstein is not one of the ITARR model portfolios – otherwise developed international markets (VEU) and emerging markets (VWO) are two asset classes that would be under target.
Dashboard: Thirty-eight percent of the Einstein is allocated to the U.S. Equities market. This is a little higher than I prefer so I will slowly reduce this percentage over the next several months. When one of the “Big Nine” is a little below target, I will shift the percentage to other asset classes. One up for increase is domestic real estate (VNQ). I also plan to push international REITs up to 5%. This should increase the yield for the Einstein. Other than a few tweaks here and there, this portfolio is in good shape.
Portfolio Performance: As for performance, the Einstein is outperforming its benchmark by 1.1% points. All the risk ratios are positive. These are: Information Ratio (IR), Sortino Ratio (SR), and Retirement Ratio (RR). If you are unfamiliar with these risk measurements, just search for them on ITA Wealth Management.
The next goal for this portfolio is to improve the IRR to where it outperforms the VTSMX index fund. That is not going to be an easy task considering the percentage now allocated to bonds and income.
The Einstein will go into “neglect” mode for another month as there appears to be little to do before the next review.