The current overall annual dividends rate of the portfolio is 8.7%.
Sorry whats the total return out of interest? No point having 8.7% in dividends if your portfolio is i.e down 16% YOY. That's a -7.30% return for example.
One needs to consider total return i.e Capital Gains + Dividends to get full picture. Otherwise your chasing Nickels and losing dollars.
If referring to my comment, we're up roughly ~400% since June 2022 lows.This seems like a good way to get poor returns in good times, and negative returns in bad times. How did this mix perform during times of recession?
Wow, proper returns. Well done!If referring to my comment, we're up roughly ~400% since June 2022 lows.
It's managed (in-house AI quant ~ and staff), I can't recall a bad year since established the treasury fund, one thing i will note it's sole purpose was established to outperform currency debasement.
View attachment 5766
that's of course marked to the market as I've not sold anything and I don't plan to sell any time soon
I use SPY only to balance SPYIi.e all of SPY's 502 or so holdings are already in VT.
Downside deviation: 1.89%Are you able to show the volatility value of your portfolio out of interest?
Weighting is an important part of a portfolioBtw out of interest I put all your positions (accept VT and VZ as both missing) through portfoliovisulizer to get some insight and to backtest it. I applied equal weighting to each position for simplicity purposes.
Of course it’s not like that if you use the proper weights. You can see I hold China and India, as well as small caps.Your underlying holdings of your portfolio has over 30% of it exposed to Financial Services. A 45% US stock weighting. 62% large cap exposure which is not bad.
Where do you see the junk bonds?On fixed income side you have 66% exposure to non-investment grade bonds aka junk bonds shall we say.
I’m fine with that.But all in all taking into account the missing two positions I could not include it all looks good with an inflation adjusted return of 3.72%
Where do you see the junk bonds?
| Name | Weight |
|---|---|
| AAA | 0.85% |
| BAA3 | 0.53% |
| BA1 | 9.41% |
| BA2 | 14.41% |
| BA3 | 21.61% |
| B1 | 15.40% |
| B2 | 14.62% |
| B3 | 11.26% |
| CAA1 | 4.94% |
| CAA2 | 5.29% |
| CAA3 | 1.08% |
| CCC or Lower | 0.16% |
| Not Rated | 0.46% |
Ok but those are not 66% of my portfolio. SPHY is performing well for what it is.i.e SPHY which is "SPDR High Yield ETF" aka complete junk bonds of non-investment quality and purely speculative value.
P.S They even refer to it as buying junk in their literature....lol.
https://www.ssga.com/us/en/intermediary/etfs/funds/spdr-portfolio-high-yield-bond-etf-sphy
The ratings of the bonds in SPHY breaks down as below. Next to no investment grade bonds in there. Personally I would switch to short duration U.S treasury ETF fund which may offer a decent return maybe 5% dividend vs 8.48% dividend but a better overall Total Return. I have not looked into it yet however.
Name Weight AAA 0.85% BAA3 0.53% BA1 9.41% BA2 14.41% BA3 21.61% B1 15.40% B2 14.62% B3 11.26% CAA1 4.94% CAA2 5.29% CAA3 1.08% CCC or Lower 0.16% Not Rated 0.46%
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I would just sit and wait.Basically if a Great Recession type of event would happen again you would be in major trouble.
Yes I suck at beating the SPY, which btw is not what I want to do.And 8% returns is really quite terrible for a year where the SPY returned +20%.
I don’t hold any junk bonds, I hold SPHY and I believe Spdr knows better than me (plus I don’t have $3b to properly diversify like they do).To add to this, this strat returns less dividend than Altria. All the stuff you have in junk bonds is better of in a bet that people will keep smoking, or people in the East will buy more expensive cigarettes if you would ask me.
Everybody does.Yes I suck at beating the SPY
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