Sunday, August 6, 2017

Core Portfolio (4 Aug 17)

A long-term investment that forms the foundation of an investor’s portfolio.  A core portfolio strategy is to primarily own an investment that tracks the overall market.  A solid core holding gives an investor the flexibility to take a chance with riskier investments in other areas of the portfolio.

Calendar
Year
S&P 500
(UPRO)
Nasdaq 100
(TQQQ)
Russell 2000
(URTY)
Volatility
(XIV)
2017
35.4%
74.1%
9.2%
101.7%
2016
30.8%
11.4%
60.1%
81.2%
2015
-5.2%
17.2%
-21.0%
-17.1%
2014
38.0%
57.1%
5.9%
-9.4%
2013
118.5%
139.7%
147.9%
107.2%
2012
46.8%
52.3%
44.6%
154.9%
2011
-11.9%
-8.0%
-37.6%
-45.5%
2010
36.3%
78.1%
90.1%
24.9%
Avg Ret.
36.1%
52.7%
37.4%
49.7%
 
A properly constructed core portfolio of leveraged ETFs will tend to outperform the benchmarks.  A core portfolio strategy also results in a portfolio that is easy to monitor and rebalance because it only contains a few investments.

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