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.