Portfolio Mix

Jul 19, 2020 10 Comments

I started looking at various portfolio mixes in this website
https://portfoliocharts.com/portfolios/

Eventually I got to this
40% in FNILX (S&P 500 fund)
20% in VCLT (Long term Corporate Bonds)
20% in IAU (Gold)
20% in VNQ (Real Estate)

Here's how the numbers look to me based of recent data from yahoo finance

ETF 1YR 3YR 5YR 10YR
VOO/FNILX (40%) 7.34 10.62 10.66 7.3
VNQ (20%) -6.88 2.18 5.36 9.67
VCLT (20%) 13.97 8.84 9 7.84
IAU (20%) 25.85 12.48 8.42 3.39
Avg Rate of Return 9.52 8.94 8.82 7.112
I would love to hear if there are any negative thoughts or gaps on this portfolio. it is designed to work in all scenarios similar to Ray Dalio’s All-Weather portfolio mix

30.00% US Total Stock Market (VTI)
40.00% Long Term Treasuries (TLT)
15.00% Intermediate-Term Treasuries (VGIT)
7.50% Commodities (DBC / GSG)
7.50% Gold (IAU)

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TOP 10 Comments
  • Uber / Eng
    b!tch

    Go to company page Uber Eng

    PRE
    Ellation
    b!tch
    I'm very much new to this. I have about 500k that I want to invest in some portfolio. Where should I start. Taking a look at the link above seems like there is some learning curve on portfolio management. Is there some good resource to look at if I want to manage my own portfolio.
    Jul 20, 2020 3
  • Currently, I am 50% tech stocks and 50% gold and gold miners. I will rotate some of my position into REIT, commodities and violility when the time comes

    Unless Fed impose negative interest rate, bond won't generate any meaningful capital gain.

    How you heard of Dragon Profilio?

    It is 20% each on stock, bond, gold, commodity and violility. It has better return than Ray Dalio. The only problem is hard for retail investors to long commodities and violility.
    Jul 20, 2020 2
  • Curious what your logic was for going with corporate bonds instead of treasuries? Also, what was the thinking behind a larger gold allocation?
    Jul 19, 2020 2
    • There is no much up side left in treasuries with virtually no yield. It is just return free risk if inflation hits. Same problem for corporate bonds. AA or above has no meaningful yield, junk is too high risk, might as well buy stocks.

      Gold take the place of treasuries. If negative interest rate, gold will go up. If inflation, gold will go up. If deflation, gold stay flat but everything else drops. It is a good hedge against the equity bubble.
      Jul 20, 2020
    • The yield in treasuries suck. VCLT is a better performing bond. Yes corporations are riskier than treasury but it’s diversified across numerous companies
      Jul 20, 2020