Beatingthebenchmark manages a few different portfolios, all with the goal of beating the benchmark. One of those portfolio’s is our passive US portfolio. . . . . we call it passive because we make two trades adjustments each year based on historical sector rotation. In Nov. – April we overweight more offensive sectors (Discretionary, Industrials, Basic Materials) while in May – October we overweight more defensive sectors (Consumer Staples, Healthcare).
Below is the basic passive U.S. equity portfolio. This portfolio is beating it’s benchmark (the S&P 500) by .09%. (We don’t call ourselves beatingthebenchmark for nothing!) As you look at the table below there are a few things to be aware of . . .
- The time frame is Nov. 1 – Dec. 27. This means we will not adjust the portfolio again until the end of April. We believe (although we don’t know for sure . . . no one does) the spread of .09% will become even greater in the coming months.
- The core U.S. portfolio is made up of the S&P 500 ETF, SPY. We underweight that core position so that we can overweight the certain sectors we believe will outperform.
- Industrials is the reason we are beatingthebenchmark. It’s outperforming the S&P 500 by 1.72%.
In the coming months we will allow visitors of beatingthebenchmark.com the ability to see all of our portfolios. Our goal is to help individuals beat the benchmark on their own . . . or at the very least find the help they need to accomplish their financial goals.