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Paul Merriman Ultimate Portfolio

Last updated Nov 28, 2023

The Ultimate Portfolio is a lazy portfolio by Paul Merriman, a financial educator, founder of Merriman, LLC. The portfolio consists of 10 asset classes, 10% each with a tilt to small-cap and value stocks.

Asset Allocation


VTV 10%VIOV 10%VV 10%VEU 10%VIOO 10%VWO 10%EFV 10%DLS 10%VSS 10%VNQ 10%EquityEquityReal EstateReal Estate
PositionCategory/SectorWeight
VTV
Vanguard Value ETF
Large Cap Value Equities10%
VIOV
Vanguard S&P Small-Cap 600 Value ETF
Small Cap Blend Equities10%
VV
Vanguard Large-Cap ETF
Large Cap Growth Equities10%
VEU
Vanguard FTSE All-World ex-US ETF
Foreign Large Cap Equities10%
VIOO
Vanguard S&P Small-Cap 600 ETF
Small Cap Blend Equities10%
VWO
Vanguard FTSE Emerging Markets ETF
Emerging Markets Equities10%
EFV
iShares MSCI EAFE Value ETF
Foreign Large Cap Equities10%
DLS
WisdomTree International SmallCap Dividend
Foreign Small & Mid Cap Equities, Dividend10%
VSS
Vanguard FTSE All-World ex-US Small-Cap ETF
Foreign Small & Mid Cap Equities10%
VNQ
Vanguard Real Estate ETF
REIT10%

Performance

The chart shows the growth of an initial investment of $10,000 in Paul Merriman Ultimate Portfolio, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced Quarterly


150.00%200.00%250.00%300.00%JuneJulyAugustSeptemberOctoberNovember
172.75%
312.11%
Paul Merriman Ultimate Portfolio
Benchmark (^GSPC)
Portfolio components

The earliest data available for this chart is Sep 9, 2010, corresponding to the inception date of VIOV

Returns

As of Nov 28, 2023, the Paul Merriman Ultimate Portfolio returned 7.11% Year-To-Date and 5.97% of annualized return in the last 10 years.


Year-To-Date1 month6 months1 year5 years (annualized)10 years (annualized)
^GSPC
N/AN/AN/AN/AN/AN/A
Paul Merriman Ultimate Portfolio7.11%9.58%4.17%4.67%5.74%5.97%
VTV
Vanguard Value ETF
2.97%7.58%5.81%0.36%8.44%9.32%
VIOV
Vanguard S&P Small-Cap 600 Value ETF
0.92%10.43%2.17%-5.13%5.59%6.85%
VV
Vanguard Large-Cap ETF
21.11%10.97%9.53%15.62%12.51%11.67%
VEU
Vanguard FTSE All-World ex-US ETF
10.07%9.24%2.60%9.51%5.13%3.72%
VIOO
Vanguard S&P Small-Cap 600 ETF
2.67%9.54%2.87%-3.49%5.63%7.45%
VWO
Vanguard FTSE Emerging Markets ETF
5.17%6.96%2.80%7.44%3.11%2.52%
EFV
iShares MSCI EAFE Value ETF
12.80%8.16%6.33%13.57%4.56%2.65%
DLS
WisdomTree International SmallCap Dividend
7.02%10.07%3.03%6.34%2.05%3.17%
VSS
Vanguard FTSE All-World ex-US Small-Cap ETF
8.43%10.50%2.92%6.99%4.19%3.48%
VNQ
Vanguard Real Estate ETF
0.10%12.35%3.08%-3.81%3.48%6.22%

Monthly Returns Heatmap


JanFebMarAprMayJunJulAugSepOctNovDec
20230.70%-3.34%5.76%4.32%-3.69%-4.19%-3.92%

Sharpe Ratio

The current Paul Merriman Ultimate Portfolio Sharpe ratio is 0.36. A Sharpe ratio between 0 and 1.0 is considered sub-optimal.

-1.000.001.002.003.000.36

The Sharpe ratio of Paul Merriman Ultimate Portfolio is in the bottom 25%, suggesting that this portfolio isn't performing as well in terms of risk-adjusted returns compared to many others. This could be due to lower returns, higher volatility, or both. It might be an indication that the portfolio needs fine-tuning.


Rolling 12-month Sharpe Ratio0.000.501.00JuneJulyAugustSeptemberOctoberNovember
0.36
0.91
Paul Merriman Ultimate Portfolio
Benchmark (^GSPC)
Portfolio components

Dividend yield

Paul Merriman Ultimate Portfolio granted a 2.94% dividend yield in the last twelve months.


TTM20222021202020192018201720162015201420132012
Paul Merriman Ultimate Portfolio2.94%3.01%2.44%2.12%2.82%2.98%2.50%2.63%2.62%2.75%2.52%2.66%
VTV
Vanguard Value ETF
2.60%2.52%2.15%2.56%2.50%2.73%2.29%2.44%2.60%2.22%2.21%2.73%
VIOV
Vanguard S&P Small-Cap 600 Value ETF
1.95%1.81%1.59%1.42%1.60%1.76%1.43%1.17%1.32%1.27%0.91%1.31%
VV
Vanguard Large-Cap ETF
1.44%1.66%1.19%1.46%1.81%2.09%1.75%1.98%1.96%1.77%1.75%2.12%
VEU
Vanguard FTSE All-World ex-US ETF
3.03%3.12%3.08%2.00%3.10%3.27%2.66%2.96%2.95%3.52%2.66%2.94%
VIOO
Vanguard S&P Small-Cap 600 ETF
1.47%1.51%1.16%1.09%1.37%1.32%1.11%0.95%1.26%1.06%0.86%1.45%
VWO
Vanguard FTSE Emerging Markets ETF
3.01%4.11%2.63%1.91%3.23%2.88%2.30%2.52%3.26%2.86%2.73%2.19%
EFV
iShares MSCI EAFE Value ETF
3.68%4.17%4.07%2.42%4.62%4.56%3.56%3.28%3.59%4.87%3.19%3.77%
DLS
WisdomTree International SmallCap Dividend
4.70%4.96%3.29%2.50%3.37%3.66%2.79%3.29%2.72%3.61%3.89%3.56%
VSS
Vanguard FTSE All-World ex-US Small-Cap ETF
3.08%2.30%2.74%1.90%3.25%2.80%2.83%2.93%2.66%2.67%2.71%2.98%
VNQ
Vanguard Real Estate ETF
4.48%3.91%2.56%3.93%3.39%4.74%4.23%4.82%3.92%3.60%4.32%3.56%

Expense Ratio

The Paul Merriman Ultimate Portfolio features an expense ratio of 0.16%, falling within the medium range. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.


0.58%
0.00%2.15%
0.39%
0.00%2.15%
0.15%
0.00%2.15%
0.12%
0.00%2.15%
0.10%
0.00%2.15%
0.08%
0.00%2.15%
0.07%
0.00%2.15%
0.04%
0.00%2.15%
0.04%
0.00%2.15%

Risk-Adjusted Performance

This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.


Sharpe ratioSortino ratioOmega ratioCalmar ratioUlcer Index
VTV
Vanguard Value ETF
0.05
VIOV
Vanguard S&P Small-Cap 600 Value ETF
-0.23
VV
Vanguard Large-Cap ETF
1.08
VEU
Vanguard FTSE All-World ex-US ETF
0.72
VIOO
Vanguard S&P Small-Cap 600 ETF
-0.17
VWO
Vanguard FTSE Emerging Markets ETF
0.48
EFV
iShares MSCI EAFE Value ETF
1.01
DLS
WisdomTree International SmallCap Dividend
0.51
VSS
Vanguard FTSE All-World ex-US Small-Cap ETF
0.52
VNQ
Vanguard Real Estate ETF
-0.16

Asset Correlations Table

The table below displays the correlation coefficients between the individual components of the portfolio, the entire portfolio, and the chosen benchmark.

VNQVIOVVWOVIOOVTVDLSVVEFVVSSVEU
VNQ1.000.570.480.600.640.550.650.540.550.56
VIOV0.571.000.580.920.790.650.750.680.670.68
VWO0.480.581.000.610.680.780.720.770.850.89
VIOO0.600.920.611.000.820.680.810.710.710.71
VTV0.640.790.680.821.000.760.910.810.770.80
DLS0.550.650.780.680.761.000.780.920.940.93
VV0.650.750.720.810.910.781.000.790.810.83
EFV0.540.680.770.710.810.920.791.000.900.95
VSS0.550.670.850.710.770.940.810.901.000.95
VEU0.560.680.890.710.800.930.830.950.951.00

Drawdowns Chart

The Drawdowns chart displays portfolio losses from any high point along the way.


-20.00%-15.00%-10.00%-5.00%JuneJulyAugustSeptemberOctoberNovember
-10.45%
-5.13%
Paul Merriman Ultimate Portfolio
Benchmark (^GSPC)
Portfolio components

Worst Drawdowns

The table below displays the maximum drawdowns of the Paul Merriman Ultimate Portfolio. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.

The maximum drawdown for the Paul Merriman Ultimate Portfolio was 38.24%, occurring on Mar 23, 2020. Recovery took 171 trading sessions.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-38.24%Jan 21, 202044Mar 23, 2020171Nov 23, 2020215
-25.31%Nov 9, 2021233Oct 12, 2022
-24.64%May 2, 2011108Oct 3, 2011304Dec 18, 2012412
-20.07%Jan 29, 2018229Dec 24, 2018234Nov 27, 2019463
-19.7%May 18, 2015187Feb 11, 2016142Sep 2, 2016329

Volatility Chart

The current Paul Merriman Ultimate Portfolio volatility is 4.90%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.


2.00%3.00%4.00%5.00%6.00%JuneJulyAugustSeptemberOctoberNovember
4.90%
3.31%
Paul Merriman Ultimate Portfolio
Benchmark (^GSPC)
Portfolio components

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