4 ETFs - Neutral + Balanced(SC)V
Asset allocation based on Ireland -Domiciled ETFs which benefit from the US-Ireland tax treaty of only 15% withholding tax on dividends.
Core-satellite investing strategy with 70/30 core/satellite allocation. The core is based on global and neutral allocation through the VWRA.L ETF.
The satellite part is based on small cap and value factor. In the calculation of percentage allocation in the satellite portion, I use the MSCI ACWI VALUE WEIGHTED index (including Emerging Markets) and MSCI WORLD VALUE WEIGHTED index (excluding Emerging Markets) to calculate the weight of Emerging Markets in the capitalization of value companies: approximately 15%; Then, with the remaining portion (85%), I use the MSCI World Small Cap Value Index to determine the percentage between USA and DM in SCV companies. It's 60% USA and 40% DM (excluding USA).
Considering the final allocation for (SC)V among the three regions, it roughly gives the following division: USA: 50% - USSC.L; DM: 35% - ISVL; EM: 15% - EMVL.L.
As there's no Ireland-domiciled ETF for developed markets (ex-USA), I chose the American-domiciled ISVL.
About me: Time horizon: between 20 and 25 years; Risk tolerance: aggressive; Intended allocation: global; The above portfolio represents 100% of my long term investments. I prefer a simple portfolio although I tilt my portfolio towards Small Cap Value.
Asset Allocation
Performance
Performance Chart
The chart shows the growth of an initial investment of $10,000 in 4 ETFs - Neutral + Balanced(SC)V, 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
The earliest data available for this chart is Mar 25, 2021, corresponding to the inception date of ISVL
Returns By Period
Year-To-Date | 1 month | 6 months | 1 year | 5 years (annualized) | 10 years (annualized) | |
---|---|---|---|---|---|---|
^GSPC S&P 500 | 16.48% | 1.67% | 14.21% | 21.98% | 13.13% | 10.91% |
4 ETFs - Neutral + Balanced(SC)V | 10.49% | 1.55% | 10.98% | 16.17% | N/A | N/A |
Portfolio components: | ||||||
VWRA.L Vanguard FTSE All-World UCITS ETF USD Accumulating | 12.19% | 0.80% | 11.31% | 17.20% | N/A | N/A |
USSC.L SPDR MSCI USA Small Cap Value Weighted UCITS ETF | 3.14% | 4.95% | 7.07% | 11.50% | 12.85% | N/A |
ISVL iShares International Developed Small Cap Value Factor ETF | 7.74% | 2.68% | 10.86% | 13.79% | N/A | N/A |
EMVL.L iShares Edge MSCI EM Value Factor UCITS ETF USD(Acc) | 13.73% | -1.28% | 17.63% | 18.90% | 6.52% | N/A |
Monthly Returns
The table below presents the monthly returns of 4 ETFs - Neutral + Balanced(SC)V, with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | -0.31% | 2.89% | 3.83% | -2.99% | 3.13% | 2.07% | 10.49% | ||||||
2023 | 7.48% | -2.05% | 0.60% | 1.33% | -2.01% | 6.40% | 4.33% | -2.85% | -3.91% | -4.07% | 9.08% | 6.81% | 21.79% |
2022 | -5.37% | -0.84% | 2.03% | -6.74% | -0.98% | -8.90% | 6.76% | -2.98% | -8.82% | 5.10% | 6.34% | -2.01% | -16.70% |
2021 | 1.80% | 4.03% | 2.11% | 0.12% | 0.33% | 2.10% | -3.17% | 3.82% | -2.74% | 4.52% | 13.33% |
Expense Ratio
4 ETFs - Neutral + Balanced(SC)V has an expense ratio of 0.25%, which is considered low compared to other funds. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
The current rank of 4 ETFs - Neutral + Balanced(SC)V is 35, suggesting that the investment has average results relative to other portfolios in terms of risk-adjusted performance. This ranking is determined by the cumulative values of the indicators listed below.
Risk-Adjusted Performance Indicators
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 ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio | |
---|---|---|---|---|---|
VWRA.L Vanguard FTSE All-World UCITS ETF USD Accumulating | 1.47 | 2.24 | 1.27 | 1.19 | 5.45 |
USSC.L SPDR MSCI USA Small Cap Value Weighted UCITS ETF | 0.53 | 0.97 | 1.11 | 0.63 | 1.78 |
ISVL iShares International Developed Small Cap Value Factor ETF | 1.01 | 1.53 | 1.18 | 0.75 | 3.81 |
EMVL.L iShares Edge MSCI EM Value Factor UCITS ETF USD(Acc) | 1.11 | 1.67 | 1.19 | 0.77 | 5.25 |
Dividends
Dividend yield
4 ETFs - Neutral + Balanced(SC)V granted a 0.36% dividend yield in the last twelve months.
TTM | 2023 | 2022 | 2021 | |
---|---|---|---|---|
4 ETFs - Neutral + Balanced(SC)V | 0.36% | 0.40% | 0.35% | 0.30% |
Portfolio components: | ||||
VWRA.L Vanguard FTSE All-World UCITS ETF USD Accumulating | 0.00% | 0.00% | 0.00% | 0.00% |
USSC.L SPDR MSCI USA Small Cap Value Weighted UCITS ETF | 0.00% | 0.00% | 0.00% | 0.00% |
ISVL iShares International Developed Small Cap Value Factor ETF | 3.47% | 3.82% | 3.37% | 2.82% |
EMVL.L iShares Edge MSCI EM Value Factor UCITS ETF USD(Acc) | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way.
Worst Drawdowns
The table below displays the maximum drawdowns of the 4 ETFs - Neutral + Balanced(SC)V. 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 4 ETFs - Neutral + Balanced(SC)V was 25.51%, occurring on Oct 12, 2022. Recovery took 312 trading sessions.
The current 4 ETFs - Neutral + Balanced(SC)V drawdown is 2.11%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
---|---|---|---|---|---|---|
-25.51% | Nov 9, 2021 | 241 | Oct 12, 2022 | 312 | Dec 27, 2023 | 553 |
-5.56% | Sep 7, 2021 | 22 | Oct 6, 2021 | 14 | Oct 26, 2021 | 36 |
-4.78% | Apr 1, 2024 | 15 | Apr 19, 2024 | 15 | May 10, 2024 | 30 |
-3.49% | Jun 15, 2021 | 25 | Jul 19, 2021 | 8 | Jul 29, 2021 | 33 |
-3.34% | Jan 2, 2024 | 12 | Jan 17, 2024 | 9 | Jan 30, 2024 | 21 |
Volatility
Volatility Chart
The current 4 ETFs - Neutral + Balanced(SC)V volatility is 2.51%, 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.
Diversification
Asset Correlations Table
ISVL | EMVL.L | USSC.L | VWRA.L | |
---|---|---|---|---|
ISVL | 1.00 | 0.59 | 0.58 | 0.66 |
EMVL.L | 0.59 | 1.00 | 0.55 | 0.73 |
USSC.L | 0.58 | 0.55 | 1.00 | 0.79 |
VWRA.L | 0.66 | 0.73 | 0.79 | 1.00 |