The Strategic Growth Allocation portfolio is Sizemore Capital’s answer to traditional asset allocation. It invests primarily using ETFs. The portfolio is appropriate for risk-averse investors that prefer a more passive "buy and hold" strategy that is consistent with their risk and return goals.
My goal is to achieve returns comparable to the S&P 500 Index while potentially taking on less risk.
Unlike traditional asset allocation strategy, which generally shifts assets between "conventional" equities and bonds, I incorporate non-traditional asset classes including:
High-Dividend Stocks Emerging Market Consumer Stocks Master Limited Partnerships (MLPs) Real Estate Investment Trusts (REITs) Bond Exchange Traded Funds (ETFs)
The portfolio is appropriate for long-term investors. It is rebalanced regularly as part of my efforts to manage risk. By rebalancing, I continually buy low and sell high—which I believe is the essence of successful investing.
Using historical returns data, I construct my Strategic Growth Allocation portfolio using asset classes I believe to be attractive long-term investments. The non-traditional asset classes I use tend to have relatively low correlations to the broader stock market as measured by the S&P 500 Index. I choose ETFs for inclusion in this portfolio that I personally believe correctly represent the asset classes covered.
The Strategic Growth Allocation portfolio has the following target weightings:
Large Cap U.S. Equities: 20% High Dividend Equities: 15% Euro / Pacific Equities: 15% Inflation-Adjusted Bonds: 10% Master Limited Partnerships: 10% Real Estate Investment Trusts (REITs): 10% Diversified Fixed Income ETFs: 7.5% Emerging Market Equities: 5% Small Cap U.S. Equities: 5% Cash / Short-Term Fixed Income: 2.5%
Rebalancing occurs at least once a year and may happen more frequently, depending on market conditions.
Positions in the portfolio are usually closed for one of the following two reasons:
1. I have made a major strategic change to the allocation and have decided to eliminate an asset class.
2. I have identified a new security that is a better match for the exposure that I am seeking.
Past performance is no guarantee of future results.
Performance of the Portfolio Manager's account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings distributions and broker commissions. Manager returns include trades and positions that fail Covestor's trading rules, as a result, actual client returns will differ. Covestor advisory fees are simulated and applied retro-actively to present the portfolio return "net-of-fees".
Average client returns are calculated by Covestor and are composed of the asset-weighted average returns of all active client investments (some of which may contain investment restrictions) to the underlying portfolio. These daily average returns are then linked together for the timeframe presented. These returns include cash, dividends, earnings distributions, brokerage commissions and Covestor advisory fees.
All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by Covestor, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. Variables such as corporate actions or foreign exchange may affect daily performance displays. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither Covestor nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations.
Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Portfolio Manager. Covestor makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of Covestor. Transaction history is available upon request. Portfolio classifications are provided by Covestor, and are intended to serve as a general guide.
Not all transactions listed will appear in your account due to Covestor's trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.
Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index. For certain portfolios we use an investable ETF as a benchmark, in these cases returns include management fees, transaction costs and expenses.