This strategy aims to follow the principles of some of the most successful endowment funds, Harvard & Yale. The strategy provides a larger than conventional allocation to real estate, which is particular to endowment funds.

ETFs used by shuts

  1. Total Stock Market: VTI
  2. Intermediate Stocks: EFA
  3. Intermediate Bonds: IEF
  4. Commodities: DBC
  5. Real Estate: VNQ

*At shüts we use ETFs to represent an asset class of a strategy. This enables us to backtest a strategy strength for over decades, it also provides an easier way for you to follow a strategy.

Strategy Type

This is a Steady strategy, the asset allocation does not change on a month-to-month basis.

How it works

This strategy can be implemented in your portfolio by below allocation splits between asset classes.

  1. Total Stock Market: 20%
  2. Intermediate Stocks: 20%
  3. Intermediate Bonds: 20%
  4. Commodities: 20%
  5. Real Estate: 20%

Performance

We tested this strategy running it from  09/01/2007 to 09/01/2022, last 15 years using shüts strategy backtesting.

strategy performance
Metrics Market 60/40 – Benchmark Ivy Portfolio
Performance Annualized Return(CAGR) 7.58% 6% 4.08%
Total Return 203% 141.86% 83.42%
Risk Sharpe 0.44 0.55 0.28
Sortino 0.57 0.68 0.33
Annualized Volatility 16% 10.03% 12.91%
Max Drawdown -48.1% -30.04% -41.06%
performance metrics
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