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
- Total Stock Market: VTI
- Intermediate Stocks: EFA
- Intermediate Bonds: IEF
- Commodities: DBC
- 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.
- Total Stock Market: 20%
- Intermediate Stocks: 20%
- Intermediate Bonds: 20%
- Commodities: 20%
- 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.
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% |