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ETF-Cocktail (Backtest since my birthday ;-)

ETF-Cocktail
(Backtest since my birthday ;-)

Well, this might be to far-fetched. But indeed, I started a backtest over the period 1978 until the 2017. Below the following backtest-charts I added a real ETF-Cocktail, explaining on how to reshuffle specific ETFs, which are on the market:

ETF-Cocktail (Defensive, 50% US-Treasuries), Backtest 1978 - 2017


Over long periods the power of compounding is too obvious to be overlooked (see chart above). In the next diagram you can then follow up on the yearly performance-bars. Fascinating detail (to my point of view): that there is only one year, where the performance was clearly negative (the famous crisis-year 2008):


As mentioned in the beginning of the posting one can replicate the strategy via ETFs. tFrom 2003 onwards I rebuilt a ETF-portfolio for a backtest. I replaced some of the old "Value/Growth" and Size-factors -which represent the strategy above- via ETFs and added a 50%-tranche of 10year-Treasuries to the ETF-Cocktail. In the Diagram below you can see the smooth performance from Jan. 2003 until Sep. 2018:

Cheers & Enjoy
Ralph

ATTENTION: The Cocktail might have some side-effects :-)

2018-10-04 19:09:31