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Zach Tripp
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Certified program manager (PMP) with a background in engineering. Fundamental investor who's portfolio consists of buy-and-hold dividend growth companies, growth companies (short-term) and index fund portfolio management (retirement / long-term savings).
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  • Diversified ETF Portfolio Performance For Q1 2014 0 comments
    May 21, 2014 9:34 PM | about stocks: BIZD, VOO, BOND, JNK

    Here is the performance for Q1-2014 for a diversified ETF portfolio I recommended at the end of 2013. Here is a link to my thesis at the end of 2013 (link).

    For the first quarter, the Treasury yield was mostly flat with a rise near the end of the quarter. This is reflected in the slight negative performance of the BOND fund.


    In regard to sectors, the utilities led the way during the first quarter, as the year started off weak for equities. The S&P 500 (NYSEARCA:VOO) did not break even until mid-February.


    VOO Chart

    VOO data by YCharts

    The portfolio as a whole was up 1.28% (with dividends), as compared with 2.14% (with dividends) for the S&P 500. The effective annual yield of the portfolio was 2.32%, as compared with 1.85% for the S&P 500. The 2.14% quarterly return of the S&P 500 is equivalent to a respectable 8.8% annual total return, on par with my 9-10% target.

    Here is the performance of the individual holdings:(click to enlarge)

    The small-cap value fund outperformed the market during Q1-2014. The Buyback Achievers fund underperformed as the momentum stocks really took hold during the first quarter. The star performer was the High Yield Bond fund, which is only 10% of the total portfolio. This strong performance enabled the bond portion of the fund to be up 0.07% when measured as an asset class.


    In case you have not heard, during the first quarter, both the Russell and the S&P 500 announced they are removing BDC's from their indexes (link). This put downward pressure on BIZD right away. The fund is still even at the end of quarter though. If work and personal commitments did not prevent me from writing a timely article, I would have recommended selling BIZD simply because of the unknown impact this could have. Being removed from all major indexes removes a lot of liquidity. Granted, the purpose of the holding is to give private equity-like exposure to the portfolio along with some exposure to the financial markets. The underlying companies are still good companies to hold in this environment, so I will keep it in this portfolio. I do believe when BIZD bottoms, it will be a buying opportunity for the retail investor.

    Disclosure: I am long VOO, VWO.

    Stocks: BIZD, VOO, BOND, JNK
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