Elm Partners Q4 2018 Report - Separately Managed Accounts

|
Includes: AGG, BIL, BND, BSV, DFISX, DFIVX, EFV, EWC, HYG, HYLB, IEMG, IEUR, IJR, IPAC, ITOT, IUSV, IVV, IWD, MUB, SCZ, SHY, TIP, VB, VEMAX, VEUSX, VGK, VGSLX, VNQ, VOO, VPADX, VPL, VSS, VTEB, VTI, VTSAX, VTV, VUSFX, VWEAX, VWIUX, VWO
by: Victor Haghani
Summary

Elm Partners offers diversified portfolios of ETFs and index funds using an algorithmic value- and momentum-based asset allocation system.

Elm's clients keep their funds in separately managed accounts with Fidelity, or an offshore fund for non-US investors, and pay among the lowest fees in the industry.

We perform an annual review of our investment approach, and the outcome this year is a plan to modify the Value metric for equities.

Our new metric will be the spread of the Cyclically Adjusted Earnings Yield over the ten-year TIPS real yield, to provide a forecast of the asset class' return in excess of the long-term risk-free real rate.