Linked below are the latest Morningstar® Investment Detail Reports for the Portfolio Shield™ family.
The allocation to the Nasdaq-100 (QQQ) and the Russell 2000 (IWM) were reduced to increase the allocation to the S&P 500 (SPY) across all Portfolio Shield™ models for August.
Several have inquired when Portfolio Shield™ may begin hedging its equity exposure. To provide as much transparency as possible and to help you understand how Portfolio Shield™ works, the probabilities are extremely high that Portfolio Shield™ will start hedging in the coming months. Starting with September’s rebalance and for the following three months, the probabilities Portfolio Shield™ will hedge across all models increases significantly.
As a reminder, all strategies are rebalanced on the first trading day of each month and at that time, any new monies are invested according to the model strategy you are in.
For those who want to change between strategies, changes will occur at the next rebalance on the first trading day of each month.
Due to the increase in smaller balance accounts, lower-priced ETFs have been added to the models to substitute the primary Exchange-Traded Fund (ETF) for those who don’t have a large enough account balance to hold the full model of ETFs. Small balance accounts may not have every position in the strategy due to price limitations of the securities in the allocation since ETFs are only traded in full share increments.
There is only a 0.3% allocation to cash in each model. Due to a misreporting between Morningstar® and the ETF providers, the Asset Allocation box on the fact sheets may show a higher cash position than is actually in the model.
If you have any questions or would like to change which Portfolio Shield™ strategy you are invested in, please let me know.
Thank you,
Steven Van Metre, CFP®
