Linked below are the latest Morningstar® Investment Detail Reports for the Portfolio Shield™ family.
Based on how the markets are performing, I anticipate Portfolio Shield™ will remain hedged into early next year, which I think is good. From a return perspective, the strategy hedging has been effective.
With the additional downside protection through the use of Simplify funds, I expect the strategy to underperform if stocks continue rising. This is normal when the strategy is hedged and stocks are still rising.
Given its current positioning, Portfolio Shield™ is well-positioned for a sizable market correction, which I think is good.
Portfolio Shield™ slightly increased its long-term bond hedge (TYA), slightly reduced its S&P 500 (SPD) position, and slightly increased its Nasdaq-100 (QQD) position for December across all models.
Due to the very slight change this month, you may not see any change in your allocation.
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.
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.
Steven Van Metre, CFP®