• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
ETF Portfolio Management

Toll Free: (866) 409-5844

ETF Portfolio Management

ETF Portfolio Management

  • Home
    • ETF Portfolio Management, LLC
  • About Us
    • Philosophy
    • Management
    • Trend Following
    • Pledge to Give Back
  • ETF Portfolios
    • Investable Benchmarks
    • Absolute Return Strategies
  • Performance
  • Presentations
  • News
    • All News
    • Absolute Return Strategies
    • Blog
    • Investable Benchmarks
    • Letters
    • Media
    • Press Releases
  • Resources
    • FAQs
    • Custodians
    • Definitions
    • Disclosures
    • Why Use Index ETFs?
  • Contact Us

Annual Letter 2014

January 13, 2015 By dkreinces

January 2015

To Our Clients and Prospects:Chart Annual Letter 2014

In 2014, global equities (VT) gained 4%, led by U.S. equities (VT) which rose 13%. Foreign markets underperformed, with foreign developed equities (VEA) down 6%, and emerging markets (VWO) down 1%.

Real estate (VNQ) and long-term treasuries (TLT) both delivered strong returns with respective gains of 30% and 27%. The biggest decline was in commodities (GSG) which fell 33%, due to a 42% drop in oil (USO).

Medium-term treasuries (IEF) gained 9%, while treasury inflation-protected securities (TIP) rose by 4%, and the total bond market (BND) increased by 6%.

The investable benchmark portfolios performed very well delivering 9% to 20%. The trailing 10-year total return range is now 110% to 130%, or 7.7% to 8.7% annualized. These efficient portfolios yield over 2.0% annually, with blended expense ratios under 0.2%.

Over the past 28 years, the combination of indexing and trend following delivered impressive performance. The 60/40 SI portfolio, 60% Systematic Index and 40% S&P 500, gained 9.7% annually, with far lower risk. Trend following lowered the portfolio’s worst three-year total return to -2%, versus -38% for the S&P 500 alone.

See the 28-year “escalator-like” return stream online in our ETF Trend Following presentation. On slides 4-10, we explain the supporting data for our 50/50 Portfolio, which combines indexing and trend following. Over the past seven years, the 50/50 gained 37%, while 60/40 SI rose by 49%.

The presentation also introduces Tactical (T) and Tactical 2x (T2). Since inception, these strategies gained 8% and 11%, respectively, while the S&P 500 returned 6%. On slide 14, we highlight the extraordinary risk control and non-correlation in Tactical, by showing the gains it delivered on the roughest individual days for the S&P 500.

As always, please let me know if you would like to plan a call or meeting to discuss.

David S. Kreinces
Founder & Portfolio Manager

Click here for a PDF version.

Share Button

Category iconAbsolute Return,  All News,  Investable Benchmarks,  Letters Tag iconAnnual Letter,  Asset Class Rotation,  Double Asset Class Rotation,  eMAC,  ETF PM,  ETF Portfolio Management,  investable benchmarks,  Robo-Advisor,  Swensen ETF,  Yale ETF

Primary Sidebar

Recent News

  • Top Growth Trends (1/23)
  • Annual Letter 2022
  • Investable Benchmark Update (12/22)

Recent Video

Join Our Market Update List

Footer

2945 Townsgate Road, Suite 200
Westlake Village, CA 91361
Phone: (866) 409-5844 Toll-Free
Fax: (805) 480-1111

Privacy Policy
Terms of Use
Sitemap

© 2022 ETF Portfolio Management, LLC

  • LinkedIn
  • RSS
  • Twitter