If you're looking for something with less interest rate risk and even better risk-adjusted long-term returns, I would recommend intermediate treasuries. However, fitting enough of them into a portfolio without leverage is challenging, and the ETFs that offer intermediate treasury futures aren’t really competitive enough in my opinion. So, you'd likely need to roll your own futures contracts.It is still very hard for me to willingly pick LTT lol, but its risk adjusted returns long term with stocks are simply better it seems. It does not feel that way because HY bond expected returns in theory should be better, but empirically it is simply not the case, over the long term.
Overall, I think this is a solid portfolio that will perform well. The only adjustments I’d personally make would be to add international equities (VXUS) and use a large-cap blend fund (VOO) instead of only growth stocks, but that's just my preference.
Honestly, those changes would pretty much align this portfolio with my current target allocation.
Thanks for sharing this, and Happy Thanksgiving if you celebrate!
Statistics: Posted by Chocolatebar — Thu Nov 28, 2024 7:29 am