Defensive Bond Portfolio
for period ending June 30, 2020
This portfolio recipe is provided by VizMetrics.
t.dbnd is the Recipe ID for this portfolio recipe. This Recipe ID appears in the scatterplots below and on the Summary Page showing all portfolio recipes. You can invest in this portfolio recipe using the Recipe Ingredients listed below at
FolioInvesting.com or your favorite brokerage. See
How to Invest (below) for more details on how buy this portfolio recipe.
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- Rebalance your portfolio to keep the mix of ingredients up-to-date. See How to Rebalance below.
Risk vs. return for t.dbnd: The scatterplots below show the best portfolio recipes as dots closest to the green smiley the at top left of each scatterplot. The yellow dot shows the total return and risk for this portfolio recipe. The risk is measured by maximum loss over each period. Any dot closer to the top left corner has shown better performance using this metric.
For more metrics (
Total Return,
Risk and Volatility,
Correlation) scroll down on this page. The Summary Page compares all portfolio recipes.
Maximum Drawdown vs. Annual Return
●t.dbnd●Peer group recipes●All other recipes●S&P 500 (SPY)●U.S. Bonds (BND)●Balanced (60% Equity / 40% Bonds)
Description Defensive Bond Portfolio gives investors access to a dynamic portfolio that uses an asset allocation algorithm that chooses fixed income asset classes to invest in based on recent returns. This portfolio recipe uses exchange-traded funds and uses a dynamic asset allocation algorithm which can result in a new target allocation each month.
Category Tactical: DIY. This portfolio recipe is tactical (dynamic) and do-it-yourself.
Ingredients used This portfolio recipe invests in exchange-traded funds (ETFs) chosen from a set of 4 possible asset class ETFs. The percentage allocation (i.e., weighting) to each of the chosen ETFs is selected using the algorithm for this portfolio recipe.
Peer Group Tactical: DIY
- Tactical: This is a Tactical (i.e., dynamic, active) portfolio that is updated at the beginning of each calendar month. Tactical means that the ingredients and allocation to each ingredient can change every month. This portfolio recipe is updated monthly to reflect the new allocation.
- DIY: do-it-yourself. This is a do-it-yourself portfolio, which you can buy and update easily at FolioInvesting.com. See How to Invest, below.
You can see how this recipe has performed compared to its peers by clicking on any "Rank: Group" link in the Compare sections, below.
Methodology This portfolio recipe is created using an algorithm that chooses the ingredients and weightings for each of the asset class ETFs in this portfolio recipe. The Defensive Bond Portfolio uses a tactical (also called "dynamic" or "active") asset allocation approach. This portfolio recipe is allowed to choose from 4 ETFs that represent major asset classes. The steps to create this portfolio are as follows:
- This recipe ranks a set of 3 asset class ETFs (HYS, HYMB, MBB) based on 3-month total return.
- Then t.dbnd chooses a 100% allocation to the top-ranked ETF, as long as that ETF's 3-month return is greater than SHY. SHY is a short-term bond ETF.
- If the top-ranked ETF has underperformed SHY, then the recipe's asset allocation is 100% SHY for the coming month.
Cost Access to this portfolio recipe is included at no extra charge as part of your VizMetrics Investor subscription. You can invest in this portfolio recipe using the Recipe Ingredients listed below at
FolioInvesting.com or your favorite brokerage. This portfolio works with the Folio Unlimited Plan at
FolioInvesting.com which allows you to purchase and rebalance all the underlying ETFs in one simple transaction. See
How to Invest, below.
Recipe ingredients, updated for
Jul 2020
used for upcoming allocation
:HYS=100%
Recipe ingredients (for FolioInvesting.com), updated for
Jul 2020
used for upcoming allocation
:HYS,100.00
Update frequency: The recipe for this portfolio can change monthly. In other words, the ingredients and percentage allocation to each ingredient can change at the beginning of each month. Therefore, this portfolio requires a few minutes each month to buy or sell the ingredients to match the updated portfolio recipe.
Rebalancing stepsIf you've invested with this recipe (using the "recipe ingredients for FolioInvesting.com" above), you can quickly rebalance each month using the automated tools at
FolioInvesting.com. See
How to rebalance your portfolioIf you've invested at another brokerage, you need to update this portfolio each month to adhere to this portfolio's recipe. See
How to rebalance your portfolio for period ending June 30, 2020
Downside Deviation vs. Annual Return
●t.dbnd●Peer group recipes●All other recipes●S&P 500 (SPY)●U.S. Bonds (BND)●Balanced (60% Equity / 40% Bonds)
Standard Deviation vs. Annual Return
●t.dbnd●Peer group recipes●All other recipes●S&P 500 (SPY)●U.S. Bonds (BND)●Balanced (60% Equity / 40% Bonds)
for period ending June 30, 2020
5-year graph ●t.dbnd●Global equities (ACWI)●U.S. equities (SPY)●U.S. bonds (BND)●60% Equity / 40% Bonds (s.6040)
for period ending June 30, 2020
for period ending June 30, 2020
| | 1 year | 3 year | 5 year | 7 year | 10 year | 15 year |
| to Global Stocks (ACWI) | 0.19 | 0.05 | 0.10 | 0.10 | | |
| to S&P500 (SPY) | 0.29 | 0.09 | 0.10 | 0.10 | | |
| to U.S. Bonds (BND) | 0.55 | 0.66 | 0.56 | 0.55 | | |
| to Commodities (DBC) | -0.26 | -0.25 | 0.07 | 0.04 | | |
| to Gold (GLD) | 0.68 | 0.44 | 0.39 | 0.38 | | |
